Hulu and Disney+ opt out of iOS App Store registrations

Disney+ and Hulu have made a significant change in their subscription process, no longer allowing sign-ups through Apple’s App Store. Customers are now required to purchase subscriptions directly from the streaming platforms’ respective websites.

Existing subscribers who currently pay through Apple do not need to cancel and resubscribe online. They can continue to be billed through Apple and manage their accounts using Apple Subscription settings, as stated on Disney+ and Hulu’s websites.

If you attempt to log in to the Disney+ or Hulu app on your iPhone without an active subscription, you will be prompted to complete the account setup in a web browser.

This alteration was noticed online over the weekend and has financial implications. By eliminating the option for in-app purchases through Apple, Disney avoids the 30% fee typically charged by Apple for such transactions. As Disney recently raised the monthly rates for Hulu and Disney+ by $2, this change results in even higher profit margins for the company.

With Hulu and Disney+ no longer supporting in-app purchases, it is anticipated that Apple will remove them from its Video Partner Program. This program enables app integration with Siri, AirPlay, Universal Search, and other Apple features.

This move follows a similar strategy adopted by Netflix in 2019, which redirected users away from Apple’s in-app purchase fees by directing them to its website for subscriptions. Spotify also avoids in-app purchases via the iOS App Store to circumvent profit-sharing with Apple, as the company has criticized Apple’s 30% fee as a form of price inflation.

Earlier this year, the European Union fined Apple $539 million for allegedly impeding competition in the music-streaming app market. These developments highlight the ongoing tensions between tech giants and app developers regarding fees and payment processing within app ecosystems.

In conclusion, the shift in subscription processes for Disney+ and Hulu signifies a strategic move to bypass Apple’s in-app purchase fees and potentially increase profitability. This decision aligns with a broader trend of streaming platforms seeking alternative payment methods to mitigate fees imposed by app stores.