Disney+ and Hulu Stop Using App Store In-App Purchase for Billing

Apple’s App Store has long required streaming platforms to offer in-app purchase options for subscriptions. However, a recent shift in policy has seen many platforms, including Disney, opting out of this requirement.

Disney has made the decision to remove the option to subscribe to Disney+ and Hulu through their iOS apps. New users are now directed to create accounts through external websites rather than using in-app purchases. Existing subscribers who use in-app purchases will not be affected, but new subscribers must now visit the designated website to sign up.

This move by Disney follows similar actions by other streaming platforms like Netflix and Spotify, who have also moved away from Apple’s in-app purchases. Apple’s change in App Store policies in 2022 allowed for certain exceptions for "reader" apps, which provide digital content as their primary function.

The motivation behind this shift is largely financial, as platforms aim to avoid paying the 15-30% commission to Apple. Despite this, Disney+ and Hulu have announced price increases for their subscriptions. Disney CEO Bob Iger previously expressed the goal of turning streaming into a profitable venture by reducing customer acquisition costs and marketing expenses.

While Disney may be displeased with App Store fees, Apple has highlighted the benefits of the App Store in reaching a wide audience for Disney’s apps, games, and theme park utilities. Additionally, Disney+ and Hulu have benefited from Apple’s Video Partner Program, which not only enhances content promotion but also reduces the App Store commission from 30% to 15%.

Apple argues that its in-app purchase system remains the best way for users to buy digital goods and services, citing its ability to handle transactions across various countries and currencies, along with built-in anti-fraud measures. Users who subscribe to Disney+ or Hulu through their iOS apps can manage their subscriptions within the app settings.

As streaming platforms continue to navigate the evolving landscape of digital subscriptions and app store policies, the decisions made by industry giants like Disney and Apple will likely have a significant impact on the future of the streaming industry.