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Disney+ and Hulu Say No to Apple’s 15 to 30% Cut of the Action on Subscriptions

Disney+ and Hulu Say No to Apple’s 15 to 30% Cut of the Action on Subscriptions

Disney will no longer allow you to sign up and purchase Disney+ or Hulu subscriptions through the Apple App Store, allowing Disney to avoid paying a 15 to 30% of the action to Apple for using in-app purchases.

The change was first noted on Reddit last weekend, and there House of the Mouse has provided details about the move on the Disney+ and Hulu websites. New and returning subscribers can no longer sign up for and pay through Apple. However, existing Apple-billed subscribers are not affected and can continue to pay through the App Store.

Apple collects a 15 to 30% commission from each in-app transaction. By directing customers to the Disney+ and Hulu websites to sign-up and pay for a subscription, Disney will avoid paying Apple its cut of the action and both apps will now be classified as a “reader” app.

Disney’s decision to drop in-app subscription purchases comes on the heels of subscription price increases that went into effect on both streaming services on October 17. Disney+ plan pricing increase by $2, while the Hulu with ads price is $2 more expensive and Hulu without ads will cost users $1 more.

Disney has made several recent changes in the Disney+ and Hulu apps, including price hikes and a recent crackdown on password sharing.

As pointed out by MacRumors, this also means Disney+ and Hulu will no longer be eligible for Apple’s Video Partner Program going forward, so subscribers may notice a change in tvOS and the Apple TV app. The program is designed for apps that deliver premium subscription video entertainment services. Participating apps are required to integrate with a number of Apple technologies, such as Universal Search, Siri, AirPlay, and single sign-on or zero sign-on, to ensure a seamless experience for customers.