Disney will no longer allow its customers to sign up for and purchase subscriptions to Hulu or Disney+ through Apple’s App Store, eliminating any subscription fees that Disney would have had to pay to Apple for using in-app purchases.
The change was spotted on Reddit this weekend, and there are details on the Disney+ and Hulu websites. Both the Disney+ and Hulu websites say new and returning subscribers won’t be able to sign up and pay through Apple, but existing subscribers billed by Apple won’t be affected.
Hulu and Disney+ customers can still watch content on Apple devices by logging into their Hulu and Disney+ accounts in the iOS apps. Disney is now directing customers to its websites to view all plans and sign up for a subscription directly.
For digital purchases such as subscription services, Apple collects a 15 to 30 percent fee for each transaction. By removing the option to sign up for streaming services through the in-app purchase system, Disney will not have to pay a fee to Apple and the app will be classified as a ‘reader’ app.
Disney’s decision to stop supporting in-app purchases follows price increases that went into effect on October 17. Prices for Disney+ subscriptions went up by $2, while Hulu with ads is $2 more expensive and Hulu without ads is $1 more. The elimination of in-app purchase fees paid to Apple appears to be part of an effort to increase streaming revenue, combined with price increases and also a recent crackdown on password sharing.
Disney+ and Hulu are now no longer eligible for Apple’s Video Partner Program, and subscribers may notice a change in tvOS and the Apple TV app. The Video Partner Program offers integration with Apple technologies such as Siri, AirPlay, Universal Search, zero sign-on and more for streaming video apps that support in-app purchases.
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