Disney Plus and Hulu Avoid Apple’s 30% Commission on TradingView
Walt Disney Co. has made a strategic decision to no longer allow new subscribers to sign up for Hulu and Disney+ through Apple Inc.’s App Store. This move is aimed at avoiding the in-app purchase fees charged by Apple, which typically range from 15% to 30% per transaction. While existing subscribers who are currently billed through Apple will not be affected by this change, new customers are now directed to Disney’s websites to explore subscription plans and sign up directly.
This decision aligns with Disney’s recent price adjustments that went into effect on October 17. Disney+ subscription costs have increased by $2, while Hulu subscriptions with and without ads have seen price hikes of $2 and $1, respectively. The elimination of in-app purchase fees is part of Disney’s broader strategy to enhance streaming revenue, alongside the implementation of price increases and efforts to crack down on password sharing.
In August, Disney reported its financial results for the third quarter of fiscal 2024, marking a significant milestone as its streaming segment, comprising Disney+, Hulu, and ESPN+, turned profitable ahead of projections. The streaming division achieved an operating profit of $47 million, marking a notable turnaround from a $512 million loss in the same period the previous year. However, excluding ESPN+, the direct-to-consumer streaming unit still reported a $19 million loss, while revenue from Disney’s traditional TV networks declined by 7%.
Disney’s decision to discontinue sign-ups for Hulu and Disney+ via Apple’s App Store reflects a broader trend of tech companies challenging Apple’s in-app purchase policies. Earlier this year, the Supreme Court’s ruling in an antitrust lawsuit involving Apple and Epic Games signaled potential implications for Apple’s revenue model. Meta Platforms, Microsoft Corporation, and Match Group have also expressed opposition to Apple’s payment policies.
In the second quarter of 2024, the Apple App Store generated $24.6 billion in revenue globally, surpassing the revenue earned by Android users through the Google Play Store. Projections suggest that by 2027, the Apple App Store could generate around $125 billion in revenue worldwide, while the Google Play Store is anticipated to reach $60 billion in revenue from subscriptions and in-app purchases, according to Statista.
In conclusion, Disney’s decision to bypass Apple’s in-app purchase fees for Hulu and Disney+ subscriptions signifies a strategic shift in the streaming landscape, reflecting broader industry trends and challenges to established app store payment practices.
