Patreon to Introduce Apple's 30% Commission on iOS App Memberships
Commencing from November 4th, 2024, Patreon memberships purchased through the iOS app will incur Apple's 30% commission. This implies creators will be compelled to utilize Apple's in-app payment system or face potential removal from the App Store.
In order to continue earning through the iOS app, creators will be required to transition to Patreon's subscription billing method. In an effort to aid creators, Patreon is allowing them to automatically raise their prices within the iOS app to counterbalance the additional cost.
It is important to note that this alteration solely impacts new memberships acquired through the iOS app, while existing subscriptions and memberships through Patreon's website or the Android app remain unaffected. Nevertheless, considering Patreon's existing fees, Apple's new commission could potentially pose further challenges for creators.
While some creators have the option to postpone the transition to the new billing method until November 2025, they will be unable to market memberships in the iOS app once Apple's requirements come into effect.
Patreon had been able to circumvent Apple's 30% commission by utilizing alternative payment processors. However, last year it was announced that Patreon would be required to adopt Apple's in-app payment system, complete with the 30% commission on digital goods beginning in 2024.
Experts are raising concerns about the impact of Apple's 30% commission on new Patreon memberships purchased through the iOS app starting November 4, 2024. This move forces creators to either raise their prices or absorb the significant fee, which could lead to reduced earnings. While Patreon has provided tools to help creators offset these costs by automatically increasing prices for iOS users, this solution may not be ideal for all creators, especially those who fear losing subscribers due to higher costs.
The decision underscores the broader issue of platform fees that content creators face, with some experts comparing it to the challenges that companies like Epic Games and Spotify have encountered with Apple's in-app payment requirements. Unlike these companies, however, Patreon has chosen not to confront Apple directly but instead to communicate the changes transparently to its user base, emphasizing that existing memberships and non-iOS platforms remain unaffected.
The transition could lead to significant friction between creators and their audiences, as well as between Patreon and Apple, especially if creators feel compelled to pass the additional cost onto their subscribers. This situation highlights the ongoing debate over the fairness and impact of platform fees on digital creators, particularly in an environment where creators are already facing multiple layers of fees from different services。
Key Takeaways
- Introduction of Apple's 30% commission on Patreon iOS app memberships from November 2024
- Creators mandated to switch to Patreon's subscription billing method for continued earning via the iOS app
- Patreon offers creators the option to increase prices on the iOS app to offset Apple's fees
- Existing Patreon subscriptions and memberships on the Android or web platform are exempt from the new fee
- Some creators have the opportunity to postpone the billing method transition until November 2025, albeit at the cost of iOS app sales
Analysis
Apple's imposition of a 30% commission on Patreon iOS app memberships places pressure on creators, who may either transfer costs to patrons or experience revenue loss. This change, driven by Apple's stringent App Store policies, has notable implications for Patreon's business model and creator earnings. In the short term, creators encounter financial strain, while in the long term, they may explore diversifying income sources or shifting to platforms with lower fees. Additionally, this alteration might influence the strategies of other platforms in response to Apple's payment policies.
Did You Know?
- Apple's In-App Payment System: Apple's in-app payment system is a proprietary method that mandates all digital transactions within iOS applications to be processed through Apple's own payment infrastructure. This policy compels Apple to levy a 30% commission on all digital goods and services sold within apps available on the App Store, a subject that has sparked controversy and legal challenges due to its substantial impact on the revenue of app developers and content creators.
- Patreon's Subscription Billing Method: Patreon's subscription billing method refers to the system through which creators on the platform receive recurring payments from their patrons or subscribers. With the implementation of Apple's 30% commission on iOS app transactions, Patreon creators are now required to switch to this billing method to continue earning through the iOS app, potentially necessitating adjustments to their pricing structures.
- Digital Goods Commission: The term "digital goods commission" within the context of Apple's policies denotes the fee Apple charges for every digital item sold through its in-app payment system, encompassing in-app purchases, subscriptions, and exclusive content. The 30% commission significantly impacts the profitability of creators and developers, often prompting alterations to business models and pricing strategies to maintain revenue levels.