Jeff Bezos when questioned at Recode’s Code Conference as to why Amazon does not sell the Apple TV or Google Chromecast due to unacceptable business terms. The CEO said that Amazon sells plenty of competing products on Amazon, including Roku, Xbox One, and PS4, and that it wants its Prime Video player to be available on all such devices but with acceptable business terms.
With Google and Apple, Amazon somehow could not reach “acceptable business terms” for offering Prime Video player on the Apple TV and Google Chromecast, which is why it stopped selling the products altogether. Bezos was also pressed on whether the “acceptable business terms” is the 30 percent cut that Apple takes in in-app purchases and subscriptions or not, but he declined to answer that question.
The company’s reasoning behind not selling Apple TV and Chromecast is that consumers expect Prime Video player to be available on these devices as well, especially since they are purchasing it directly from Amazon. However, since that’s not the case, it can lead to confusion and disappointment for them. Based on this reasoning, the company stopped selling the Apple TV and Google Chromecast from October last year.
Amazon had earlier revealed that it is working on a dedicated Prime Video player for Apple TV that was due to be launched by the end of 2015, but due to unacceptable business terms, the app will now probably never make its way to the App Store.
[Via The Verge]