FREE TRIAL - hips/JOCRKit.com From: Peter Stem) To: Philp Schiler cc: Eddy Cus Mat Fische: I sce: Subject: Re: TIMELY (Netfix) Attachments: sent: 077302018 10:31:30 PM 0000 (GMT) ‘Spoke to Bill Holmes. Short version: He is taking our proposal for an extension with no further IAP tests to Reed late tonight (Reed sin Hal) along vith th rest o the team, and wil get back to us tomorrow. He also knows that Edy is ready o cal Reed f that would hep. Longer version: explained hat these IAP tests are not OK for Apple. Our commitment to developers and customers isto run the world's best App Store, and when Netix s cycling in and ou, they are undermining that. | also explained tht we run a principled App Stor, and they have a unique amangement because twas stick before the existing Video Partner Program ame into effect. That being sad, inthe pir of supporting th long-term parinership and relationship, e would extend our existing deal on current terms for 2 years. is0 gave hm assurances that we vould work ith them t cycle our promotions. of Netix so that they can assess ther effectiveness, without Nf having to exit the App Store. Final, let him know about some of the intives we are pursuing to reduce voluntary churn. Bil et me know that Netfx believes i's in their strategic interest to manage payments themselves, and t's hard ith existing data to make a case for keeping going for 2 more years given the current tat oftheir understanding, hance the tess, but they appreciate our issues and wil see f we can get this resolved. Now we wait On Jul 26,2018, at 4:39 PM, Pritp Schiler < | > ote: Soy typo 7030 (duh) Sent fom my iPhone On Jul 28, 2018, at 4:38 PM, Phi Schiter < NNN te: Its true tha if they don' renew an agreement they go fo the same 7838 first year mode as everyone else. If renew the current agreement for another year (which would be goo for both of us) would hope that ve get a commitment fom them tha they il tay ith the IAP model, not keep testing no 1AP and threatening to drop i during his time. Sent fom my iPhone On Jui 26,2018, 2t4:33 PM, Peter Stern < | te: Phil, Eddy, Inthe absence of us being villng to entertain a reduction in Netfix's IAP commission rate below 15%, Netix lt us Know tha they want to extend their IAP tests to al countries including the US, stating as early as this Wednesday. They seem to want to do tis so they can get a read prior to th expiration ofthe current agreement in September. They are aisolkely nervous thatf the agreement expires, even though they could shut down IAP going forverd, oll their current subs in year 1 would pop up from 15% to 30%. Our sense s tha th only way we might cool things off would be or us to extend the existing rev share agreement as PX-0421.1 HIGHLY CONFIDENTIAL - ATTORNEYS" EYES ONLY APL-APPSTORE_02026861