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

iOS 26

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
ios 18 to ios 26 upgrade

Apple Pushes iPhone Users Still on iOS 18 to Upgrade to iOS 26

Tuesday December 2, 2025 11:09 am PST by
Apple is encouraging iPhone users who are still running iOS 18 to upgrade to iOS 26 by making the iOS 26 software upgrade option more prominent. Since iOS 26 launched in September, it has been displayed as an optional upgrade at the bottom of the Software Update interface in the Settings app. iOS 18 has been the default operating system option, and users running iOS 18 have seen iOS 18...
iOS 26

Apple Seeds iOS 26.2 and iPadOS 26.2 Release Candidates to Developers and Public Beta Testers

Wednesday December 3, 2025 10:33 am PST by
Apple today seeded the release candidate versions of upcoming iOS 26.2 and iPadOS 26.2 updates to developers and public beta testers, with the software coming two weeks after Apple seeded the third betas. The release candidates represent the final versions of iOS 26.2 and iPadOS 26.2 that will be provided to the public if no further bugs are found during this final week of testing....
Photos App Icon Liquid Glass

John Gruber Shares Scathing Commentary About Apple's Departing Software Design Chief

Thursday December 4, 2025 9:30 am PST by
In a statement shared with Bloomberg on Wednesday, Apple confirmed that its software design chief Alan Dye will be leaving. Apple said Dye will be succeeded by Stephen Lemay, who has been a software designer at the company since 1999. Meta CEO Mark Zuckerberg announced that Dye will lead a new creative studio within the company's AR/VR division Reality Labs. On his blog Daring Fireball,...
Intel Inside iPhone Feature

Apple's Return to Intel Rumored to Extend to iPhone

Friday December 5, 2025 10:08 am PST by
Intel is expected to begin supplying some Mac and iPad chips in a few years, and the latest rumor claims the partnership might extend to the iPhone. In a research note with investment firm GF Securities this week, obtained by MacRumors, analyst Jeff Pu said he and his colleagues "now expect" Intel to reach a supply deal with Apple for at least some non-pro iPhone chips starting in 2028....
iOS 26

When Will Apple Release iOS 26.2?

Monday December 1, 2025 4:37 pm PST by
We're getting closer to the launch of the final major iOS update of the year, with Apple set to release iOS 26.2 in December. We've had three betas so far and are expecting a fourth beta or a release candidate this week, so a launch could follow as soon as next week. Past Launch Dates Apple's past iOS x.2 updates from the last few years have all happened right around the middle of the...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...
ive and altman

Jony Ive's OpenAI Device Barred From Using 'io' Name

Friday December 5, 2025 6:22 am PST by
A U.S. appeals court has upheld a temporary restraining order that prevents OpenAI and Jony Ive's new hardware venture from using the name "io" for products similar to those planned by AI audio startup iyO, Bloomberg Law reports. iyO sued OpenAI earlier this year after the latter announced its partnership with Ive's new firm, arguing that OpenAI's planned "io" branding was too close to its...
iphone air camera

iPhone Air's Resale Value Has Dropped Dramatically, Data Shows

Thursday December 4, 2025 5:27 am PST by
The iPhone Air has recorded the steepest early resale value drop of any iPhone model in years, with new data showing that several configurations have lost almost 50% of their value within ten weeks of launch. According to a ten-week analysis published by SellCell, Apple's latest lineup is showing a pronounced split in resale performance between the iPhone 17 models and the iPhone Air....
iPhone 17 Pro Cosmic Orange

iPhone 17 Pro Lost a Camera Feature Pro Models Have Had Since 2020

Thursday December 4, 2025 5:18 am PST by
iPhone 17 Pro models, it turns out, can't take photos in Night mode when Portrait mode is selected in the Camera app – a capability that's been available on Apple's Pro devices since the iPhone 12 Pro in 2020. If you're an iPhone 17 Pro or iPhone 17 Pro Max owner, try it for yourself: Open the Camera app with Photo selected in the carousel, then cover the rear lenses with your hand to...

Top Rated Comments

PaulpBenitti Avatar
70 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
70 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
70 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
70 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
70 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
70 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)