Hulu and Disney+ Remove iOS App Store Sign-Up Requirement

Disney+ and Hulu have made a significant change in how customers can subscribe to their services via Apple’s App Store. Now, individuals are required to purchase subscriptions directly from the respective platforms’ websites, rather than through the App Store.

For existing subscribers who are currently billed through Apple, there is no 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 the Disney+ and Hulu 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 discontinuing Apple billing for new subscriptions, Disney and Hulu can avoid paying the 30% fee that Apple charges for in-app purchases made via its App Store. This change comes shortly after Disney increased its monthly rates for Hulu and Disney+ by $2, leading to potentially higher profit margins for the company.

The decision to no longer support in-app purchases has broader consequences for Apple as well. It is anticipated that Apple will remove Disney+ and Hulu from its Video Partner Program, which facilitates app integration with Siri, AirPlay, Universal Search, and other Apple features.

This shift follows a similar move by Netflix in 2019 to bypass Apple’s in-app purchase fees by directing users to its website for purchases. Spotify also refrains from accepting in-app purchases via the iOS App Store to avoid profit-sharing with Apple, citing concerns over the 30% fee. This stance has led to ongoing disputes between Spotify and Apple, with Spotify’s CEO criticizing the fee as a form of price inflation. The European Union even fined Apple $539 million earlier this year for allegedly impeding competition in the music-streaming app market.

As streaming platforms navigate the landscape of app distribution and revenue sharing, these strategic decisions have implications not only for the companies involved but also for the broader ecosystem of digital content consumption.