It’s been a few months since I got to rap for y’all at The StreamTV Show in Denver, but I’ve been busy building out The Streaming Wars and spending quite a bit of time speaking with media executives. Across those conversations, we’ve picked up a common thread running through multiple media organizations. What they’re saying didn’t surprise me—but what’s striking is how many of them said the same thing, and yet, I’ve never heard anybody say it publicly.
They’re frustrated with platform taxes, not owning the customer relationship, and tired of tech gatekeepers siphoning off a cut of their revenues. Don’t shoot the messenger, but this issue is much bigger than anyone openly discusses. Media companies are afraid to comment publicly and are worried about the backlash from platform partners. And these frustrations aren’t limited to subscription-based services—platform taxes also hit ad-supported models, with companies often having to share significant portions of their ad revenue with platforms.
This resentment is being exacerbated as Wall Street continues to demand profitability from these companies’ streaming endeavors. With razor-thin profit margins, the platform taxes imposed by app stores like Apple, Google, Roku, and Amazon are becoming a serious pain point. Beyond the financial hit, another pressing concern is owning the customer data. Losing access to this data hampers product marketing teams, who rely on it for personalized marketing campaigns and churn prevention strategies. Marketing efforts are less effective without direct customer data, making it harder to retain subscribers and drive long-term growth.
The shift toward direct billing
Disney’s latest move to strip in-app billing from Apple’s App Store for Disney+ and Hulu subscribers is the clearest sign of how streaming platforms are fighting against the platform tax. Disney has been inching toward this for a while—cutting Apple’s fees where it could—but this is the first time they’re flat out saying that customers can’t sign up using Apple Pay at all. By forcing users to subscribe directly through their websites, companies like Disney are bypassing third-party platforms that claim a hefty 15-30% cut of subscription revenues.
This isn’t just about saving a few dollars; it’s about controlling the entire customer journey. Disney, Netflix, and Spotify have already paved the way, realizing that platform taxes eat into their margins and limit access to valuable customer data—critical data for tailoring marketing strategies and reducing churn. This shift is part of a larger industry-wide trend we’ve been tracking, underscoring the strategic importance of owning the entire customer relationship from end to end.
The industry’s growing secret frustration
The rising resentment toward platform taxes has been building for years. We’ve had conversations with senior leaders across the industry who are fed up with third-party platforms taking a slice of their revenue while simultaneously controlling customer data. By using these platforms, companies lose revenue and critical insights into their audience, which are essential for creating personalized experiences that keep subscribers engaged.
And while many in the industry have told us that unless regulators like the DOJ or the EU get involved, nothing will change, there are signs of movement. Epic Games’ legal battle with Apple over platform fees is a prime example of how industries are starting to push back. Media companies are watching these developments closely, hopeful that broader changes could benefit streaming platforms.
This frustration extends beyond subscription-based streaming. Ad-supported models also suffer, with platforms often demanding a share of advertising revenue or inventory, further squeezing profits. We recently covered the launch of the Starz-BritBox bundle, a key example of how services are starting to bypass these platforms by handling their own billing. This bundling trend is a way for streaming companies to control not just revenue but also the customer experience and the valuable data that comes with it.
Breaking down the DTC myth
The term direct-to-consumer is widely misunderstood in our industry. Many people think that having a standalone app qualifies as DTC, but that’s far from the truth. When users sign up for Disney+ or Hulu via Apple Pay or Roku Pay, the transaction isn’t truly direct. Third-party platforms still control the payment infrastructure, take a percentage of the revenue, and hold on to customer data, all while limiting media companies’ ability to interact directly with their customers.
Pure DTC, on the other hand, involves customers subscribing directly through a company’s website or app, where the streamer controls the billing process, customer relationships, and data. Companies like Disney, Starz, and BritBox are pushing hard to shift toward this model, realizing it’s the only way to retain control over the most valuable aspects of their business—revenue, data, and customer loyalty.
What we’ve found through our industry research is that only 16% of streaming subscribers are pure DTC. Most are still tied to third-party payment platforms or bundled offerings. The remaining 84% are split between wholesale (where streaming services are part of a broader bundle with aggregators like Amazon Channels or mobile operators) and third-party direct subscribers who sign up through platforms like Apple or Roku. This discrepancy highlights how difficult it is for companies to establish direct customer relationships.
As we’ve discussed, “Streaming companies like Disney, Starz, and BritBox want to own the entire transaction—billing, customer service, and data analytics—without intermediaries taking a cut or controlling any part of the user experience. This shift is central to the ongoing industry effort to redefine what it truly means to be ‘direct-to-consumer.’”
The impact on profitability and subscriber growth
As Wall Street increasingly demands profitability from streaming companies, the platform tax issue has taken center stage. Profit margins in the streaming industry are already razor-thin, and every dollar counts. Companies must invest heavily in content, infrastructure, and technology, and platform fees complicate an already tough financial equation.
The Streaming Wars has extensively reported the rising content costs and the investment required to maintain a top-tier streaming service. Platform taxes compound these costs. Those margins can make or break profitability in an industry where billions are spent on content production. As more companies shift to direct billing models, we expect others to follow suit to reclaim revenue.
Bundling as a strategic countermove
While the battle over platform taxes intensifies, bundling has emerged as another critical strategy for streaming platforms. Bundles like the Disney+, Hulu, and Max bundle or the newly launched Starz-BritBox deal are designed to reduce reliance on third-party platforms by keeping everything in-house. These bundles drive users through the company’s owned-and-operated ecosystem, reducing the cut taken by intermediaries and ensuring that media companies can control the customer experience, billing, and data analytics.
The road ahead: More companies will follow
Disney’s move to pull in-app billing from Apple is just the beginning. This marks a broader shift in the industry, where content owners are looking to reclaim control from tech gatekeepers. The resentment toward platform taxes has been growing for years, and we expect to see more services moving away from third-party billing solutions in the months ahead.
Ultimately, the fight for control over customer relationships, data, and revenue will define the next phase of the streaming wars. As more companies follow Disney’s lead, the pressure will mount on app platforms to adjust their terms—or risk losing valuable content partners altogether.
The fight for direct control is just beginning. Stay tuned.
Kirby Grines is the founder of content marketing agency 43Twenty and industry publication The Streaming Wars. Before that, he co-founded Float Left, where he helped design and build some of the earliest connected TV apps. He loves the industry and sometimes raps about it.