Apple now lets some video streaming apps, like Amazon Prime Video, use their own payment methods for in-app purchases on Apple devices, avoiding Apple's 30% cut
Apple Inc. has relaxed a controversial policy that took a 30% cut of payments when video apps on its platform sold TV shows and movies.
BloombergMark Gurman
Context & Ripple Effects
This is the endpoint of a fee retreat Apple has been signaling since at least 2015, when it was reported to be weighing a smaller cut for video providers and Newsstand publishers (reducing the 30% take) — followed by the 2016 plan to halve the fee to 15% for streamers that integrated with the TV app (the 15% integration discount). The new arrangement goes further than any of those: instead of a discounted commission, Prime Video keeps its own payment rails entirely.
The Daring Fireball deep dives into the Apple–Amazon deal frame this as a bilateral bargain rather than an open policy change, which matters because it suggests Apple is trading App Store revenue for content availability around its TV ambitions — the same aggregation push behind its 2018 plan to sell third-party video subscriptions inside the TV app.
First-order effects
Amazon stops paying Apple's 30% commission on video purchases made inside Prime Video on Apple devices, directly lifting margin on every rental and sale processed through Amazon's own checkout.
Other video streaming apps that qualify under the relaxed policy gain the same exemption, while apps outside video keep paying the standard cut — creating a two-tier App Store economy.
Second-order effects
Non-video subscription developers (music, news, fitness) now have a visible precedent that the 30% rate is negotiable for large partners, pressuring Apple either to extend exemptions or defend the line publicly.
Google faces mirrored pressure on Android, where Amazon had already stripped in-app purchasing from its apps to dodge the Play Store fee — the Apple concession gives Amazon leverage to demand symmetric treatment elsewhere.
Third-order effects
If major platforms keep carving out bespoke payment terms for the biggest content owners, the flat App Store commission gives way to negotiated, category-by-category take rates — with small developers left on the published schedule and scale becoming the price of admission to better terms.
The trend: Platform commissions are shifting from uniform published rates to privately negotiated deals, as gatekeepers trade fee revenue for marquee content and distribution partnerships.
Apple says it has had an “established” program for “premium” video apps subscriptions, now including Amazon Prime, to let them use their own payment methods instead of in-app-purchase, which gives Apple a 30% cut. This program has been in use already with Altice One and Canal+
@chronic
Will Strafach on x
not a fan of different rules for different devs. though at least this is not as sketchy as when Apple did special entitlements for Uber, and then forgot about it for two years (https://www.newsweek.com/...). https://twitter.com/...
@bzamayo
Benjamin Mayo on x
Latest update: Amazon Prime Video app behaviour appears to be that it uses Amazon billing if you have an existing card on file with Amazon, otherwise it uses Apple In-App Purchases. https://9to5mac.com/...
@apollozac
Zac Hall on x
I replaced Apple TV with Fire TV Cube recently for built-in voice control and 4K YouTube since it has Apple's TV app anyway. You can't purchase iTunes movies and TV shows yet, but would be a good trade! https://twitter.com/...
@tigesavage
Tige Savage on x
More strategic than it appears on the surface: Apple breaks precedent and gives up App Store revenue for chance to drive AppleTV platform dominance https://www.bloomberg.com/...
@markgurman
Mark Gurman on x
This is apparently news to people who have been subscribing to apps that have supported it. Canal+ has been part of this since 2018, Altice in February. Regardless, this is positive news. https://www.bloomberg.com/... https://twitter.com/...
@timsweeneyepic
Tim Sweeney on x
Congratulations to Apple on their move towards opening up the iOS App Store to payment competition, and congratulations to Amazon for launching the first app to support developer-provided billing for digital goods on iOS! https://www.theverge.com/...
@kifleswing
Kif on x
It's true, you can now rent and purchase movies on Amazon Prime Video for iPhone using your card on file with Amazon. It's a small but important change. https://www.cnbc.com/...
@ballmatthew
Matthew Ball on x
This is really, really, really important. Amazon Prime Video now allows in-app rentals and purchases on the iPhone, iPad, and Apple TV https://www.theverge.com/... via @Verge
@jsnell
Jason Snell on x
I don't really understand why this is for video only but apparently that scotches my hopes that we'd see this in Kindle, Comixology, and Audible https://twitter.com/...
@tomwarren
Tom Warren on x
interesting timing for Apple here. Just as it faces antitrust complaints about its App Store policies https://twitter.com/...
@business
@business on x
Apple has relaxed a controversial policy that took a 30% cut of payments when video apps sold TV shows and movies on its platform https://www.bloomberg.com/...
@jonasdowney
Jonas Downey on x
Cool, I assume Amazon will be using this extra 30% proceeds to treat their warehouse workers better? https://www.theverge.com/...
@backlon
Dieter Bohn on x
I wonder if Fortnite counts as a premium subscription video entertainment provider. https://www.theverge.com/...
@backlon
Dieter Bohn on x
Must be nice to be a premium subscription video entertainment provider and be allowed to use your own payment system instead of Apple's. I am sure that distinction makes total sense to all developers and other app makers who offer services in other categories like music or apps
@pierce
David Pierce on x
This reads to me like a fascinating quid-pro-quo: Apple lets video providers sell stuff without giving Apple a cut, and in exchange those providers integrate all of Apple's video-related apps and services https://www.bloomberg.com/...
@dhh
@dhh on x
Apple, how about extending this privilege to the rest of us? Not just some special class of huge corporations. https://twitter.com/...
@somospostpc
Alex Barredo on x
So now there's the App Store Premium for Superduper Developers and the App Store for the chums Will EA, Rovio, and Tencent too stop playing by the same rules that smaller game devs have to abide? Troubling https://twitter.com/...
@alexeheath
Alex Heath on x
Paging Netflix, HBO, and everyone else: Apparently you're not considered premium (yet)! https://twitter.com/... https://twitter.com/...
@jeffjohnroberts
Jeff Roberts on x
So cash-rich Apple will cut Amazon a deal? But force news outlets and others hit by the crisis to keep forking over 30%. Do better @tim_cook https://twitter.com/...
@nickstatt
Nick Statt on x
Big move for Amazon: it now allows Prime Video in-app purchase son Apple devices, after years of kicking users to a browser to avoid the App Store fee. https://www.theverge.com/...
@bzamayo
Benjamin Mayo on x
What is going on here? Amazon not using In-App Purchase for this is unprecedented. https://9to5mac.com/...
@backlon
Dieter Bohn on x
Genuine surprise move! It's still dumb as hell that the Kindle app can't even reference the fact that some books are available for purchase elsewhere, much less include a buy button. But, progress: https://www.theverge.com/...