walt disney company DIS We have stopped allowing customers to subscribe to Hulu and Disney+. Apple’s AAPL app storewhich allows you to avoid iPhone manufacturers’ in-app purchase fees.
what happened: The entertainment giant will no longer allow new or returning subscribers to register and pay for these services through the App Store. However, this change does not affect existing subscribers who are billed through Apple.
Disney is now directing customers to its website where they can view all plans and sign up for a subscription directly. This strategy allows Disney to avoid the 15% to 30% fees that Apple charges on each transaction via in-app purchases.
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The move is in line with Disney’s latest price increase, which went into effect on October 17th. The cost of Disney+ plans increased by $2, while Hulu with and without ads experienced price increases of $2 and $1, respectively.
Eliminating in-app purchase fees appears to be part of Disney’s plan to improve streaming revenue, along with price hikes and a recent crackdown on password sharing.
In August, Disney released its financial results for the third quarter of fiscal 2024. The streaming division, which includes Disney+, Hulu, and Disney, was unveiled for the first time. ESPN+− Achieved profitability by one quarter, exceeding expectations.
The streaming segment’s operating income was $47 million, a significant rebound from the $512 million loss in the same period last year.
However, excluding ESPN+, the direct-to-consumer streaming segment still posted a loss of $19 million. Meanwhile, revenue from Disney’s traditional television network fell 7%.
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why is it important: Disney’s move to suspend Hulu and Disney+ subscriptions through Apple’s App Store reflects a broader trend of technology companies pushing back against Apple’s in-app purchase policies.
Earlier this year, in January, the Supreme Court ruled against Apple’s appeal in an antitrust case involving the App Store. This judgment includes epic gamescreator of fortnitewhich could have a noticeable impact on Apple’s bottom line.
Previously, Meta Platforms Co., Ltd. meta, Microsoft Corporation MSFTand match group Michiis the parent company of. craterall of whom have voiced strong opposition to Apple’s payment policies.
In the second quarter of 2024, the Apple App Store reportedly generated $24.6 billion in revenue from users around the world. This is more than double the revenue earned by the Apple App Store. android The user Google Play Store.
According to Statista, by 2027, the Apple App Store could bring in approximately $125 billion in revenue worldwide, while the Google Play Store is expected to reach $60 billion in revenue from subscriptions and in-app purchases. I am.
Image: Shutterstock/ymgerman
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