Over the past few years, the streaming landscape has undergone significant changes, and Disney+ is no exception. In recent updates, Disney has made a major decision to stop allowing new subscriptions or reactivations through Apple’s App Store. Additionally, Disney+ has followed the trend of raising subscription prices, akin to what Netflix did, to keep up with the evolving economics of streaming platforms. Let’s dive into the details of these changes and how they affect Disney+ users.
1. Disney+ Cuts Ties with Apple’s App Store
In a bold move, Disney+ has stopped allowing users to subscribe directly through Apple’s App Store. This decision mirrors strategies employed by Netflix and Spotify, aimed at circumventing Apple’s 15-30% commission on in-app purchases. By doing this, Disney+ ensures that more of the subscription revenue goes directly to the company rather than being shared with Apple.
Now, when users try to sign up through the Disney+ app on iOS, they are greeted with a message prompting them to subscribe through the official Disney+ website. While this might seem inconvenient for users who were accustomed to the ease of in-app purchases, it also allows Disney+ to avoid paying Apple’s fee and possibly pass on savings to consumers in the future. Existing users who signed up through Apple will still have their subscriptions managed via Apple, at least for now.
Additionally, the decision to leave the App Store also means Disney+ has transitioned into what Apple classifies as a “reader app.” This classification allows users to access content previously purchased through an external service but limits some integrations with Siri, Apple TV, and Universal Search features.
2. Implications for Apple Users
The change can have significant implications for Apple users. Disney+ users can no longer utilize their App Store gift cards or credits for subscriptions, and the easy auto-renew feature tied to Apple IDs is no longer available. Additionally, there’s a potential decrease in the app’s seamless integration with Apple’s ecosystem, affecting compatibility with Siri voice commands and Apple TV’s universal search functions.
While it may add a layer of inconvenience for users who rely on Apple’s in-app purchase system, Disney+’s decision underscores a growing trend among big streaming companies that are pushing back against the hefty fees charged by app marketplaces.
3. Disney+ Subscription Price Hike: What’s Changing?
Adding to the policy change, Disney+ has also increased its subscription prices across various plans, reflecting the rising costs of producing premium content and running a global streaming service. As of October 17, 2024, Disney+ has rolled out new pricing tiers for its subscription plans, following a similar move by Netflix earlier this year.
- Standard Plan (With Ads): The only plan that remains unchanged. Subscribers pay €5.99 per month for the standard plan, which offers full HD (1080p) video quality and 5.1 surround sound. This plan allows users to stream on two devices simultaneously but includes ad interruptions.
- Standard Plan (Ad-Free): The price for this plan has increased by €1 per month, from €8.99 to €9.99 per month. Subscribers can stream content without ad interruptions, with the same video and audio quality as the ad-supported version. The annual subscription for this plan now costs €99.90, an increase from the previous €89.90.
- Premium Plan (Ad-Free, 4K): The most significant price hike affects the Premium plan, which has gone up by €2 per month, from €11.99 to €13.99 per month. This plan offers enhanced features such as 4K UHD video quality, Dolby Atmos sound, and allows streaming on four devices simultaneously. The annual price has risen from €119.90 to €139.90, reflecting a €20 increase.
4. What Triggered the Price Increase?
As with Netflix, Disney+ attributes these price hikes to increased production costs and its ongoing efforts to create high-quality, exclusive content. Shows like “Daredevil: Born Again” and major blockbuster franchises available only on Disney+ continue to drive viewership, but they also come with steep production budgets. These price hikes help Disney sustain its production of premium content while also increasing its margins in a competitive streaming market.
Additionally, Disney+ has followed Netflix’s lead in cracking down on password sharing, which could signal the company’s intent to increase individual subscriber counts rather than relying on multiple users sharing one account.
5. A Growing Trend in Streaming Services
Disney+ is not the first major streaming service to break away from in-app purchases or raise subscription prices. Netflix and Spotify have already removed the option of subscribing through the App Store, opting instead for direct subscriptions via their websites. Both companies have similarly raised subscription prices to compensate for the growing costs associated with producing original content.
By removing the in-app purchase option, these companies are seeking to avoid Apple’s commissions, a move that has become a trend as more businesses push back against the App Store’s fees. For Disney+, this move aligns with its broader efforts to optimize revenue and limit expenses related to app store fees.
For users, however, the trade-off might come in the form of reduced convenience, as managing subscriptions outside the App Store adds an extra step to the process. Yet, despite the additional effort, the broader trend is clear: streaming platforms are working to regain control over their revenue streams and minimize reliance on third-party platforms.
6. Impact on Users and Future Considerations
While Disney+ subscribers will have to adjust to these changes, it’s worth noting that the app itself remains fully functional, with users still able to access their favorite shows and movies seamlessly.
However, for users who have relied on Apple’s subscription management, the shift to website-based subscriptions may come with a learning curve. Without the ability to use App Store credits or easily manage subscriptions via Apple ID, some users may feel inconvenienced by the added steps in subscription management.
In addition, this change raises broader questions about the future relationship between streaming services and app marketplaces. As more platforms look for ways to avoid paying commission fees, it’s possible that this trend will continue, with more companies adopting external subscription models.
Conclusion
Disney+ is evolving its business model to adapt to the growing economic pressures of producing exclusive, high-budget content. By severing ties with Apple’s in-app purchase system and raising subscription prices, Disney is seeking to retain more control over its revenue. While this means a few extra steps for users to subscribe and manage their accounts, it ultimately enables Disney to provide better content and services without sacrificing profitability.
At the same time, the price hikes reflect the growing costs of streaming services, and users may need to adjust to paying more for premium content. Disney+ remains a powerhouse in the streaming world, and despite these changes, its expansive library of shows and movies, including highly anticipated releases like “Daredevil: Born Again,” ensures it will remain a top player for years to come.
