Disney Challenges Big Tech Giants for Fair App Store Deals

Disney CEO Bob Iger is not one to mince words, and he recently made it clear that he’s not entirely satisfied with the current deals in place with tech giants like Apple and Google when it comes to distributing Disney’s streaming services. At an investor conference, Iger expressed his concerns about the amount of money Disney is shelling out to these Big Tech app stores that are responsible for distributing popular Disney-owned streamers such as Hulu and Disney+.

Iger pointed out that unlike Netflix, which largely handles its own distribution, Disney relies heavily on third-party app stores. While this setup has its advantages, there’s a significant cost associated with it as well. The details of these distribution deals can vary significantly from one platform to another. For instance, Apple charges video companies like Disney a 15% cut of revenue for signups that occur within apps distributed through the App Store, while Roku has its own fee structures in place for its connected TV devices.

Despite concerns about the financial impact of these distribution deals, Netflix’s growth has remained largely unaffected. It’s evident that these arrangements can yield substantial benefits when it comes to a company’s bottom line. For many tech companies, app stores and app distribution play a crucial role in their business strategies. Apple, for example, derives a significant portion of its revenue from the App Store, taking up to 30% of revenues generated from in-app purchases and signups.

However, the landscape may be shifting, and Disney might not necessarily have to sever ties with third-party app stores to achieve its financial goals. Apple, in particular, has faced increasing scrutiny over its App Store policies, with regulators worldwide pressuring the tech giant to make changes. This could potentially pave the way for more favorable terms for companies like Disney in the future.

In light of these developments, it’s clear that the dynamics between media companies and tech giants are evolving rapidly. With significant sums of money at stake, negotiations over distribution deals are becoming increasingly complex. As the competition in the streaming industry heats up, companies like Disney are keen to maximize their profits and explore all available options to optimize their revenue streams in the digital age.