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

iphone 16 display

iPhone 17's Scratch Resistant Anti-Reflective Display Coating Canceled

Monday April 28, 2025 12:48 pm PDT by
Apple may have canceled the super scratch resistant anti-reflective display coating that it planned to use for the iPhone 17 Pro models, according to a source with reliable information that spoke to MacRumors. Last spring, Weibo leaker Instant Digital suggested Apple was working on a new anti-reflective display layer that was more scratch resistant than the Ceramic Shield. We haven't heard...
apple watch ultra yellow

What's Next for the Apple Watch Ultra 3 and Apple Watch SE 3

Friday April 25, 2025 2:44 pm PDT by
This week marks the 10th anniversary of the Apple Watch, which launched on April 24, 2015. Yesterday, we recapped features rumored for the Apple Watch Series 11, but since 2015, the Apple Watch has also branched out into the Apple Watch Ultra and the Apple Watch SE, so we thought we'd take a look at what's next for those product lines, too. 2025 Apple Watch Ultra 3 Apple didn't update the...
iPhone 17 Air Pastel Feature

iPhone 17 Reaches Key Milestone Ahead of Mass Production

Monday April 28, 2025 8:44 am PDT by
Apple has completed Engineering Validation Testing (EVT) for at least one iPhone 17 model, according to a paywalled preview of an upcoming DigiTimes report. iPhone 17 Air mockup based on rumored design The EVT stage involves Apple testing iPhone 17 prototypes to ensure the hardware works as expected. There are still DVT (Design Validation Test) and PVT (Production Validation Test) stages to...
Beyond iPhone 13 Better Blue

20th Anniversary iPhone Likely to Be Made in China Due to 'Extraordinarily Complex' Design

Monday April 28, 2025 4:29 am PDT by
Apple will likely manufacture its 20th anniversary iPhone models in China, despite broader efforts to shift production to India, according to Bloomberg's Mark Gurman. In 2027, Apple is planning a "major shake-up" for the iPhone lineup to mark two decades since the original model launched. Gurman's previous reporting indicates the company will introduce a foldable iPhone alongside a "bold"...
iPhone 17 Air Pastel Feature

iPhone 17 Air Launching Later This Year With These 16 New Features

Thursday April 24, 2025 8:24 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the iPhone 17 Air sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iPhone 17 Pro on Desk Feature

All iPhone 17 Models Again Rumored to Feature 12GB of RAM

Tuesday April 29, 2025 3:36 am PDT by
All upcoming iPhone 17 models will come equipped with 12GB of RAM to support Apple Intelligence, according to the Weibo-based leaker Digital Chat Station. The claim from the Chinese leaker, who has sources within Apple's supply chain, comes a few days after industry analyst Ming-Chi Kuo said that the iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max will all be equipped with 12GB of RAM. ...

Top Rated Comments

PaulpBenitti Avatar
62 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
62 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
62 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
62 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
62 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
62 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)