In a move that's set to shake up the creator economy, Apple is requiring Patreon to adopt its in-app purchase system for iOS devices. This change, slated to take effect in November 2024, will see Apple collecting a 30% commission on new memberships purchased through the Patreon app on iPhones and iPads.
The Impact on Creators and Subscribers
Patreon, a platform that allows content creators to receive financial support from their audience, has been directed to integrate Apple's in-app purchase system. This integration will affect how new memberships are processed and priced on iOS devices.
To address the 30% fee imposed by Apple, Patreon is offering creators two options:
- Increase membership prices specifically for iOS users
- Maintain current pricing across all platforms and absorb the fee
Patreon recommends the first option, as maintaining current prices would result in reduced earnings for creators on iOS transactions.
Changes to Billing Models
The shift to Apple's in-app purchase system also necessitates changes to Patreon's billing models. Currently, Patreon offers flexible payment options such as per-creation billing and first-of-the-month billing. However, these models are not compatible with Apple's system.
As a result, Patreon plans to transition all creators to a subscription billing model by November 2025. This change will primarily affect creators using non-subscription billing methods.
Comparing Fees
It's worth noting that Apple's 30% commission significantly exceeds Patreon's own fee structure. Patreon typically retains between 8% and 12% of paid membership subscriptions, plus payment processing fees. For digital product sales, Patreon collects a 5% fee.
After a subscription reaches one year, Apple's commission will decrease to 15%, aligning with their standard practice for long-term in-app subscriptions.
Patreon's Response and Recommendations
Patreon states that compliance with Apple's requirements is necessary to maintain their presence on the App Store. To help creators navigate these changes, Patreon suggests encouraging fans to subscribe via web browsers or Android devices, thereby avoiding the increased iOS fees.
As the landscape of digital content monetization continues to evolve, this development marks a significant shift in the relationship between content platforms, creators, and app store policies.