Apple's New In-App Purchase Rule Forces Patreon Creators to Adapt or Lose Revenue
August 13, 2024Starting in November 2024, Apple will require Patreon to use its in-app purchase system for all transactions on iOS, threatening removal from the App Store for non-compliance.
As a result of this change, creators will need to either raise their iOS subscription prices to cover Apple's 30% fee or absorb the cost while maintaining consistent pricing across platforms.
The 30% commission will apply to both initial membership purchases and renewals, potentially decreasing to 15% after one year.
Importantly, existing memberships will remain unaffected by these new requirements, with the fees applying only to new memberships purchased after the implementation date.
Despite a recent lawsuit, Apple was not deemed a monopolist but must allow links to alternative payment options within apps, which feature varying commission rates.
Patreon clarified that the new fees will only impact the iOS app, allowing creators to maintain the same pricing on their web and Android platforms.
Creators have the option to keep their current membership prices, but doing so would lead to a significant reduction in their earnings due to the 30% deduction.
The company reassured that existing members' earnings will not be affected by Apple's fees, which will only apply to new memberships starting in November 2024.
Patreon expressed dissatisfaction with Apple's enforcement timeline, stating that the forced migration to the new system is not ideal for creators.
To assist creators during this transition, Patreon will hold a Q&A session on Discord from August 12 to August 16.
Patreon emphasizes transparency and control, aiming to help creators navigate these changes while maintaining their earnings and business growth.
Summary based on 11 sources
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Sources
TechCrunch • Aug 12, 2024
Apple says Patreon must switch to its billing system or risk removal from App Store | TechCrunchThe Verge • Aug 12, 2024
Patreon memberships sold on iOS will soon face Apple’s 30 percent feeMacRumors • Aug 12, 2024
Apple Requiring Patreon to Use In-App Purchase and Pay 30% Fee for Memberships