Did Apple just make an offer Amazon can’t refuse?

We may soon find out.

There’s a wonderful moment near the end of Walt Mossberg’s Q&A with Jeff Bezos at Code Conference 2016 where Nilay Patel, editor of The Verge, asks Amazon’s CEO a simple question.

“Why isn’t there a Prime Video app for the Apple TV?”

Bezos hems and haws. Says it’s complicated. Says private business discussions should stay private. Uses the phrase “acceptable business terms” twice.

“So you’re saying,” Patel says, “you don’t want to pay Apple’s 30% tax for Prime signups?”

That’s when Mossberg makes the gesture captured in the screen grab above: On the nose, Nilay. On the nose.

Well, the new App Store subscription pricing Phil Schiller revealed this week cuts that tax after the first year from 30% to 15%. Are those terms acceptable to Amazon? We may soon find out.

Below: The Bezos Q&A. Patel asks his question at the 1:14:40 mark.

7 Comments

  1. Tom Sidla said:

    I’m glad you picked up on this, Mr. Dewitt. It makes sense. I mean, the two companies have been in talks, and now this change.

    The iPad is THĒ best way to access Amazon, either shopping, or Prime video. The two companies don’t really compete. At least not in any important way. Co-development and co-operation would be great for both companies’ customers.

    It used seem like Google was a natural partner for Apple. Before Android, that is. Now it seems like Amazon a is nice fit. Apple has the best hardware interfaces to access Amazon’s services. Seems win win, to me.

    0
    June 10, 2016

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