Apple takes a 30 percent cut for iOS purchases.
In a notable shake-up, new subscribers to Disney+ and Hulu will no longer have the option to sign up via Apple’s App Store. Disney, which owns both streaming platforms, quietly announced the change through updates to their help centers. Instead, prospective subscribers are being directed to visit the platforms’ websites and sign up directly. This move signals Disney’s push to sidestep Apple’s infamous 30% commission on purchases made through iOS apps — a cut that eats significantly into developers’ and even entertainment giants like Disney’s profits.
What Does This Mean for Existing Customers?
For current subscribers using Apple’s billing system, there’s no need to panic just yet. Existing Hulu and Disney+ users can continue managing their subscriptions through Apple, but Hulu specifically notes, “If you no longer wish to be billed by Apple, you will need to subscribe directly through Hulu.” While this message might seem neutral, it’s hard not to see it as a gentle nudge, encouraging customers to rethink their current setup. Should you choose to switch, you’ll have to cancel your Apple-billed subscription and then re-enroll directly through Hulu or Disney+.
However, there are some restrictions for Apple-billed Hulu subscribers. They now only have access to two subscription options: Hulu with ads or Hulu without ads. Those interested in Hulu’s Live TV offering or add-ons will have to sign up for those services directly through the Hulu website.
A Strategic Move as Prices Rise
This decision comes hot on the heels of significant price hikes for both Hulu and Disney+, announced back in August. Disney has already rolled out these changes, with the ad-supported Disney+ Basic and Hulu plans jumping from $8 to $10 per month, and the ad-free Disney+ Premium plan increasing from $14 to $16. Hulu’s ad-free plan now sits at $20 per month, up from $18.
With prices going up, Disney’s decision to eliminate Apple’s 30% cut could be seen as a strategic way to maintain profitability while minimizing the need for future price hikes. The timing suggests that Disney is looking to cut out middlemen and take full control of its subscription revenues, especially as costs rise for consumers.
The Bigger Picture: Apple’s 30% Cut
Apple’s 30% commission has been a contentious issue for years, and Disney’s decision is part of a broader trend among major companies resisting the fee. Apple’s policy, which applies to all in-app purchases and subscriptions made through iOS apps, has been the subject of high-profile lawsuits, including cases brought by Epic Games and Spotify. These companies argue that Apple unfairly blocks third-party purchases and app stores to maintain its control over digital transactions on its devices.
Disney’s move to bypass the App Store altogether is a bold statement, especially considering how much of the streaming market is dominated by mobile users. The move is likely to ruffle some feathers at Apple, which has been determined to hold onto its 30% cut despite growing pushback from developers, content creators, and tech companies alike.
What’s Next for Consumers?
For Disney and Hulu customers, this shift might mean a bit more legwork to manage their subscriptions, especially if they’re used to handling everything within the App Store ecosystem. However, the direct-to-platform sign-up model could offer more flexibility, especially for those interested in bundle deals, add-ons, or additional services that might not be available through Apple’s limited options.
For the industry, Disney’s decision represents a growing trend of companies reclaiming control over their subscription models, pushing back against Apple’s stronghold on the app marketplace. As more companies follow suit, we could see the beginning of a larger shift in how digital services operate within ecosystems like Apple’s App Store.
In the meantime, one thing is certain: Apple is unlikely to be thrilled with Disney’s move, but it’s a reminder that even giants like Apple can’t always hold onto their 30% slice without resistance. As the streaming wars continue to evolve, so too does the landscape of how we access and pay for the content we love.
