In what would have seemed an unlikely alliance a few years back at the height of the “streaming wars,” Apple will, starting later this month, start selling its Apple TV+ subscription video-on-demand service through Amazon Prime Video as a $9.99-a-month ad-on subscription.
The monthly price matches what Apple charges for its SVOD service as a stand-alone offering. Neither Apple nor Amazon disclosed the revenue split for the arrangement. It’s generally understood that Amazon takes 5% - 50% of revenue for services that are signed up for and billed for via its platform.
As it approaches its fifth birthday on Nov. 1, Apple TV+ has had some water-cooler moments with original-series hits like Ted Lasso. And its movies and TV shows garnered 72 Emmy nominations this year. Apple routinely boasts about the collective subscriber power of its combined subscription service offering, a grouping which also includes Apple Music and Apple Arcade.
But the Cupertino, Calif.-based global technology giant has yet to disclose a signup figure for Apple TV+. Data published by MoffettNathanson and HarrisX back in July suggested only around 11% of U.S. households include one or more individuals who use Apple TV+.
For its part, Amazon Prime Video has proven to be a powerful driver of subscriber signups for third-party subscription services. Last month, in fact, research company Antenna published findings suggesting that 56% of signups for specialty SVODs come via Amazon Channels on Prime Video.
Notably, the arrangement doesn’t include a quid pro quo — at least at this point, there is no announced plan for Apple to start selling Amazon Prime Video via its Apple TV platform.
“Prime Video is a first-stop entertainment destination offering a wide selection of premium programming including Amazon MGM Studios Originals, live sports, licensed movies and series, the industry’s largest catalog of titles to rent or buy, and over 100 additional streaming subscriptions,” said Mike Hopkins, senior VP and head of Prime Video and Amazon MGM Studios, in a statement.
Added aid Eddy Cue, Apple’s senior VP of services: “We want to make Apple TV+ and its award-winning library of series and films from the world’s greatest storytellers available to as many viewers as possible. We’re thrilled that Prime Video will now offer Apple TV+, giving viewers an incredible breadth of viewing options.”