
Phil Schiller, Apple’s senior vice president of worldwide marketing, has revealed changes coming to the Apple App Store that directly impact the likely reasons why Amazon Video is not available on the Apple TV. The specific change is a reduction in Apple’s cut of an app’s subscription revenue from 30% to 15%, after a customer has been subscribed to a service for over one year. Amazon hasn’t specifically said that the current 30% “Apple Tax” is the reason they haven’t released an Amazon Video app on the Apple TV, but it is widely speculated to be their main concern with the platform. Jeff Bezos, CEO of Amazon, did say last week that “we want it to be on the device with acceptable business terms,” when asked about Amazon Video on the Apple TV.
Under the new Apple App Store policy, Amazon would now keep 85% of most Prime membership fees from customers who signed up through an Amazon Video app on Apple devices. While Apple would still pocket 30% the first year and 15% each subsequent years, the new terms are a step in the right direction for Amazon, which might make them reconsider releasing an Amazon Video app for the Apple TV. Read more ›