Disney+ and Hulu ditch App Store In-App Purchase billing as latest round of price increases goes into effect

In the past, Apple has always required streaming platforms available on the App Store to provide a way for users to subscribe directly through the app using in-app purchases. However, as this is no longer a requirement, many platforms have been ditching Apple’s in-app purchases, and Disney has just done so.

Disney+ and Hulu ditch Apple’s in-app purchases

As noted by many Reddit users over the weekend, Disney has removed the option to subscribe to both Disney+ and Hulu through their respective iOS apps. From now on, new users are instructed to create an account via an external website.

The news was confirmed by Disney itself on its website (via MacRumors), which now includes a section to inform new users (or those who want to resume their subscription) that they can no longer subscribe and pay for Disney+ via the app available for iPhone, iPad, Apple TV, and Apple Vision Pro.

For now, Disney says that customers who already subscribe to Disney+ or Hulu through in-app purchases on iOS won’t be affected and won’t have to choose a new payment method. New subscribers must visit disneyplus.com/next to create their account.

Disney follows other streaming platforms such as Netflix and Spotify, which have also dropped Apple’s in-app purchases. In 2022, Apple changed its App Store policies to allow “reader” apps to redirect users to an external website to complete a purchase. This exception is only valid for apps that provide digital content such as books, audio, and video as their main functionality.

Unsurprisingly, these platforms have chosen to do so to avoid paying the 15-30% commission to Apple. Despite no longer paying the App Store commission, Disney+ and Hulu won’t pass on the difference to their customers. In August, Disney announced price increases for subscriptions to both Hulu and Disney+.

The move doesn’t come as a surprise since Disney CEO Bob Iger said in April that the goal is to turn streaming into a “growing business” by reducing the “cost of customer acquisition” and cutting marketing costs.

Disney benefited from Apple’s special program for streaming platforms

Although Disney seems to be unhappy with the App Store fees, an Apple spokesperson emphasized to 9to5Mac that the App Store has helped Disney reach a lot of people with its apps, which also include games and utilities for its theme parks.

Disney+ and Hulu also benefited from Apple’s Video Partner Program, which not only helps streaming platforms better promote their content through Universal Search and Siri, but also reduces the App Store commission from 30% to 15%.

Apple argues that using the App Store’s in-app purchase system is still the best way to let users buy digital goods and services, as the system can manage transactions in many countries and currencies and also has its own anti-fraud mechanism.

If you subscribe to Disney+ or Hulu via their iOS apps, you can manage your subscriptions by going to Settings > Your Account > Subscriptions.