Amazon and Apple – the two technology giant – are increasingly competing for the time of customers. According to people familiar with the two companies, both the Cupertino-based smartphone maker and the online retailing giant are close to an agreement to bring an Amazon video app to Apple TV set-top box of the Silicon Valley based iPhone maker.
Apple and Amazon could have reached a truce
The employees of the online retailer expect the application to show up on the hardware of the tech giant in the third quarter of the present year. This move by the two tech giants would enable the Amazon Prime Video subscribers to watch movies and TV shows easily from the service using Apple TV.
The subscribers of the online retailer – for the past few years – have been able to watch their shows on Apple TV only by using the Airplay system of the U.S.-based tech giant. The Airplay system, which in comparison to Amazon’s Video app is more cumbersome and complex in use – involves connecting another Apple product, like an iPad, a Mac or an iPhone, to an Apple TV by using a Wi-Fi connection.
We are still not certain whether the rumored deal between the two tech companies means that they have settled their other disputes, which involve their rival video ambitions.
News site Recode notes, “Amazon, for instance, stopped selling Apple TV boxes on its online store in the fall of 2015. And while an Amazon video app exists for Apple iOS devices, it’s a crippled version of the app, one that doesn’t allow users to buy or rent individual programs without visiting Amazon first.”
Amazon CEO tells why the platform stopped selling Apple TVs
Amazon and Apple want to be the main sources of entertainment in the homes of their customers, and the two companies – in several cases – provide products that compete directly with each other. Last year, Jeff Bezos, the chief executive officer of Amazon, did not go into detail about the dispute with the tech giant at the Code Conference and told the audience that private business discussions should remain private.
However, he did reveal some information about why the online retailer was not selling Apple TVs. He said that he did not want his customers to purchase a device which was not compatible with the video app of Amazon. The CEO said, “We want our player, our Prime Video player, to be on the device, and we want it to be on the device with acceptable business terms. And so, you can always get the player on the device; the question is can you do so with acceptable business terms. And if you can’t, then we don’t want to sell it to our customers, because they’re going to be buying it thinking they can watch Prime Video and then they’re going to be disappointed. And they’re going to return it.”
During the same Code Conference interview, Bezos said that they have been able to monitor the people who use Prime Video. He added that they renew the Prime memberships at higher rates and they convert from free trial at higher rates.