The recent announcement by Patreon regarding Apple’s decision to impose a 30% commission on in-app purchases has sent shockwaves through the creator community. This change will significantly impact how creators on the platform earn money through the iOS app.
Forced Usage of Apple’s In-App Payment System
According to Patreon’s post, Apple is giving creators no choice but to use the company’s in-app payment system, starting in November. Failure to comply with this requirement could result in Patreon being kicked out of the App Store.
Effect on Creators’ Earnings
The introduction of Apple’s 30% commission means that creators will now receive less money for their work when memberships are purchased or renewed through the iOS app. This additional fee will eat into the earnings of creators who rely on Patreon for their livelihood.
To help offset the impact of the new fee, Patreon will allow creators to automatically increase their prices on the iOS app. While this may help mitigate the financial burden, it ultimately puts creators in a difficult position of having to choose between absorbing the additional cost or passing it on to their supporters.
Historical Context
In the past, Patreon was able to avoid Apple’s commission by using alternative payment processors. However, starting in 2024, Patreon will no longer have this option and will be required to use Apple’s in-app payment system for all transactions.
Apple’s decision to enforce the 30% commission on Patreon memberships may stem from a desire to standardize payment practices across all apps on the App Store. By treating all transactions equally, Apple aims to create a level playing field for all developers.
Implications for Patreon and Its Creators
While existing subscriptions on Patreon will remain unaffected by the change, creators who rely on the iOS app to sell memberships will need to navigate the new fee structure. The additional cost could deter potential supporters from joining or renewing memberships, ultimately impacting the revenue stream for creators.
The introduction of Apple’s 30% commission on in-app purchases for Patreon memberships represents a significant challenge for creators on the platform. As they navigate this new fee structure, creators will need to evaluate their pricing strategies and consider how to best absorb or pass on the additional costs to their supporters.
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