Apple has once again stirred the pot with its latest App Store policy updates, this time casting a shadow over Patreon and its community of creators. Here’s what you need to know about the recent developments and how they could impact your subscription-based content.
The move to Apple’s in-app purchase system
Apple has announced that Patreon must switch to its in-app purchase system or risk being removed from the App Store. This shift is part of a 16-month plan that will require all creators using Patreon on iOS to use Apple’s payment system by November 2025. Apple’s in-app purchase system takes a cut of each sale, usually 30%, but sometimes less, depending on the situation.
If you’re a creator, this means Apple will take a percentage of your subscription fees if you use their system. This could increase the cost for your subscribers or lower your earnings.
Changes to subscription billing
Starting in November 2024, Patreon will switch all creators to subscription billing. This means you’ll have two choices:
You can raise your subscription fees to cover Apple’s commission. This might help keep your earnings steady but could make your subscriptions more expensive for your fans. Alternatively, you can choose to absorb Apple’s fees yourself. This keeps subscription prices the same but will reduce how much you earn per subscriber.
Options for delaying the change
If you’re not ready to switch by November 2024, you can delay until November 2025. However, if you choose to delay, you won’t be able to offer memberships through the iOS app until you follow Apple’s new rules. This means you’ll need to direct subscribers to other platforms or methods for managing their memberships.
Delaying gives you more time to adjust your pricing and business model. But, it also means you might lose out on subscribers who prefer managing their memberships through the iOS app.
The bigger picture
Apple’s new rules highlight ongoing issues with how its App Store policies are enforced. Critics, including Epic Games, have accused Apple of unfairly applying its rules. Although Epic lost its lawsuit against Apple, it allowed Apple to offer some alternative payment methods with reduced commissions.
Now the District Court’s injunction against Apple’s anti-steering rule is in effect, and developers can include in their apps “buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to IAP”.
— Tim Sweeney (@TimSweeneyEpic) January 16, 2024
You need to be aware of these shifting rules as they can impact your business. Apple’s policies can change how you manage subscriptions and interact with your audience.
What should you do if you use Patreon?
Here are some steps to help you handle these changes:
- Review your pricing: Look at how Apple’s commission might affect your earnings and decide if you need to adjust your subscription prices.
- Inform your subscribers: Make sure your subscribers understand the changes and how they might impact their subscriptions. Point them to resources that explain the new fees.
- Consider other income sources: Think about finding other ways to earn money to offset the impact of higher fees.
- Stay updated: Keep track of any further updates from Apple and Patreon to stay on top of policy changes.
Patreon’s new requirements reflect broader challenges in the app market. Staying informed and adaptable will help you navigate these changes and continue to manage your subscriptions effectively.
