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The problem with your analysis is most people already have a Netflix account, so Apple will get 0% of those subscriptions. Same thing if a new customer signs u
by originalgeek 16y ago
The problem with your analysis is most people already have a Netflix account, so Apple will get 0% of those subscriptions. Same thing if a new customer signs up on netflix.com, then starts viewing on their iOS device.
If Apple attracts a new customer via the AppStore, similar to how affiliate marketers bring new business to a vendor, they get a 30% cut.
I do however agree it is not consumer friendly. With the "most favored nation" clause in the agreement, vendors will have little choice but to raise prices to meet the commission on the fraction of sales Apple takes their cut.
- Cadsby 16y agoI'm not sure this will turn out to be the case. Amazon has always had a most favored nation clause with regards to ebooks, and that policy didn't cause ebook prices to climb, even though Amazon is the largest seller. It's also worth mentioning that Newspapers and Magazines make the majority of their revenue through advertisers. This is why they choose to heavily discount subscriptions in the first place. If it turns out being on iOS gets them noticeably more subscriptions, then yes they may lose money on those subscriptions, but it may be a net gain if it enables them to raise their advertising rates accordingly. Time will tell.