Apple Offered to Halve App Store Fee to Get Amazon Prime Video on iOS and Apple TV

Apple offered Amazon lower App Store fees to convince it to launch its Prime Video app on the ‌App Store‌ and Apple TV, documents published by the U.S. antitrust subcommittee have revealed.

According to email correspondence between Apple's services chief Eddy Cue and Amazon CEO Jeff Bezos, Apple struck a deal to bring Amazon Prime Video into the ‌App Store‌ by agreeing to take a 15% revenue share of subscriptions signed-up through the app. Apple usually takes a 30% share of all ‌App Store‌ subscription revenue, dropping to 15% only if the subscription continues for a second year.

eddy cue bezos prime video email

Image credit: Mark Gurman

In 2016, when the meeting took place, Amazon Prime Video wasn't available on ‌Apple TV‌, which competes directly with Amazon's Fire TV. At the time, Bezos admitted that Amazon was holding out for "acceptable business terms" from Apple to include its service on Apple's set-top box. It's unclear if the reduced subscriptions cut was part of the final terms of the agreement.

According to the email, Apple also agreed to take a 15% share of third-party Amazon Channels sold through the app if the subscriber used Apple payment processing, agreed to support integration with Siri and pipe in Prime Video content to its TV app for iOS, and agreed to include Prime Video results in ‌Siri‌ and Spotlight searches. A year after the email was sent, Amazon Prime Video launched on ‌Apple TV‌.

Other documents shared by the committee also reveal correspondence between Apple and Amazon regarding the 2018 deal for Apple to officially sell devices on Amazon's website. Bloomberg notes that the documents show Amazon expected to bring in $3.2 billion from the deal in the first year, including $1.1 billion from iPhone sales.

The reduced ‌App Store‌ fees for Amazon's Prime Video app are actually part of a longstanding policy run by Apple to provide better fees for subscription-based streaming video apps.

However, the antitrust subcommittee interpreted the deal as representing preferential treatment given to Amazon and that Apple was not treating its developers equally when it came to providing access to its ‌App Store‌ and other platforms. "That is not correct," Cook said on Wednesday when asked by the subcommittee if some developers are treated differently. "We treat every developer the same."

Popular Stories

maxresdefault

Where's the New Apple TV?

Monday December 22, 2025 11:30 am PST by
Apple hasn't updated the Apple TV 4K since 2022, and 2025 was supposed to be the year that we got a refresh. There were rumors suggesting Apple would release the new Apple TV before the end of 2025, but it looks like that's not going to happen now. Subscribe to the MacRumors YouTube channel for more videos. Bloomberg's Mark Gurman said several times across 2024 and 2025 that Apple would...
apple intelligence black

Report: Apple's AI Strategy Could Finally Pay Off in 2026

Tuesday December 30, 2025 9:01 am PST by
Apple's restrained artificial intelligence strategy may pay off in 2026 amid the arrival of a revamped Siri and concerns around the AI market "bubble" bursting, The Information argues. The speculative report notes that Apple has taken a restrained approach with AI innovations compared with peers such as OpenAI, Google, and Meta, which are investing hundreds of billions of dollars in data...
apple fitness 2026 1

Apple Teases 'Something Big' Coming Soon to Apple Fitness+

Tuesday December 30, 2025 2:11 pm PST by
The Apple Fitness+ Instagram account today teased that the service has "big plans" for 2026. In a video, several Apple Fitness+ trainers are shown holding up newspapers with headlines related to Apple Fitness+. What's Apple Fitness+ Planning for the New Year? Something Big is Coming to Apple Fitness+ The Countdown Begins. Apple Fitness+ 2026 is Almost Here 2026 Plans Still Under ...
iPhone Top Left Hole Punch Face ID Feature Purple

iPhone 18 Pro Launching Next Year With These 12 New Features

Tuesday December 23, 2025 8:36 am PST by
While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another nine months, there are already plenty of rumors about the devices. Below, we have recapped 12 features rumored for the iPhone 18 Pro models. The same overall design is expected, with 6.3-inch and 6.9-inch display sizes, and a "plateau" housing three rear cameras Under-screen Face ID Front camera in...
maxresdefault

Hands-On With a Rough iPhone Fold Mockup

Monday December 29, 2025 10:55 am PST by
Apple is rumored to be introducing a foldable iPhone in September 2026, and since it will bring the biggest form factor change since the iPhone was introduced in 2007, curiosity about the design is high. A 3D designer created an iPhone Fold design based on rumors, and we printed it out to see how it compares to Apple's current iPhones. Subscribe to the MacRumors YouTube channel for more ...
iphone 17 pro dark blue 1

iPhone 17 Pro and Pro Max Users Report Static Speaker Noise While Charging

Tuesday December 30, 2025 10:39 am PST by
iPhone 17 Pro and Pro Max owners are having trouble with the speakers of their devices, and have complained about a static or hissing noise that occurs when the iPhone is charging. There are multiple discussions about the issue on Reddit, the MacRumors forums, and Apple's Support Community, where affected users say there is a noticeable static noise "like an old radio." Some people report...
iOS 26

iOS 26.2 Adds These 8 New Features to Your iPhone

Monday December 22, 2025 8:47 am PST by
Earlier this month, Apple released iOS 26.2, following more than a month of beta testing. It is a big update, with many new features and changes for iPhones. iOS 26.2 adds a Liquid Glass slider for the Lock Screen's clock, offline lyrics in Apple Music, and more. Below, we have highlighted a total of eight new features. Liquid Glass Slider on Lock Screen A new slider in the Lock...
airpods color prototypes

Apple Tested AirPods in Bright Colors

Saturday December 27, 2025 6:06 am PST by
Apple reportedly tested a version of the first-generation AirPods with bright, iPhone 5c-like colored charging cases. The images, shared by the Apple leaker and prototype collector known as "Kosutami," claim to show first-generation AirPods prototypes with pink and yellow exterior casings. The interior of the charging case and the earbuds themselves remain white. They seem close to some...

Top Rated Comments

PaulpBenitti Avatar
71 months ago
It is quite the conundrum isn't it?

On the one hand it's just a normal deal being made between 2 businesses.

On the other hand, its anti-competitive behavior being engaged in by 2 monster companies.

It is both, at the same time. There is nothing wrong with it, and there is everything wrong with it. It is bizarre how normal business is not acceptable anymore when you become too big, but that's how it is.
Score: 32 Votes (Like | Disagree)
Infinite Vortex Avatar
71 months ago
And who covers that 15% offset that Amazon get (and I'm sure others)… the small developer that doesn't get a break where the rules are followed in an unforgiving, seemingly mean spirited, way. And at the end of the day its the consumer that is the one that always pays for it all!
Score: 22 Votes (Like | Disagree)
HylianKnight Avatar
71 months ago
I feel like a lot of people missed this short blurb in the article about Apple fee policy for subscription-based video apps...

“The reduced ‌App Store‌ fees for Amazon's Prime Video app are actually part of a longstanding policy ('https://www.macrumors.com/2016/11/16/apple-halving-subscription-video-fees/') run by Apple to provide better fees for subscription-based streaming video apps.”

It was easy to miss, and probably should have been mentioned a bit sooner.
Score: 19 Votes (Like | Disagree)
spook Avatar
71 months ago
pretty standard stuff here whats the big deal.

Builders merchants, if a builder comes if and buys more bricks then anyone else he gets a bigger discount then anyone else, same all over.
Score: 16 Votes (Like | Disagree)
jayducharme Avatar
71 months ago
This seems like a damned-if-you-do-damned-if-you-don't situation. If Apple hadn't allowed Amazon into their ecosystem, Apple would have been charged with anti-competitive practices. But Apple worked out a deal, brought Amazon on board and allowed customers more choices, and they're accused of being anti-competitive.
Score: 12 Votes (Like | Disagree)
Rogifan Avatar
71 months ago
This is not surprising but it does show Tim Cook is lying when he says all developers are treated the same.
Score: 10 Votes (Like | Disagree)