In a strategic move to increase revenue and control costs, Disney has ended the option for customers to sign up for Disney+ and Hulu subscriptions through Apple’s App Store. This change, which went into effect recently, means new and returning subscribers will need to sign up directly through the Disney+ and Hulu websites.
While existing subscribers who signed up through Apple’s in-app purchase system will remain unaffected for now, the move signifies a shift in Disney’s approach to its streaming services. By eliminating the need to pay Apple a commission on each subscription, Disney aims to boost its streaming revenue, especially in light of recent price increases for both Disney+ and Hulu.
Apple typically charges a 15 to 30 percent commission on digital purchases made through its App Store, including subscription services. By redirecting users to its own websites for sign-ups, Disney bypasses these fees, potentially saving a significant amount of money as its subscriber base grows.
This decision also means that Disney+ will no longer be part of Apple’s Video Partner Program. This program offers seamless integration with various Apple technologies, including Siri, AirPlay, Universal Search, and zero sign-on. Subscribers may notice a difference in how these streaming services interact with tvOS and the Apple TV app.
Disney’s move to circumvent Apple’s in-app purchase system reflects a growing trend among streaming providers. As competition intensifies and companies seek to maximize profits, controlling costs and exploring alternative subscription models are becoming increasingly important. It remains to be seen whether other streaming services will follow suit, but Disney’s decision could signal a broader shift in the industry.
