Patreon Faces Apple’s 30% Fee on iOS In-App Purchases: What Creators Need to Know
8/12/2024Patreon Faces Apple’s 30% Fee on iOS In-App Purchases: What Creators Need to Know
Introduction
In a recent move that has sent shockwaves through the creator community, Apple is now enforcing its App Store rules on digital purchases for Patreon. The popular membership platform, which allows creators to offer exclusive content to subscribers, will be required to use in-app purchases and pay a hefty 30% fee to Apple for all new memberships purchased via iOS devices. Let’s dive into the details and explore how this change impacts creators.
The Background
Patreon had been able to bypass Apple’s regular fees by directing subscribers to a purchase flow outside of the App Store. However, starting in November 2024, new Patreon memberships will need to be processed through in-app purchases, subjecting them to the 30% fee. Existing subscribers are not affected by this change.
Options for Creators
Patreon is giving creators two options to handle the fee:
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Increase Prices: Creators can raise their subscription fees specifically within the iOS app to account for the 30% cut. While this ensures consistent pricing across platforms, it may result in lower earnings per membership on in-app iOS transactions.
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Absorb the Fee: Alternatively, creators can choose to absorb the fee themselves, keeping prices the same for all subscribers. However, Patreon does not recommend this approach due to the potential impact on earnings.
Billing Model Transition
Creators using first-of-the-month billing or per-creation billing plans will need to switch to subscription billing for their iOS supporters. The in-app purchase system does not support these flexible payment types. Patreon plans to complete this transition for all creators by November 2025.
Conclusion
As Apple tightens its grip on in-app purchases, Patreon creators face a critical decision. While the default option is to increase prices, the platform emphasizes the importance of giving creators agency to make their own choices. Ultimately, the balance between revenue and user experience lies in the hands of those who bring their creativity to life.