Essentially it works like this: The Apple TV functionality hinges on your iTunes user account, the same kind that’s powered 25 billion app downloads to date. You give Apple your credit card details then click “okay, charge it” when you buy an app, rent a movie, or download a song from iTunes. Now Apple’s made joining Netflix just as frictionless through Apple TV, eliminating the need to retype your credit card info into the Netflix app. You just allow Apple to charge your iTunes account.
It works from a consumer point of view because it’s easy, and because we’re all getting used to trusting Apple as a pay channel for our apps and content–hand