NEWS  Apple  January 26, 2024  Reading time: 2 Minute(s)

Max (RS editor)

In a surprising revelation last week, it was disclosed that the Netflix app would not be featured on Vision Pro upon its launch. Even more intriguingly, users would not be able to run the iPad version of the Netflix app on the device. Netflix’s co-CEO, Greg Peters, sat down with Ben Thompson of Stratechery to shed light on the rationale behind this unexpected decision.

 GREG PETER [IMAGE CREDITS: NETFLIX INVESTORS] 

According to Peters, the move is rooted in Netflix’s overarching strategy of allocating resources to areas that generate a substantial return for the company. He emphasized that, as of now, Vision Pro is deemed "so subscale" that it does not significantly impact the majority of Netflix users. However, Peters hinted at ongoing discussions with Apple and expressed a willingness to reassess the situation.

Peters defended Netflix’s cautious approach, stating:

“We try and be very rigorous about, ‘What’s the effort to integrate on any given set of devices and what’s the benefit for the members that we serve?’ We have to be careful about making sure that we’re not investing in places that are not really yielding a return.”

The co-CEO acknowledged the constant dialogue with Apple and suggested that changes in the strategic landscape could alter Netflix’s stance:

“Certainly we’re always in discussions with Apple to try and figure that out but right now, the device is so subscale that it’s not really particularly relevant to most of our members.”

However, when pressed on whether there were ways Apple could influence Netflix's strategic decisions, Peters affirmed that Apple's actions could indeed impact the streaming giant's calculus.

The relationship between the two tech giants has been characterized by active discussions over the years, with Peters highlighting both the agility and occasional time-consuming nature of their collaborations.

One notable omission in Peters’ explanation was a clear rationale for why Netflix couldn’t at least allow users to run the iPad version of the app on Vision Pro. This decision becomes even more perplexing when compared to Disney+, which will offer a full-blown visionOS app on Vision Pro from day one. In contrast, Netflix users will be limited to accessing the platform through Safari.

As the streaming landscape continues to evolve, this decision by Netflix raises questions about the delicate balance between strategic focus and user experience. Whether Netflix and Apple can find common ground in the future remains uncertain, leaving users and industry observers eagerly awaiting developments in this ongoing saga. You can read the full interview on Stratechery.

 SOURCE: STRATECHERY | COVER IMAGE: REVIEW SPACE