Patreon Forced by Apple to Use In-App Purchases, Handing Over a 30% Cut
The highly popular content creator sponsorship platform Patreon, which has long avoided paying a commission on iOS as it did not require payments through the in-app purchase system, has seen a change. It was unclear what agreement allowed Patreon to bypass the in-app purchase system, but Apple has now demanded that Patreon use Apple's in-app purchase system and pay a 30% commission. Failure to comply could result in Apple removing the app for violating developer guidelines.
Patreon has already notified its content creators:
Unfortunately, Apple requires us to switch all iOS transactions to the Apple in-app purchase system, or we risk being expelled from the AppStore.
This directive has two significant impacts on creators:
- In addition to any goods purchased in the Patreon store, Apple will take a 30% cut of new memberships purchased through the app on iOS.
- Creators who currently bill monthly or per creation must switch to a subscription model to continue earning through the iOS app, as it is the only billing type compatible with the Apple in-app purchase system.
The new policy, effective from November 2024, means that creators will see a significant decrease in actual earnings due to Apple's 30% commission. To compensate, creators might need to pass this cost onto the users. Consequently, Patreon is introducing an automatic price increase plan that adjusts prices to include the 30% commission, ensuring creators receive the same income as before.
Existing Patreon subscription members will not be affected, as they have already paid 100% of their fees, allowing creators to receive the full amount. However, starting in November, any new or renewing users must pay through the IAP system, resulting in creators receiving only the post-commission amount.
Users can still make payments through other platforms, such as the web version, which is expected to maintain its original price, potentially saving money for both users and creators compared to the likely higher prices of the Patreon iOS app version.