Not Just Spotify, Netflix Also Negotiated With Google For A 'Sweetheart' Deal: Court Documents Reveal
Portfolio Pulse from Ananya Gairola
In 2017, Google offered Netflix a discounted rate of 10% for in-app payments on Android, a deal that would have made Netflix a 'platform development partner'. However, Netflix declined the proposal, estimating a loss of nearly $250 million annually through Google Play Billing signups. This is not the first instance of tech giants offering significant discounts to major companies. In 2016, Apple offered Amazon a 50% discount on subscription revenues from its streaming video-on-demand app.
November 10, 2023 | 10:13 am
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Apple has previously offered significant discounts to major companies, including a 50% discount on subscription revenues to Amazon.
While the news mentions Apple's past actions, it does not provide any new information that would likely impact Apple's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Amazon received a 50% discount on subscription revenues from its streaming video-on-demand app from Apple in 2016.
The news mentions a past deal between Amazon and Apple, but it does not provide any new information that would likely impact Amazon's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Google's attempt to secure Netflix as a 'platform development partner' was unsuccessful, which could have implications for its revenue from in-app payments.
Google's offer to Netflix was declined, which could have secured a steady stream of revenue from in-app payments. However, the impact on Google's overall revenue is likely to be minimal given its diverse income sources.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Speculation surrounds Google's User Choice Billing agreement with Spotify, which allows Spotify to use its own payment system for subscriptions while still providing Google with a share.
The news mentions a potential agreement between Spotify and Google, but without further details, it's unclear how this would impact Spotify's stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Netflix declined Google's offer for a discounted rate on in-app payments, potentially avoiding an estimated annual loss of $250 million.
Netflix's decision to decline Google's offer could be seen as a positive move by investors, as it potentially avoids a significant annual loss. This could have a positive impact on Netflix's financial performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100