Disney+ and Hulu stop accepting payments via App Store

Disney has recently made a significant change that affects iPhone users who enjoy streaming services like Disney+ and Hulu. These users can no longer pay for their subscriptions through the App Store. Instead, they must now navigate to the Disney+ or Hulu website to make payments before returning to the app to access the services.

The reason behind this shift is financial. By bypassing Apple’s subscription fees, Disney can save money. Typically, Apple takes a 15-30% cut of any subscription payment made through its platform, leading to higher subscription prices for services like Spotify that opt to use the App Store for payments.

It’s important to note that this new payment method will only impact new and returning subscribers. Existing subscribers who currently pay through Apple will not be affected by this change. As a result of this adjustment, the Disney+ and Hulu apps are now categorized as reader apps, meaning they are no longer part of Apple’s Video Partner Program. This may result in reduced integration with Apple TV features such as Siri, AirPlay, and zero sign-on.

While this change may benefit users by potentially offering cheaper subscription plans, Disney+ and Hulu have recently slightly increased their subscription fees, likely in an effort to boost revenue. This move aligns with a broader trend among subscription-based services to encourage users to make payments directly through their websites, rather than through the App Store.

Apple’s practice of taking a percentage of subscription fees has long been a point of contention for both iOS users and service providers. Spotify, for example, recently won a court case related to this issue and now advises iPhone users to make payments through their website to save on costs.

It appears that the 15-30% cut taken by Apple is unlikely to change in the near future. As a result, other platforms may follow Disney’s lead in redirecting users to subscribe via the web, or they may opt to maintain slightly higher prices on the App Store. Ultimately, iPhone users will have to choose between a less convenient but cheaper route of signing up through a website or enjoying the seamless experience of paying a bit more through the App Store.