Disney and Apple are breaking up over app store fees

Disney's Strategic Shift in Subscription Services - Disney is no longer allowing new customers to sign up for Hulu or Disney+ via Apple's App Store, directing them to Disney's own site instead [1][2] - Existing customers who subscribed through Apple can continue their payments via the App Store [2] - The move is driven by Disney's desire to avoid Apple's 15% fee on monthly subscription revenues generated through the App Store [2] Disney's Rationale and CEO's Perspective - Disney CEO Bob Iger emphasized the need to reevaluate distribution strategies, citing the costs associated with third-party app stores like Apple's [2] - Iger highlighted that unlike Netflix, Disney relies heavily on third-party app stores for distribution, which comes with significant financial implications [2] - The decision mirrors Netflix's 2018 move to bypass Apple's App Store for subscription sign-ups, indicating a broader industry trend [2] Historical Context of Disney-Apple Relationship - Disney and Apple have a long-standing partnership, dating back to 2005 when Disney allowed Apple to sell individual episodes of Disney-owned shows through iTunes [3] - The relationship deepened in 2006 when Disney acquired Pixar for $7.4 billion, making Apple cofounder Steve Jobs Disney's largest shareholder [3] - Despite the current rift, the two companies continue to collaborate on projects, such as Disney's involvement in Apple's Vision Pro headset [3] Industry Implications - The move reflects a growing trend among content providers to reduce reliance on third-party app stores to retain a larger share of subscription revenues [2] - The decision underscores the tension between content creators and platform providers over revenue-sharing models [2]