I don’t see any reason they wouldn’t be paying a fixed cost. It would allow Apple to offer Arcade at a low cost and high marginal profit and it would mean that game developers don’t have the risk of it not succeeding.
Netflix also license it’s non original and original content for a fixed priced
Apple don't pay a fixed cost to the game studio, see other comments. Netflix don't buy at a fixed price either, the production company gets recurring fees based on views.
Aren’t those all reruns though, not originals? That’s quite a different situation. Existing shows are a known commodity. One of the things that enticed the producers of House of Cards was the revenue deal.
Typically, licensing fees are negotiated for a few seasons at a time. It's a flat rate per season, so whatever production costs are incurred, they're paid for by the studio — not Netflix. If something goes over budget, Netflix has already paid to use it. Likewise, if a show is immensely successful (like, say Orange Is the New Black), Netflix doesn't have to worry about paying more for that, either.
So by keeping viewership numbers private, Netflix actually has an edge in licensing negotiations between studios. Because if a studio doesn't know how popular a series is, it's harder to push for more money.
Netflix also license it’s non original and original content for a fixed priced