Link: Netflix Deal Reveals Apple’s Secret Sauce: iTunes Pay Channel | Fast Company

Netflix Deal Reveals Apple’s Secret Sauce: iTunes Pay Channel | Fast Company

As announced this week, the new Apple TV brings a new UI, better internal specs, and full HD capability to the table. But there’s the business equivalent of an Easter egg hidden in it for Netflix subscribers: From now on, if you want to join Netflix you can do it through your Apple TV, and Apple handles the payments via its iTunes back channel.

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

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