Amazon’s Apple TV+ Deal: A Piece of Its Expanding Streaming Strategy
Amazon’s streaming service, often seen as a financial loss to support its broader e-commerce ambitions, is evolving into a self-contained marketplace. The recent agreement to offer Apple TV+ subscriptions via Prime Video Channels marks another step in the largest online retailer and technology provider’s strategy to become, as CEO Andy Jassy once said: “The center of the entertainment universe”.
Bringing Apple’s TV channel into its ecosystem strengthens Amazon’s position in the streaming aggregation space, moving it closer to its competitors. While Netflix, Disney, and Peacock remain outside of its reach, the platform now hosts almost every major U.S.-based streaming service, giving it an edge over other Big Tech players. “Given Cupertino’s company contentious history with Google, I’d be very surprised to see Apple TV+ aggregated through YouTube, though it’s clear that almost anything goes in the current streaming market” an observer noted.
Even though Verizon’s +play platform includes more streaming services like Netflix and Disney+, Amazon’s user base is much larger, offering a clear advantage. Verizon’s offering is only available to its mobile and internet subscribers, while the internet-based business venture founded by Jeff Bezos’s Prime membership has a massive global reach, with more than 200 million monthly viewers on Prime Video as of April 2024. The addition of Apple TV+ to its channels, while beneficial for Amazon, is unlikely to reshape the streaming industry. This collaboration probably won’t generate a massive spike in subscribers draw a significant number of new viewers to the streaming giant. Data from analytics firm Antenna shows that Bezos’ venture is still trailing Steve Jobs’ company in aggregating subscriptions for major streaming platforms. As of Q2 2024, Apple accounted for 15% of SVOD subscriptions in the United States, while Amazon had just 9%.
Where the multinational technology company founded in the garage of Bezos’ rented home in Bellevue, Seattle, on July 16, 1995 excels, however, is in aggregating niche or “specialty” streaming services. Prime Video Channels captured 58% of U.S. subscriptions to specialty platforms like BritBox and Crunchyroll by Q2 2024, while Apple trailed at 11%. This highlights Amazon’s ability to attract consumers to lesser-known services, enhancing its status in the increasingly competitive streaming space.
This focus on aggregation is becoming a cornerstone of its streaming strategy. Although Prime Video is widely regarded as a loss leader for the company, Amazon is capitalizing on its marketplace strength by earning a portion of subscription fees from streaming partners—reportedly between 30% and 50%. While video content alone may not be a huge profit driver, Amazon’s expertise in selling, even in the entertainment space, positions it to remain a dominant player in the industry.
Source: Variety VIP
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Amazon’s streaming service, often seen as a financial loss to support its broader e-commerce ambitions, is evolving into a self-contained marketplace. The recent agreement to offer Apple TV+ subscriptions via Prime Video Channels marks another step in the largest online retailer and technology provider’s strategy to become, as CEO Andy Jassy once said: “The center of the entertainment universe”.
Bringing Apple’s TV channel into its ecosystem strengthens Amazon’s position in the streaming aggregation space, moving it closer to its competitors. While Netflix, Disney, and Peacock remain outside of its reach, the platform now hosts almost every major U.S.-based streaming service, giving it an edge over other Big Tech players. “Given Cupertino’s company contentious history with Google, I’d be very surprised to see Apple TV+ aggregated through YouTube, though it’s clear that almost anything goes in the current streaming market” an observer noted.
Even though Verizon’s +play platform includes more streaming services like Netflix and Disney+, Amazon’s user base is much larger, offering a clear advantage. Verizon’s offering is only available to its mobile and internet subscribers, while the internet-based business venture founded by Jeff Bezos’s Prime membership has a massive global reach, with more than 200 million monthly viewers on Prime Video as of April 2024. The addition of Apple TV+ to its channels, while beneficial for Amazon, is unlikely to reshape the streaming industry. This collaboration probably won’t generate a massive spike in subscribers draw a significant number of new viewers to the streaming giant. Data from analytics firm Antenna shows that Bezos’ venture is still trailing Steve Jobs’ company in aggregating subscriptions for major streaming platforms. As of Q2 2024, Apple accounted for 15% of SVOD subscriptions in the United States, while Amazon had just 9%.
Where the multinational technology company founded in the garage of Bezos’ rented home in Bellevue, Seattle, on July 16, 1995 excels, however, is in aggregating niche or “specialty” streaming services. Prime Video Channels captured 58% of U.S. subscriptions to specialty platforms like BritBox and Crunchyroll by Q2 2024, while Apple trailed at 11%. This highlights Amazon’s ability to attract consumers to lesser-known services, enhancing its status in the increasingly competitive streaming space.
This focus on aggregation is becoming a cornerstone of its streaming strategy. Although Prime Video is widely regarded as a loss leader for the company, Amazon is capitalizing on its marketplace strength by earning a portion of subscription fees from streaming partners—reportedly between 30% and 50%. While video content alone may not be a huge profit driver, Amazon’s expertise in selling, even in the entertainment space, positions it to remain a dominant player in the industry.
Source: Variety VIP
Share:
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