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Apple lower its App Store fee from Amazon by half to get the Prime Video app on iOS and Apple TV units, paperwork launched as a part of the continuing US Congressional antitrust hearings confirmed. According to the emails, Apple agreed to take solely 15 % of income on Amazon Prime Video subscriptions by means of the app, as a substitute of the 30 % income it expenses all builders. During the listening to, CEO Tim Cook asserted that Apple applies “rules to all developers evenly.”
Bloomberg reported that Amazon CEO Jeff Bezos and Apple Senior Vice President Eddy Cue directly negotiated this deal. Based on Cue’s emails, Apple agreed on taking a 15 percent cut from revenue earned through the Prime Video app on the App Store, and said it won’t take any revenue from customers who sign-up elsewhere or have already subscribed before installing the Prime Video app through the App Store.
Now we know how Apple convinced Amazon to finally put Prime Video on the App Store in 2017: Apple agreed to only take 15% of revenue from Prime Video subscriptions made on iOS, versus the 30% they were taking from others. https://t.co/vscPLYKFe2 pic.twitter.com/75e46VGiai
— Mark Gurman (@markgurman) July 29, 2020
Amazon Prime Video Finally Comes to Apple TV
For all other developers, Apple generally takes a 30 percent cut on app subscriptions made through the platform and then the revenue cut drops to 15 percent after the first year of listing is over. The committee criticised Apple for having too much control over app developers and that rules and fees have not been even for all developers. Apple was accused of blunting the competition, and allegations of not all apps being treated equally on the App Store were made.
However, Cook refused all of these allegations, and replied, “That is not correct. We treat every developer the same.” Documents launched by the committee nonetheless additionally confirmed conversations between Apple and Amazon concerning the 2018 deal for Apple to formally promote its merchandise on the Amazon web site. Amazon was reported to rake in $3.2 billion from the deal, together with $1.1 billion simply from iPhone gross sales.
Earlier this yr, when Amazon Prime Video started permitting in-app leases and purchases on iOS and Apple TV units, it was reported that Apple was allowing Amazon to process payments using its own stored payment methods, something it also allowed Altice One and Canal+ to do.
In a statement at the time, Apple had said, “On qualifying premium video leisure apps equivalent to Prime Video, Atlice One and Canal+, prospects have the choice to purchase or hire films and TV exhibits utilizing the cost technique tied to their present video subscription.”
WWDC 2020 had a lot of exciting announcements from Apple, but which are the best iOS 14 features for India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, obtain the episode, or simply hit the play button beneath.
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