Disney+ and Hulu no longer accept payments through the App Store
Apple users will have to sign up through the web.
Disney has announced that iPhone users can no longer pay for streaming services, Disney+ and Hulu, through the App Store. This means Apple users will need to take extra steps to enjoy the streaming services.
Rather than the usual payment process through the app, iPhone users now have to log in to Disney+ or Hulu website to make payments and then log back into the app to enjoy the services the platform offers.
This way, Disney can save money by not paying Apple for subscription fees. Typically, Apple collects a 15-30% cut of any subscription payment through them. This is why many streaming services like Spotify have more expensive subscription plans through the App Store.
As reported by MacRumors, this new way of subscribing will only affect new and returning subscribers, existing Apple-billed subscribers are not affected.
As a result, Hulu and Disney+ apps are now seen as reader apps, meaning they won’t be part of Apple’s Video Partner Program anymore. This could mean less integration with the Apple TV app and features like Siri, AirPlay, and zero sign-on.
Typically, this switch is cheaper for users and allows the company to make more money. But, Disney+ and Hulu recently slightly bumped up their subscription plans, presumably to increase revenue.
Apple taking a cut out of subscription plans has always caused issues for many iOS users and subscription-based service providers. Recently, Spotify concluded a five-year-long court case related to this and the court ruled in their favour.
Now, Spotify also encourages iPhone users to make payments via the website rather than through the App because it's cheaper for them to do so.
It doesn't look like the 15-30% cut is going anywhere anytime soon and other platforms may consider following Disney's footsteps and forcing users to subscribe from the web, or companies could maintain the sightly high prices on the App Store.
Either way, iPhone users will ultimately have two options, take a longer less convenient slightly cheaper route of signing up via a website or continue to enjoy the premium Apple experience by paying a bit more than their peers through the App Store.