Disney+ and Hulu Reject Apple’s 15-30% Commission on Subscription Revenue

Disney has made a strategic decision to no longer allow users to sign up for Disney+ or Hulu subscriptions through the Apple App Store. This move is aimed at avoiding the 15 to 30% commission that Apple typically charges for in-app purchases.

The change came to light last weekend when it was discussed on Reddit, and further details were provided on the Disney+ and Hulu websites. New and returning subscribers are now required to sign up and make payments directly through the respective websites. However, existing subscribers who are billed through Apple will not be affected by this change and can continue using the App Store for payments.

By directing customers to sign up and pay on their websites, Disney will circumvent the need to pay Apple a percentage of the transaction. This adjustment will also result in both Disney+ and Hulu being categorized as "reader" apps.

This decision by Disney follows recent subscription price hikes that were implemented on both streaming services on October 17. Disney+ saw a $2 increase in plan pricing, while Hulu’s ad-supported plan became $2 more expensive, and the ad-free version saw a $1 price hike.

In addition to these changes, Disney has been actively making adjustments to the Disney+ and Hulu apps, including cracking down on password sharing. Moreover, this decision means that Disney+ and Hulu will no longer be part of Apple’s Video Partner Program. Subscribers might notice changes in tvOS and the Apple TV app as a result of this exclusion from the program, which is designed for apps offering premium subscription video entertainment services.

Overall, Disney’s move to discontinue in-app subscription purchases through the Apple App Store is part of a broader strategy to retain a larger share of subscription revenues and streamline the sign-up process for users. This shift is in line with recent updates and adjustments made by Disney to enhance the user experience and optimize revenue streams on its streaming platforms.