Live data from Hacker News

Apple execs describe a “unique arrangement” with Netflix (2018)

twitter.com

71–80 of 289 posts

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#71
post #60

The problem here are not the special deals, saurik commented he cut special deals in the Cydia store occasionally the last time this topic came up. The problem is that there is no alternative to Apple when it comes to publishing software and content on the iPhone and that makes these kind of deals unfair.

This is naive, IMO.

Even if the app store was run differently, say allowing a competing way of installing apps, Apple still have plenty of fungible power to make such deals. You might have ticked a box to make it technically fair, for some definition of, but that would probably be just cosmetic. IE, app store would still represent most revenue and everyone is in the same position but a few geeks.

The "platform game" establishes market power, where buyers and sellers need to go through you. They have no negotiating power, and you can price to make deals that take all the "surplus utility" off the table, in classic economic terms.

So... reality isn't perfect and some players are big enough to negotiate. Netflix is that player here. They negotiate when they have to, but try to keep it quite.

When the market is this structured, this is how it works.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#72

Earlier quoted context omitted.

Isn't complying with IAP rules part of app review?

The amount of commission that Apple receives from an IAP isn't something that's in the code for an app. It's not something that could be part of the app review process. It's an arrangement between Apple and the developer.

The app review processes explicitly are testing the backend components for compliance as well.

The Fortnite app behind the lawsuit that we got these docs from was explicitly taken down for failing app review by not complying with IAP guidelines.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#73
post #62

Tech companies that reach monopoly scale (like Apple, Facebook, Amazon) should have to disclose all their agreements and honor a "Most Favored Nation" clause giving all companies the same pricing and access as the best negotiated agreement with any one company. This is the most reasonable way I can think of without breaking them up to prevent them picking winners and losers as new opportunities emerge. If you have a…

We could also just put a tax of 100% on any revenue in excess of $10bn a year and nip this entire society-destroying problem in the bud.

Talking about monopolies, why does Facebook and HN have network issues at the same time.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#74
post #62

Earlier quoted context omitted.

We could also just put a tax of 100% on any revenue in excess of $10bn a year and nip this entire society-destroying problem in the bud.

Why not $9bn a year?

You got to start the discussion somewhere.... For me, I t think that it should be related to the number of employees.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#75
post #71
post #60

The problem here are not the special deals, saurik commented he cut special deals in the Cydia store occasionally the last time this topic came up. The problem is that there is no alternative to Apple when it comes to publishing software and content on the iPhone and that makes these kind of deals unfair.

This is naive, IMO. Even if the app store was run differently, say allowing a competing way of installing apps, Apple still have plenty of fungible power to make such deals. You might have ticked a box to make it technically fair, for some definition of, but that would probably be just cosmetic. IE, app store would still represent most revenue and everyone is in the same position but a few geeks. The "platform game"…

An alternative market would create pressure on Apple. If Netflix tells the App store to go screw themselves and lists on a different store, then the App Store gets that much less traffic and either has to compete or lose out.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#76
post #62

Earlier quoted context omitted.

We could also just put a tax of 100% on any revenue in excess of $10bn a year and nip this entire society-destroying problem in the bud.

It's an interesting thought experiment at least. What would the hidden incentives of something like that be? For example, if a company wanted to keep growing, it would have to split organically into separate corporate entities. What would stop them establishing "favored" relationships with each other? Say for example Facebook splits out "Zuckerburg data centers inc" - what's to stop them pricing themselves above mark…

You'd need to actually draft a law rather than write it on a napkin and there would be armies of very well paid lawyers trying to avoid it, but that's common to any attempt to break up concentrated power.

In that context it wouldn't be all that hard. You'd need to figure out some definitions for common ownership, joint enterprise, and so on. A lot of those laws and definitions already exist. It's only really in the last few decades that we've abandoned antitrust law but we have successfully done things like this in the past.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#77

Tech companies that reach monopoly scale (like Apple, Facebook, Amazon) should have to disclose all their agreements and honor a "Most Favored Nation" clause giving all companies the same pricing and access as the best negotiated agreement with any one company. This is the most reasonable way I can think of without breaking them up to prevent them picking winners and losers as new opportunities emerge. If you have a…

This is a solved problem. Just do what most American cities do with other natural monopolies like utilities: use careful price controls to cap margins and slow rate increases. You don't need to invent some esoteric market-based solution, especially for a service where marginal costs are near zero and supply is almost infinite.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#78
post #62

Earlier quoted context omitted.

We could also just put a tax of 100% on any revenue in excess of $10bn a year and nip this entire society-destroying problem in the bud.

Talking about monopolies, why does Facebook and HN have network issues at the same time.

Maybe people visit other sites when the ones they would have used go down? I don't know for sure but it is a plausible explanation for me.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#79
post #71

Earlier quoted context omitted.

This is naive, IMO. Even if the app store was run differently, say allowing a competing way of installing apps, Apple still have plenty of fungible power to make such deals. You might have ticked a box to make it technically fair, for some definition of, but that would probably be just cosmetic. IE, app store would still represent most revenue and everyone is in the same position but a few geeks. The "platform game"…

An alternative market would create pressure on Apple. If Netflix tells the App store to go screw themselves and lists on a different store, then the App Store gets that much less traffic and either has to compete or lose out.

From a consumer point of view, this is terrible.

Re: Apple execs describe a “unique arrangement” with Netflix (2018)

#80

Earlier quoted context omitted.

Why not $9bn a year?

You got to start the discussion somewhere.... For me, I t think that it should be related to the number of employees.

A cap on employees would probably be a negative thing, but a cap on revenue per employee would incentivise hiring people
Post reply on HN