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Why is Amazon Video still missing from the Apple TV?

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A scene from "Transparent" on Amazon Video. Amazon

It's the most important app missing from the Apple TV.

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When Apple announced last fall that anyone could develop an app for the new Apple TV, the immediate expectation was that Amazon Video, Amazon's online video service, would finally arrive. 

We got even more hope about five months ago when an Amazon employee supposedly told a customer that the Amazon Video app was in the works and was expected to launch within weeks.

But it never happened.

Why not?

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In earlier models of the Apple TV, Apple had an unprecedented level of control over which apps appeared on the device, which left several big names out, notably Amazon. While the two companies haven't discussed it publicly, the overall assumption is that Amazon was hesitant to bring its video app to the Apple TV because it would have to give a share of its sales to Apple, as the App Store guidelines guidelines dictate. Apple takes a 30% cut of anything sold within apps, although there are reports that some companies like Hulu and HBO have negotiated lower rates.

Amazon Video works two ways: It has a Netflix-like, all-you-can-eat streaming product that's free if you're already an Amazon Prime member. (You can now pay $8.99 per month for just for the streaming service, but Prime is a better deal.) It also has a digital store that lets you buy or rent movies and TV shows, just like you can on iTunes.

To get around Apple's "30% rule," Amazon's apps on Apple devices don't let you buy digital products like Kindle books or videos. Instead, you have to buy them from Amazon.com and they appear on your Apple device after you log in. Amazon saves itself a lot of money this way, even though it's more annoying for the user.

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Apple CEO Tim Cook announcing the Apple TV App Store in 2015. AP

I've heard from people in the know that there's nothing in Apple's App Store guidelines that would prohibit Amazon from bringing Amazon Video to the new Apple TV. In theory, Amazon could bring Amazon Video to the Apple TV tomorrow, just like it already has on iPhone and iPad.

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So, what's going on? Here's some informed speculation.

There are a few likely hangups on Amazon's end: Amazon doesn't want to undermine its own streaming TV gadgets, the Fire TV and Fire Stick, by making an app for the Apple TV. However, that seems less likely to me since Amazon Video is already on Roku and video game consoles like the PlayStation 4.

The real problem is likely the 30% rule. Amazon probably wants to either negotiate that down like other companies have or find a better way for you to buy video content within the app instead of having to go to Amazon.com first. An Amazon spokesperson did not respond to a request for comment. 

Until all that shakes out, Apple TV owners still have an option: The iOS version of the Amazon Video app lets you watch content on Apple TV using AirPlay. As long as your iPhone or iPad is connected to the same network as your Apple TV, you're good to go. I've used this workaround many times, and it works just as well as it would as a regular Apple TV app.

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