6 ms·
If Netflix doesn't like being dependent on Apple, they should have built the rails. They chose not to, and that's probably the correct move, but I don't see why
by Despegar 8y ago
If Netflix doesn't like being dependent on Apple, they should have built the rails. They chose not to, and that's probably the correct move, but I don't see why they'd complain about the 30%. They could have not spun-out Roku and not have to pay for distribution to anyone! They obviously knew that being everywhere would maximize profits in the long run. But it goes hand-in-hand that now they've eliminated the capital expenses of developing a platform, they'd be paying others for distribution.
I mean that's what net neutrality was always about really, not being responsible for the rails but also regulating them to maximize the advantage to themselves (a standard commoditize your complements play). They dropped their net neutrality advocacy after they got big enough and wanted to partner with cable companies and wireless carriers for distribution, which they gladly pay for.