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Software The Almighty Buck Apple

Apple Halved App Store Fee To Get Amazon Prime Video On Devices (bloomberg.com) 11

An anonymous reader quotes a report from Bloomberg: Apple agreed in 2016 to halve its App Store fee for Amazon as part of a deal to put the e-commerce giant's Prime Video app on Apple's mobile devices and TV set-top box. Eddy Cue, an Apple senior vice president, and Amazon Chief Executive Officer Jeff Bezos negotiated directly on the deal, according to emails released Wednesday as part of a congressional hearing on anticompetitive behavior. The companies agreed to a 15% revenue share for customers who signed up through the app and no revenue share for users who already subscribed via Amazon or elsewhere, the emails showed.

The deal, announced in December 2017, also allowed Amazon's video service to integrate with Apple's voice-activated digital assistant, Siri, and the iPhone maker's TV app, which launched in 2016. In addition, the agreement gave Apple a 15% cut of subscriptions to Amazon Prime partners like Showtime for users who signed up originally through Apple. Apple generally receives a 30% cut for the first year of an app's subscriptions made through the platform. That fee drops to 15% after the first year. The agreement with Amazon is similar to a program Apple announced earlier this year letting select developers avoid the 30% fee in exchange for integrating with certain features. Amazon is part of that program.
The report also reveals that Apple once considered taking a 40 percent cut from some subscription apps, according to documents shared today by the House Judiciary Committee.
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Apple Halved App Store Fee To Get Amazon Prime Video On Devices

Comments Filter:
  • by cyclonus5150 ( 7092617 ) on Thursday July 30, 2020 @04:06PM (#60349155)
    In spring 2015, Apple reduced it's cut of streaming video content provider sub revenue to 15% for new subs gained through Apple TV. This is the same deal enjoyed by Hulu, HBO, MLB.tv and others. These stories are all conflating developers with content providers, which are two different types of partnership with Apple.
  • Apple TV's remote sucks so bad I basically took my brand new Apple TV and put it in the closet to be sold at my next yard sale.

    Worst user experience ever.

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