I think you're thinking of it backwards. Amazon Prime video working on iOS and AppleTV is in Apple's interest because it means however many prime members will use those devices. Apple's content strategy is purely about selling hardware. Apple's not getting into the content business like Amazon and Netflix are (both of them are producing original programming... all Apple's done in that regard is the iTunes music festival in London which seems to be more PR event and technology test than anything else.)
This is why Apple worked with Netflix, HBO, etc to get apps on the Apple TV even before the TVOS was ready.
They already have apps for iOS. I can only assume this is about the 30% cut that Apple takes for in-app digital purchases. While it doesn't matter for Prime videos, it matters for Amazon Instant Video sales and Rentals. On iOS they can nudge users over to Safari to buy. No such option on Apple TV.
Apple never banned “Amazon Prime”. Apple wanted Amazon Prime from day one. Why wouldn’t Apple want Amazon Prime on Apple TV’s when it already existed on iOS devices ?
As far as I've read and understand, Apple isn't preventing Amazon from releasing a video streaming app on the AppleTV. Amazon is the one that has been playing hard ball, removing other streaming devices from their store and not releasing a video app (just like they have on iOS) for AppleTV.
edit: I should add that I believe the reason Amazon isn't releasing on AppleTV is that Apple won't allow people to subscribe for Prime via the App without requiring their 30% cut. All the other streaming services (and there are dozens if not hundreds) on AppleTV require users to subscribe via means outside of the AppleTV app itself.
The new AppleTV has an App Store. Does this mean Amazon can't or won't create an app for Prime Video for the AppleTV? (Can't or won't, either answer would be telling.)
You're right that anyone can make an app and that's separate from integration with system-wide search and the TV app, but when you make an app Apple has a bunch of restrictions over signup, the language you use around signup, and Apple gets a cut.
Over the years there has been drama between Netflix and Apple over it (and Spotify and Amazon Prime Video). I think it's mostly been resolved, but Apple wants apps to integrate more deeply but it sounds like it needs to convince these companies to do it one at a time.
How much more “partnering” can you have than Netflix being one of the first streaming apps on the iPad and the third Gen AppleTV - which didn’t have an App Store.
There isn’t quite the integration between Netflix and the TV app as there is with other providers only because Netflix didn’t want it. But if you search for a movie in the TV app and the movie is available from both Apple and Netflix, they will show you it’s available in Netflix instead of trying to get you to buy it.
Apple sells hardware. You can’t sell streaming hardware that doesn’t work well with Netflix.
I doubt Apple sees AppleTV+ by itself as a profit generator any more than Amazon sees Amazon Prime as a revenue provider. It just makes the bundle more attractive which gets more people into the ecosystem.
Apple and Amazon have all types of bundle deals/discounts if you buy other streaming services within their apps.
I don't think this is really the case. First, I don't think Apple regards iTunes as anything else but means to sell more Apple devices. They make some money on it but it's still negligible compared to hardware profits. Second, there are other content providers (e.g. Netflix) already present on the Apple TV. Third, Amazon clearly has no problem with conducting business with their direct competitors; it's well known that Netflix is one of the most important customers of AWS, often beta testing new services before they become publicly available. Neither does Apple, the default search engine on all Apple devices is still Google.
For what it is worth, Apple _does_ have this arrangement with at least one other company. It is however a partnership deal with extremely specific terms:
- The app must be a video subscription app (which can also provide purchases and rentals)
- You must support iOS, iPadOS, and tvOS versions of the app
- You must integrate into the Apple TV app and into Siri search and playback APIs
- You must allow the user to subscribe through Apple, which will result in a 15% cut of the subscription fee (in this case, Apple gets 15% of the cost of Amazon Prime)
- Additional purchases made against an apple-backed subscription must be in-app purchases, of which Apple gets a 15% cut (so renting a recent movie or subscribing to Showtime would result in a 15% revenue cut)
- (AFAICT) Purchases/subscriptions/rentals against an account with existing billing information are not subject to any Apple revenue share
- (AFAICT) Account management such as configuring or troubleshooting payment options for externally subscribed accounts must be outside of the app.
I imagine Amazon suspects that they have enough people who have already purchased prime that the in-app purchase usage won't be a significant revenue drain - and I imagine that Apple has a contract with terms specifically to prevent Amazon "pulling an Epic" should it turn out that their assumption of subscription percentages be wrong.
Prime Video has been struggling so Amazon can't afford the strategy tax of limiting it to their own devices [1]. The more Apple TVs that are sold by Apple, the more untenable their position becomes, especially when Netflix will be on any device. Amazon vs Google might be turning into a hot war (which makes sense since they're competing in an increasing number of businesses), but that's not the case with Apple.
But Amazon Prime streaming is not (yet?) available on the AppleTV that the kids use. Sure I keep meaning to jailbreak the darn thing but I never quite find the time to do so.
Netflix has huge penetration into hardware that Amazon does not have and to me that is a huge leg up for them. Also I can not believe that Netflix does not have an ace up their sleeve, i.e., a serious infusion of streaming content. However, I would be in awe if they did not have that ace up their sleeve and are instead trying to push the content providers into the present so that we can get on with the future.
Amazon didn’t have to. Netflix doesn’t. Apple is a lot more lenient about which apps can get on the AppleTV than Roku. Roku wants a cut of ad revenue and forces each provider to make special deals.
Maybe it's been grandfathered in? But isn't it already the status quo for Apple to selectively give favorable treatment to bigger operators? Prime Video's app previously disabled in-app buying, but at some point in the past year they made a deal with Apple:
> Apple and Amazon very, very quietly unveiled a monumental app deal this week, without fanfare or, sadly, much in the way of transparency. Out of nowhere, buttons to buy or rent movies appeared in the Amazon Prime Video app. It’s difficult to express how strange this is: for over a decade, Apple has stuck to the rule that all digital goods sold in iOS apps must use Apple’s payment methods, including Apple’s 30 percent cut.
The problem here is that there is a fundamental conflict of interests.
Apple wants to sell expensive devices with a big markup which by definition not everybody will be able to afford (TV is popular with low income demographics).
Big content doesn't care about "open" in the free software sense but they want to be able to sell content to everyone which is why they still sell DVDs.
Since TV is an almost completely passive experience the only way for apple to get ahead would be either turn it into a more "active" experience or get exclusive content which would not be in the content industry's interest.
I think sometime last year, Amazon removed the sales of Apple TV and Chrome cast from their platform. The platform decides what is profitable for them. After all the consumers and the businesses have their choices open on what to use. But i seriously want Apple to be diplomatic in this issue and allow whatever is best for everyone.
You are claiming that Amazon is on a wide variety of platforms and that's a reason to choose their ecosystem over Apple which encourages the purchase of an Apple device.
I don't agree. Google and Amazon are trying to get into Apple's device ecosystem game as it's way more profitable and offers more control than inserting apps on devices, which seems a failed strategy. Microsoft has already taken this approach with Surface and Xbox. And they're actively putting blocks up to their biggest competitors, which all about locking-in consumers to their ecosystem.
The the market leader in the "generic video streaming app everywhere" space (Netflix) is crowding out all competitors in this space unless they have exclusive content (HBO Go, HuluPlus, etc.) Apple maintains its market in the face of Netflix because of its wider content selection and the wide availability and affordability ($99) of its devices.
Amazon will be able to compete well here (this FireTV looks like a good offering) but we haven't seen what this year's AppleTV has in store, so it's not a slam dunk.
Because Amazon and Apple compete even more directly than Netflix and Apple do. If there was an Amazon app in Apple TV, nobody would buy iTMS content. (iTMS content is of higher technical quality, but less discoverable).
The way Amazon has tried to edge itself in is by supplying custom content, both in TV and games. Netflix has kept its edge with content, HBO has kept it's edge with content. Whether you like Amazon's content is up for debate, but what's not up for debate is Apple is behind in this regard.
This is why Apple worked with Netflix, HBO, etc to get apps on the Apple TV even before the TVOS was ready.
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