Apple TV+ coming to Amazon Prime Video
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A new deal calls for Apple TV+ to be offered via Amazon Prime Video’s channels feature.
The two tech and media giants announced the surprise agreement Oct. 9, 2024. It will become effective later in October.
Amazon already offers streamers including Max, Paramount+, AMC+ and Starz as part of the “channels” option, which lets subscribers pay an additional monthly fee for each service they want to add to their Prime Video account.
Apple TV+ will be priced at $9.99 a month via Amazon, the same price when buying directly from Apple. It’s not clear if any revenue-sharing agreements have been struck between the two companies, though it would not be surprising if that is involved.
In many ways, the deal could prove a substantial boon to Apple, making it possible to put its brand and subscription option in front of millions of Amazon Prime Video users, which, according to estimates, is around 10 times the number as what Apple TV+ has (that comparison can be a bit tricky because Amazon estimates typically include all members of its Prime program, though it’s not clear how many of them use the streaming portion of their membership).
Amazon, meanwhile, could benefit from any revenue share it gets from signups generated through its platform. It’s also possible Apple could pay extra to promote its service within Prime Video.
In addition, adding more services with compelling content also helps solidify the service as a destination for streaming entertainment no matter who produces the content.
Selling “add on” style subscriptions to streamers alongside other services has become increasingly popular. Verizon, for example, offers customers multiple options to add streaming services to their account, sometimes at slightly discounted rates. Many of the deals struck by third-party companies do not appear to have exclusivity clauses, meaning that competing streamers are often sold right alongside each other.
For the consumer, billing is typically consolidated, which can be an appeal, while the companies benefit from recurring revenue splits as well as the potential for increased customer retention as the value proposition of their single, bundled fee increases.
That said, the model also is, in many ways, essentially re-creating the notion of cable TV subscriptions, albeit ones that typically give consumers the ability to pick and choose streamers at will. Under linear cable and satellite plans, consumers were given a set number of channels for a certain price, sometimes bundled with internet, home phone or wireless services. Additional premium channels could often be added for an extra fee.
Under the new bundling model, Verizon and Amazon are essentially stepping into the role of the “cable company” and offering users the flexibility to choose from the services it offers, essentially becoming the “channels.”
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tags
Amazon Prime Video, AMC Plus, Apple TV Plus, OTT, streaming
categories
Broadcast Business News, Broadcast Industry News, Streaming