Hulu and Disney Plus Stop App Store Signups and Payments
Disney has made a significant change regarding how customers can sign up for and purchase subscriptions to Hulu or Disney+ through Apple’s App Store. This change means that Disney is no longer allowing customers to use the App Store for these transactions, eliminating any subscription fees that would have been paid to Apple for in-app purchases.
The decision was recently highlighted on Reddit, and both the Disney+ and Hulu websites now state that new and returning subscribers cannot sign up and pay through Apple. However, existing subscribers who are billed through Apple are not affected by this change. Customers can still access content on Apple devices by logging into their Hulu and Disney+ accounts through the iOS apps. Disney is now encouraging customers to visit their websites to view all available plans and directly sign up for a subscription.
Apple typically collects a 15 to 30 percent fee for digital purchases like subscription services made through its in-app purchase system. By removing the option for signing up for streaming services through the App Store, Disney avoids paying these fees and will now be classified as a "reader" app.
This move coincides with recent price increases that Disney implemented on October 17. Disney+ plan prices went up by $2, while Hulu with ads increased by $2 and Hulu without ads by $1. Eliminating the in-app purchase fees paid to Apple appears to be part of an overall strategy to boost streaming revenue, along with the price hikes and a recent crackdown on password sharing.
Going forward, Disney+ and Hulu will no longer be part of Apple’s Video Partner Program. Subscribers may notice changes in tvOS and the Apple TV app as a result. The Video Partner Program offers integration with Apple technologies such as Siri, AirPlay, Universal Search, zero sign-on, and more for streaming video apps that support in-app purchases.
In summary, Disney’s decision to discontinue support for in-app purchases through the App Store for Hulu and Disney+ subscriptions marks a strategic shift aimed at maximizing revenue and reducing costs associated with third-party platforms. Customers are now directed to sign up for subscriptions directly through the respective websites, bypassing Apple’s in-app purchase system and its associated fees.