It seems that Amazon and Apple have settled their rivalry for the time being as Apple is planning to announce Amazon Prime Video is going to be available for Apple TV at the yearly developer conference, WWDC. The application is supposed to be available for users later in the summer even though the date has not yet been locked down quite yet.
At the same time, Amazon is going to start selling the Apple TV set-top boxes again after being banned two years ago. This confirms a report earlier claiming that both Apple and Amazon had come to an agreement to the benefit of their media strategies for streaming.
Amazon Prime members that own an Apple TV have another reason why they should renew their membership, while Apple gets to be able to put Apple TV back on Amazon’s retail platform.
Big Win for Apple and Amazon Prime Video
Amazon Prime Video has been missing for some time from Apple TV products though there is a version available for iPad and iPhone. The current rivals like Hulu and Netflix have long been streaming videos on Apple TV considering the recent launch. This happens to be one of the big wins for Apple.
In 2015, Amazon banned the use of Apple TV from its store considering it did not have a Prime Video application. During the time, the CEO Jeff Bezos claimed Apple did not come available with acceptable terms for them to develop a tvOS app. He stated, “When we sell those devices, we want our player — our Prime Video player — to be on the device, and we want it to be on the device with acceptable business terms.”
It is probable that Bezos and the Amazon found it completely unacceptable that Apple takes a 30 percent cut from the Prime memberships via the Apple store. The Amazon Prime members that have Apple TV had no choice but to utilize a workaround which involved the Amazon Prime Video iOS app in order to watch Amazon originals. Now this is serviceable, but when you consider the competition such as Netflix, HBO, and Hulu which all have companion apps that are right on Apple TV’s home screen, it is not that hard to discard Amazon Prime Video.
The Nature of the Agreement
It is also good news for the consumers in a broader sense. The cutting over the internet concept has been useful for those who do not want to pay for expensive cable bundles for hundreds of channels. There are some discrepancies though concerning the availability of certain services and the contingent for some deals and devices.
Apple TV’s lack of an app for Amazon was one of the big issues here. The terms that the companies agreed to for the partnership may never become public record, and it may stay that way indefinitely. One potential point between the firms which had been theorized is the cut that Apple takes from the revenue which goes through Apple TV. They reportedly take at least 15 percent of the funds charged by the major subscription apps on Apple TV. Amazon could have possibly been able to negotiate for a lower percentage even considering leverages as a big player in the market.