Netflix refuses to be part of Apple's new streaming video service

CEO Reed Hastings sees Apple as a rival rather than a partner

Netflix won't be taking part in Apple's imminent new video streaming service, its CEO Reed Hastings has confirmed.

"We want to have people watch our content on our service," he said at a press conference on Monday, adding: "We've chosen not to integrate into their service."

Apple is expected to unveil its video steaming service on Monday 25 March, leveraging the one billion or so global users of its iPhones, iPads and Mac PCs. In addition to providing TV shows and films from programming partners, such as HBO, the service is also expected to offer original content (as well as Carpool Karaoke, which is already stream on iTunes).

Hastings added that he saw Apple not as a potential partner, but as a direct rival: "We've always had massive competitors. We've been competing with Amazon in video streaming. These are amazing, large, well-funded companies with very significant efforts. But you do your best job when you have great competitors."

The move should not come as a surprise: Netflix has avoided integration with Apple's television application on its various platforms, including the Apple TV set-top box. Furthermore, Apple has stopped allowing its users to re-subscribe to the Netflix app on iOS via Apple's App Store, in order to avoid the 30 per cent commission that Apple takes on every sale.

Apple could attract as many as 100 million subscriptions within five years, according to Wedbush Securities analyst Daniel Ives. However, its subscriber numbers are likely to be limited to people within the Apple eco-system and, hence, lack broader appeal, and to achieve 100 million subscribers would require a high proportion of Apple users to subscribe.

"If Apple executes with minimal speed bumps and aggressively acquires content given the company's massive installed base and unmatched brand loyalty, we believe reaching 100 million subs in the medium term (three to five years) is a realistic goal that could translate into a $7 billion to $10 billion annual revenue stream over time for Apple and further cement its installed base and halo effect," wrote Ives in a research note earlier this month.