In a move to maximize streaming revenue, Disney has stopped allowing new and returning customers to subscribe to Disney+ and Hulu through Apple’s App Store. This change, noticed over the weekend and confirmed on the Disney+ and Hulu websites, means Disney avoids paying Apple’s hefty in-app purchase fees.
While existing subscribers who signed up through Apple remain unaffected, anyone looking to start or restart a Disney+ or Hulu subscription will now need to do so directly through the Disney+ and Hulu websites. Users can still watch content on Apple devices by logging into their existing accounts on the iOS apps this was first reported by MacRumors.
Apple typically takes a 15% to 30% cut of all in-app purchases, including recurring subscriptions. By directing users to its own websites for sign-ups, Disney bypasses these fees, potentially saving millions of dollars annually. This strategy aligns with Disney’s recent efforts to boost streaming profitability, including price increases for both Disney+ and Hulu that took effect on October 17th and a crackdown on password sharing.
This decision has implications for how Disney+ and Hulu integrate with Apple’s ecosystem. By removing in-app purchases, the streaming services are no longer eligible for Apple’s Video Partner Program, which offers benefits like Siri integration, AirPlay support, universal search, and zero sign-on. Subscribers may notice a difference in how these services function within tvOS and the Apple TV app.
Disney’s move is the latest development in the ongoing tension between app developers and Apple over App Store fees. Companies like Netflix and Spotify have also implemented strategies to avoid these fees, often by directing users to their websites for subscriptions. This trend reflects a growing desire among content providers to retain more control over their revenue streams and reduce their reliance on third-party platforms.