Stratechery Apple, Amazon, and Common Enemies
Apr 7, 2020
The podcast dives into Amazon's recent app changes, revealing Apple’s shift in payment policies and in-app purchase fees. It explores the competitive dynamics between Apple and Amazon in the streaming realm, highlighting potential advantages for Apple. A new partnership brings Apple Music to Amazon Echo, showcasing the ongoing evolution of media consumption. The transformation of Netflix from DVD rentals to original programming is discussed, along with its sustainability in a competitive landscape, especially against Disney+'s strong ecosystem.
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Amazon's Win
- Amazon allowing purchases directly within the iOS app benefits them.
- This bypasses Apple's 30% cut of in-app digital content sales.
Apple's Quid Pro Quo
- Apple likely negotiated this deal in exchange for Amazon Prime Video integrating with the Apple TV app.
- This gives Apple more control over the user interface and potentially commoditizes video providers.
Distributor Advantage
- Both Apple and Amazon benefit from being distributors of video content rather than solely producers.
- This deal strengthens Apple's position as a distributor by improving the Apple TV app experience.