Paying over a third of all revenue generated from searches on Apple’s platform. That’s incredible. Not a lawyer so I have no idea how this will work out legally, but I have a hard time parsing such an enormous pay-share as anything other than an aggressive attempt to stymie competition. Flat dollar payments are easier to read as less damning, but willingly giving up that much revenue from the source suggests the revenue of the source is no longer the primary target. It’s the competitive advantage of keeping (potential) competitors from accessing that source.
I’d agree, though I wonder how much of this is how appealing consumers find the competition? None of them seem to be making major inroads at the moment. The biggest competition is also raising prices, nullifying the competitive penalty Netflix would face from that move.