Netflix had a unique opportunity with Google, wherein it was offered a special and rare deal allowing it to retain 90 percent of the revenue generated. This exclusive offer, reportedly not extended to any other entity, was revealed through documents and testimony in the Epic v. Google trial. Despite being considered a ‘once in a lifetime’ deal, Netflix opted not to proceed, a decision that was not made lightly, as the company had its reasons for declining the offer.
Back in 2017, Google offered Netflix a discounted rate of 10 percent of its in-app payments on Android, according to The Verge. While the deal sounds an enticing one, Netflix was not in a position to accept it because it forecast that it might have ended up losing even more money. In an internal document, an estimation was mentioned that even if all Android in-app signups came through Google Pay Billing, the video streaming service would lose around $250 million in a single year of those signs.
Furthermore, Netflix did not foresee a situation where Google’s payment system would surpass or even align with its own. While Google spokesperson Dan Jackson refrained from commenting on the specific offer extended to Netflix when approached by The Verge, he did note that it was standard practice for the advertising giant to offer varying rates to developers. Netflix had a unique
Netflix may not have entertained Google’s offer, but it took one from Apple a few years ago, where its arrangement with the Cupertino firm meant that Apple only took 15 percent of revenue on iOS. For those that do not know, Apple typically charges 30 percent from developers, but it is likely that Netflix accepted this offer because the majority of iOS users in the U.S. are also used to media consumption through video streaming services.