Recently, Patreon announced that memberships sold on their iOS app will soon be subject to Apple’s 30 percent commission on in-app purchases. This means that creators will be receiving less money for their work, as Apple’s commission will apply when a new membership is initially purchased, as well as each time it’s renewed. The change will come into effect starting November 4th, 2024.
To help offset the costs of the new fee, Patreon will allow creators the option to automatically increase their prices within the iOS app. This means that new transactions in the Patreon iOS app will be more expensive than the same purchase on the web due to Apple’s App Store Fee. This move could potentially deter new members from joining or cause creators to lose existing members who are unwilling to pay the higher fees.
Implications for Creators
With Patreon already having its own set of platform fees, the addition of Apple’s 30 percent commission will have a significant impact on creators’ earnings. This means that creators will have to decide whether to absorb the Apple App Store Fee themselves or pass it on to their subscribers. Ultimately, this could result in creators earning less money for their content and may lead to a shift in how they approach their membership pricing and strategies.
Up until this year, Patreon had been able to avoid Apple’s 30 percent commission by using alternative payment processors. However, in 2021, Patreon CEO Jack Conte mentioned that they do not have a special contract with Apple and have had to adhere to the App Store policies like any other company. Apple’s decision to enforce their commission on Patreon memberships sold through the iOS app could be seen as a way for the tech giant to increase its revenue from digital goods.
Creative Alternatives
In response to the new policy, creators may need to explore alternative platforms or payment methods to retain a larger portion of their earnings. It may also prompt creators to focus more on selling memberships through Patreon’s website or Android app, where the 30 percent commission does not apply. This shift could lead to a potential loss of revenue for Apple as creators seek out more cost-effective ways to monetize their content.
Apple’s 30 percent commission on Patreon memberships sold through the iOS app will have far-reaching implications for creators. The increased fees could impact the sustainability of creators’ businesses and force them to rethink their pricing strategies. As the digital landscape continues to evolve, creators will need to adapt to these changes and find innovative ways to continue monetizing their content effectively.
Leave a Reply