In a significant move, Disney has stopped allowing users to subscribe to its streaming services Disney+ and Hulu via Apple’s App Store, aiming to avoid paying Apple’s substantial commission fees. Disney now directs users to its official websites for registration and payment, bypassing App Store subscriptions. This allows Disney to sidestep Apple’s in-app purchase fees, which can reach up to 30% of each transaction.
This change is already reflected on the Disney+ and Hulu official websites, where new and returning users are no longer able to subscribe or pay through the App Store. However, current subscribers who have already signed up via Apple will remain unaffected and can continue to use their subscriptions as normal. While iOS users can still access Disney+ and Hulu content via the apps, all new subscriptions must now be handled directly on Disney’s websites.
This move is part of Disney’s broader strategy to reduce costs. Apple’s fees for in-app purchases (IAP) have long been a point of contention, especially for large companies and streaming services. Apple typically charges up to 30% of all subscriptions and transactions made through its platform, which has prompted companies like Disney to seek alternative payment methods to retain more revenue.
Disney is not the first company to implement this strategy. In February 2024, Netflix also stopped supporting subscription payments through the App Store, requiring users to register and pay through its website instead. These companies argue that Apple’s commission fees not only impact their profitability but also limit direct engagement with their users. Apple’s in-app purchase policy has been criticized for being monopolistic, leading to legal battles such as the one between Epic Games and Apple.
The Growing Controversy Over Apple’s Fees
Apple’s commission policy has been a frequent target of criticism from major corporations. Under Apple’s rules, any in-app purchase or subscription made through the App Store is subject to Apple’s commission. While smaller developers benefit from a reduced fee of 15%, larger companies like Disney, Netflix, and Epic Games are still subject to the full 30%. As a result, these companies are increasingly seeking ways to bypass Apple’s payment channels, with Disney’s latest move being the most recent example of this trend.
This change also means an adjustment in the user experience. For iOS users, while they can still access Disney+ and Hulu content on their iPhones or iPads, they must now go through the websites to register and pay, making the subscription process slightly more cumbersome. However, Disney values the ability to directly manage its payment and subscription processes, which could lead to higher user retention and increased long-term profits.
In the future, as more large service providers choose to bypass Apple’s payment system, Apple could face growing pressure, not only from legal challenges but also from user criticism regarding its closed ecosystem. Giants like Netflix and Spotify have already implemented similar strategies, and with Disney now joining the ranks, Apple’s dominance in the digital content subscription space may be further weakened.
Looking Ahead
As competition in the streaming industry intensifies, Disney clearly aims to strengthen its market position by offering more flexible subscription and payment options. Without being affected by Apple’s fees, Disney can create more competitive pricing strategies and introduce new offers to attract users. While this shift may cause short-term inconvenience for some users, in the long run, it could help improve user satisfaction and profitability by giving Disney greater control over its payment systems.
Overall, Disney’s move to bypass App Store fees sets a precedent for streaming giants further challenging Apple’s dominance. This decision not only enhances Disney’s financial performance but also serves as a model for other companies. As more companies follow Disney’s lead, Apple’s commission policy may face even greater scrutiny and challenges in the future.
