Apple’s value is the set of customers who sign up first on iOS rather than web (edit: and who couldn’t be nudged to the web). I’d guess the number isn’t the full billion, but enough that Netflix doesn’t want to lose them.
Anecdotally, there are a lot of "app only" users out there who aren't familiar with opening up a browser application and typing in a URL. I don't know what percentage of users we're talking about, there.
But I have experienced plenty of users that are comfortable with tapping an app on their phones, and even installing one from an app store, but aren't comfortable with using a web browser.
It's not just older, non-technical users. Lots of kids have never known anything but apps. You know how your "average" Mac/PC user would have looked at you funny if you told them to open a terminal or command prompt 15 years ago? That is how many kids view a web browser these days - a slightly weird relic of an earlier time.
(Just to be clear: I detest this state of affairs!)
To be fair those kids are not paying for netflix and a browser is an app or a siri command away. There are people who watch tv and others who pay the cable bill.
