Disney Announces That Disney+ and Hulu Will No Longer Support Subscriptions Through the Apple App Store
For years, the issue of Apple's App Store in-app purchase commission, which takes a cut of 15% to 30% from each transaction, has been a contentious topic. This fee is considered excessive by some developers, leading platforms like Netflix and Spotify to opt out of offering subscriptions through the App Store early on. Users can still download and use these apps on iPhones or iPads, but are required to subscribe through web browsers instead.
Joining this trend, Disney has now declared that its streaming services, Disney+ and Hulu, will cease to offer subscriptions via the App Store. This move could also be related to Disney's recent decision to raise the prices of its services in the United States starting October 17th: Disney+ packages will see a 2 increase, ad-supported Hulu subscriptions will also go up 2, and ad-free Hulu subscriptions by $1.
By directing the majority of its users to subscribe through the web rather than the App Store, Disney could save a significant amount in commission fees. This strategy is crucial for the company, given that the revenue from Disney+ and Hulu has been a persistent issue.
Existing App Store subscribers will retain their subscription rights until expiration, after which the subscriptions will not automatically renew. Instead, users will need to reactivate their subscriptions through the web or other methods.
This change also impacts Disney's collaboration with Apple, as ceasing in-app subscriptions disqualifies Disney+ and Hulu from Apple's video partnership program. Consequently, users may notice some changes in their user experience on Apple TV.