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Streaming services Disney+ and Hulu have removed the option of subscribing in-app to avoid a hefty Apple commission.
Historically, Apple has required streaming platforms with apps available on the App Store to offer a way to subscribe directly through the app. This earns the tech giant a 15-30% commission on all sign-ups – something Disney+ and Hulu are now pushing back on, now that it’s no longer a requirement.
The two streaming services are joining the ranks of apps ditching Apple’s app-based purchases, with both of them removing the option to subscribe to their services in the iOS apps. As confirmed on both of the companies’ websites, new users need to create an account via an external website.
“New and returning subscribers are no longer able to sign up and pay for Disney+ through Apple,” reads the Disney+ website. “However, you can see all plans and sign up directly on DisneyPlus.com, and can still watch Disney+ content on supported Apple devices. These changes do not impact existing Apple-billed subscribers.”
There’s virtually identical text on the Hulu help section too, confirming the change for both service providers.
The decision to remove app-based purchases will likely save both Disney and Hulu money on customer acquisition, no longer needing to pass on money from new customers to Apple. This is one of many steps from Disney trying to boost income from the streaming service, after recently cracking down on shared subscriptions.
How has Apple responded to move away from in-app subscriptions?
An Apple spokesperson told 9to5Mac that Apple believes the App Store has helped Disney reach a wider audience with its apps, while both Disney+ and Hulu also benefited from Apple’s Video Partner Program. The program allowed streaming platforms to promote their content through Universal Search and Siri, as well as reducing its commission from 30% to 15%.
Apple claims that using the App Store’s purchase system is still the best way to let users buy digital goods and services, despite it not being a requirement anymore. Specifically, Apple’s system supports transactions in many countries and currencies and has its own anti-fraud mechanism.
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