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But Apple doesn't distribute Netflix's content. Netflix does all of that themselves. All Apple does is host a free app. The content is still hosted on Netflix servers.

That makes sense for small companies who need help reaching customers.

For Netflix, they are making the bet that they won’t lose much, if at all, by pushing subscribers to sign up directly with them. If that’s true, then by definition Apple isn’t providing any value.

> Take a look at iOS satisfaction rate among its users VS the other phone vendors.

Huh? But don’t the other phone vendors also offer worldwide product distribution (I.e. the Google Play Store)? How is the difference between iOS satisfaction vs other vendor satisfaction indicative that this is a cheap solution for world wide product distribution?

Distributing digital products worldwide isn't hard, now that we have the internet.

Customers don't care whether apple takes 1% or 50%.

It's not the distribution so much as the hundreds of millions of paying customers.