What’s Behind the Disney-Apple Rift?

Published: October 24, 2024

What’s Behind the Disney-Apple Rift?

By Movieguide® Contributor

disney is no longer allowing users to sign up for disney+ or Hulu through the App Store to circumvent the 15% cut Apple takes when users do so.

Apple takes a disney-and-Apple-are-breaking-up-over-app-store-fees/ar-AA1sJlmU?ocid=hpmsn&cvid=d1c6da2ccdc84beb9edd45cf84a24590&ei=9">15% cut of all the earnings generated through the app store. After revealing in May that it was reconsidering allowing users to subscribe to disney+ or Hulu through their apps, disney has officially taken away that ability — though users who have already signed up that way will be allowed to continue to pay in that way.

“We have to look at the way we’re distributing,” disney CEO, Bob Iger, disney-and-Apple-are-breaking-up-over-app-store-fees/ar-AA1sJlmU?ocid=hpmsn&cvid=d1c6da2ccdc84beb9edd45cf84a24590&ei=9">said earlier this year. “Unlike Netflix, we distribute largely through third-party app stores. There’s obviously an advantage to that to some extent, but there’s a cost to that too. And we’re looking at that.”

disney-dominates-as-most-download-app-in-u-s-during-fourth-quarter.html">READ MORE: disney+ DOMINATES AS MOST DOWNLOADED APP IN U.S. DURING FOURTH QUARTER

While distribution through that app store has been a large area of growth for disney, users will now have to register for their selected streaming service online before being able to log in to their accounts through the app.

Apple’s 15% cut has been a frustration for many app developers. The practice has been eyed by lawmakers in the past, especially because Apple and Google — who takes a similar cut — are the only app stores available on their respective devices. North Dakota previously considered a bill that aimed at the monopolistic practices of these app stores.

“The purpose of the bill is to level the playing field for app developers in North Dakota and protect customers from devastating, monopolistic fees imposed by big tech companies,” said Senator Kyle Davidson about the fee applied to both Apple’s and Google’s in-app purchases.

DAWA Solutions Group President Jeff Zarling, of Williston, added that the monopolization of the app stores goes past mere distribution: “[They have] injected themselves into every aspect of the revenue-generating model of every business that runs on their app store, in any transaction, anywhere down the line.”