- Disney is parting ways with Apple — at least a little bit.
- Disney no longer allows new customers to sign up for Hulu or Disney+ via Apple’s App Store.
- The move comes after Disney CEO Bob Iger complained about app store fees.
If you want to sign up for a Hulu or Disney+ subscription, you don’t have to take out your iPhone.
Disney is now telling prospective customers to pay for their subscriptions on Disney’s own site, rather than Apple’s App Store. However, those who have already started paying for either service through Apple can continue to do so.
The two companies are currently collaborating on several projects. But the App Store split is definitely worth noting, as it represents a rift between the two longtime partners.
Disney’s rationale is clear here. When customers sign up for Disney subscription services through Apple, Apple receives up to 15% of the monthly fees incurred for those services. And Disney CEO Bob Iger has made it clear he doesn’t want to pay that money anymore.
“We need to rethink how we distribute,” Iger said at an investor conference in May. “Unlike Netflix, we primarily distribute through third-party app stores, which obviously has some benefits, but it also comes with a cost, and we are considering that. Masu.”
Mr. Iger’s comments did not attract much attention at the time, but in retrospect it is easy to draw a straight line from that public position to today. Much like Netflix in 2018, Disney decided that the services Apple offers through the App Store, the ability to market and charge for a huge installed base, wasn’t worth giving up significant revenue.
But one of the reasons I thought Mr. Iger wanted a new deal with Apple, rather than a complete break-up, was because Apple and Disney, especially Mr. Iger and Apple co-founder Steve -Jobs had a long-standing public partnership with the company.
Back in 2005, Mr. Iger had Mr. Jobs sell individual episodes of Disney-owned shows such as “Lost” through Apple’s iTunes store, which was a big deal at the time. Even more important was their deal the following year, when Disney acquired Jobs’ Pixar for $7.4 billion, making him the company’s largest shareholder.
Although Iger joined Apple’s board of directors after Jobs’ death in 2011, the two companies remain very close. For example, Disney struck a deal last year to create apps and experiences for Apple’s Vision Pro headset, but it’s hard to tell whether the move was a positive for both companies.
Representatives for Disney and Apple declined to comment.