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Apple Hits Patreon With 30% Fee, Forces Change Of Billing Systems

Creator platform Patreon announced significant changes to its iOS app due to new Apple requirements. 

Starting in November 2024, Apple will mandate that Patreon use its in-app purchasing system and remove all other billing systems from its iOS app.

The shift has two major implications for creators. 

First, Apple will apply a 30% App Store fee to all new memberships purchased through the Patreon iOS app and any items bought in Patreon’s shop. 

Second, creators using first-of-the-month or per-creation billing plans must switch to subscription billing to continue earning through the iOS app.

To mitigate the impact of Apple’s fee, Patreon introduced an optional tool that automatically increases prices only in the iOS app. 

This adjustment ensures creators earn the same amount per membership as other platforms. Alternatively, creators can maintain current prices and absorb the 30% fee from their earnings.

The changes do not affect existing members or prices on web and Android platforms.

Patreon’s Response

Patreon is initiating a 16-month migration process to transition all creators to subscription billing by November 2025. This move is instigated by Apple’s in-app purchase system, which only supports Patreon’s subscription billing model.

Patreon creators using first-of-the-month billing will be automatically switched to subscription billing starting November 2024, with an option to delay until November 2025. 

Per-creation billing users can maintain their current model until November 2025 but cannot acquire new iOS app memberships from November 2024 unless they switch to subscription billing.

Patreon emphasized that these changes are mandated by Apple, stating that non-compliance risks removing the entire app from the App Store. 

The company is focusing resources on enhancing the subscription billing experience and providing support to creators through various channels, including how-to videos, FAQs, and community discussions on Discord.

Apple has faced criticism in the past, including a lawsuit from Fortnite maker Epic Games over antitrust issues. 

Epic lost the lawsuit, as the court ruled Apple was not a monopolist. However, it decided that the tech giant would have to allow links to other payment options inside its apps.

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David Adler is an entrepreneur and freelance blog post writer who enjoys writing about business, entrepreneurship, travel and the influencer marketing space.

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