Apple Asks Patreon to Apply 30% Fee on In-App Purchases for iOS App

More popular in the United States than in France, Patreon is an application that allows content creators (artists, musicians, writers, YouTubers, podcasters, etc.) to receive financial support directly from their community of fans. The principle is the same as platforms like OnlyFans or Mym, creators post exclusive content and subscribers who pay a monthly renewal subscription can access this content. Patreon is today called to order by Apple, the Cupertino firm asks Patreon to apply the 30% commission of the App Store on in-app purchases.

Subscriptions that may increase in price (decision of the content creator)

In line with Apple’s strict policies regarding in-app purchases via iOS apps distributed on the App Store, Patreon must now adjust the fees applied to new subscriptions. This change only applies to users who subscribe via iPhone or iPad, starting in November 2024.

Apple’s in-app purchase system, well-known for its 30% commission, will now be mandatory for all new Patreon memberships made on iOS or iPadOS. This commission, considered by many to be excessive and abusive, is imposed by Apple on any digital transaction made within an application available on its App Store. After a year of subscription, this fee decreases to 15%, in line with Apple’s standard policy.

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Content creators will have to make a choice

Faced with this new situation, creators on Patreon must make a crucial choice as quickly as possible. They can either:

  • Raise their prices on the iOS app to offset the 30% fee
  • Choosing to take care of them themselves, which would reduce their income.

Patreon strongly recommends that creators do the former, which is to increase their subscription rates, in order to keep their net revenues unchanged. Patreon, on the other hand, consistently refuses to take on any portion of the 30% App Store commission.

To minimize the impact of the 30% fee, Patreon advises creators to encourage their fans to sign up for their memberships via the web or on Android devices, where these additional fees do not apply. This strategy is intended to protect both creators’ revenue and their subscribers’ budgets.

If Patreon does not comply with Apple’s requirement for in-app purchases for all transactions on iOS, the platform risks being removed from the App Store. This threat weighs heavily on Patreon, as an absence from the App Store could result in a significant loss of visibility and revenue. Of course, there is now distribution via third-party stores, but the visibility compared to the App Store is ridiculous, plus this only concerns Europe, as the distribution of apps is not open beyond European borders.

Source

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