Apple forces Patreon to pay 30% of new memberships sold through iOS

Posted:
in iOS

Patreon is warning users that channel memberships bought via its iPhone app will shortly be subjected to Apple's 30% in-app payment fees.

Black square with a white vertical rectangle on the left and a white circle on the right.
Patreon logo



Patreon is a service that lets content creators have members who pay a subscription to receive exclusive content. Up to now, it has been able to do this via its iOS app without incurring Apple's regular fees.

In a blog post -- and now also emails to its users -- Patreon has announced that it is about to be forced to pay the 30% fee.

"Unfortunately, Apple is requiring us to switch over to their in-app purchase system for all iOS transactions or else risk being kicked out of the App Store altogether," writes the company, "and their in-app purchase system is not built with our same level of creator-first flexibility."

This is not the first time that Patreon has warned users the change is coming. It initially announced in December 2023 that Apple would be applying the fee to new memberships from November 2024.

"Before we go any further, we want to be crystal clear about one thing: Apple's fee will not impact your existing members," says the company. "It will only affect new memberships purchased in the iOS app from November onward."

As the November date approaches, Patreon has issued advice to its creator users on managing the change. Central to this is that if a creator on Patreon chooses to do nothing, the service will default to automatically increasing prices in the iOS app to compensate for the fee.

However, Patreon is also giving creators the option to keep their membership prices as they were, and instead absorb the fee. "We don't recommend this, because it means you'd earn less per membership on in-app iOS transactions," says the company, "but ultimately we believe it's important to give you agency to make your own decisions."

iOS app pricing options, includes option to cover Apple's fee by increasing prices, or keep prices same and earn less. Example: $14.50 for $10 purchase. Save button at bottom.
Patreon is now presenting creators with this option for increasing fees or absorbing Apple's charges



There's no change for existing memberships. Plus the change will only affect new members who sign up via the iOS app -- and previously Patreon CEO Jack Conte has said only "tiny portion of pledges" are made this way.

There's no obvious reason why Patreon hasn't always had to pay the App Store's regular 30% in-app purchase fee for its memberships. In 2021, Conte even said publicly that he didn't know why it was exempt.



Read on AppleInsider

Comments

  • Reply 1 of 15
    They should goto a mobile web app and give Apple nothing.
    neoncatgrandact73tiredskills9secondkox2williamlondonVictorMortimer
  • Reply 2 of 15
    danoxdanox Posts: 3,429member
    They should goto a mobile web app and give Apple nothing.

    Yes , Must treat everyone the same no special deals I thought that was what most people wanted no special treatment someone else said it better. See below….

    https://apple.slashdot.org/story/24/08/12/169246/apple-threatens-to-remove-patreon-from-app-store-over-billing-dispute


    by EMB Numbers ( 934125 ) on Monday August 12, 2024 @12:59PM (#64699194)

    If you use a credit card with Patreon, the credit card company takes a cut.

    If you use Patreon at all, Patreon takes a cut.

    If you use Apple's in-app purchases to fund Patreon, Apple takes a cut.

    SO DON'T USE APPLE'S In-App Purchases to fund Patreon. Was that difficult?

    Use the F-ing Patreon web page. Here you go: https://www.patreon.com./ [www.patreon.com] Now you are only paying the credit card company's fee and Patreon's fee.

    Bitching about Apple's services taking a cut is like bitching that the post office requires stamps on snail mail.
    Bitching about Apple's services taking a cut for in-app purchases is like bitching that restaurants have to pay rent to the building owner.
    Bitching about Apple's services taking a cut for in-app purchases is like bitching about paying shipping for online purchases.


    edited August 12 diman809secondkox2StrangeDayseriamjhwatto_cobratenthousandthingsbeowulfschmidt
  • Reply 3 of 15
    The beatings will continue until everyone pays the 30% fee.
    bobcat629secondkox2williamlondon
  • Reply 4 of 15
    danox said:
    If you use a credit card with Patreon, the credit card company takes a cut.
    If you use Patreon at all, Patreon takes a cut.
    If you use Apple's in-app purchases to fund Patreon, Apple takes a cut.

    Bitching about Apple's services taking a cut is like bitching that the post office requires stamps on snail mail.
    Bitching about Apple's services taking a cut for in-app purchases is like bitching that restaurants have to pay rent to the building owner.
    Bitching about Apple's services taking a cut for in-app purchases is like bitching about paying shipping for online purchases.


    Exactly
    9secondkox2watto_cobra
  • Reply 5 of 15
    I would be curious to see how many youtube channels that rely on Patreon will talk about this.
    dewme
  • Reply 6 of 15
    Weird how Apple never explained why Patreon was exempt for all these years.
    avon b79secondkox212Strangerswatto_cobra
  • Reply 7 of 15
    DAalsethDAalseth Posts: 3,059member
    I have no problem with Apple taking 30% of sales through the AppStore. They run the place, maintain the servers, check the apps for malware, they earn that cut. 

    I have thought from the very beginning that Apple demanding 30% of sales through apps just because they sold the app is wrong, greedy and corrupt. They have no business whatsoever demanding money from Patrion or any other vendor just because someone uses an app that at one time passed through their system. They have nothing to do with that sale and do not deserve a cent.

    This is why Apple is getting hammered with antitrust charges. If they had been less greedy in the past they would not be getting in trouble now. 
    nubuswilliamlondongatorguymuthuk_vanalingamh2pnmemacVictorMortimertokyojimu
  • Reply 8 of 15
    DAalseth said:
    I have no problem with Apple taking 30% of sales through the AppStore. They run the place, maintain the servers, check the apps for malware, they earn that cut. 

    I have thought from the very beginning that Apple demanding 30% of sales through apps just because they sold the app is wrong, greedy and corrupt. They have no business whatsoever demanding money from Patrion or any other vendor just because someone uses an app that at one time passed through their system. They have nothing to do with that sale and do not deserve a cent.

    This is why Apple is getting hammered with antitrust charges. If they had been less greedy in the past they would not be getting in trouble now. 

    I’ve probably misunderstood you, but would that mean if an app was free (or very cheap) and had in app purchases than Apple would get nothing (or very little) for their services.

    tmayStrangeDayswilliamlondonwatto_cobra
  • Reply 9 of 15
    I've been sending donations via Dogecoin for a couple of years now.

    I'm not a crypto fanatic.  I learned enough crypto to help put Patreon out of business.
  • Reply 10 of 15
    DAalsethDAalseth Posts: 3,059member
    DAalseth said:
    I have no problem with Apple taking 30% of sales through the AppStore. They run the place, maintain the servers, check the apps for malware, they earn that cut. 

    I have thought from the very beginning that Apple demanding 30% of sales through apps just because they sold the app is wrong, greedy and corrupt. They have no business whatsoever demanding money from Patrion or any other vendor just because someone uses an app that at one time passed through their system. They have nothing to do with that sale and do not deserve a cent.

    This is why Apple is getting hammered with antitrust charges. If they had been less greedy in the past they would not be getting in trouble now. 

    I’ve probably misunderstood you, but would that mean if an app was free (or very cheap) and had in app purchases than Apple would get nothing (or very little) for their services.

    You have it exactly right  Apple gets a cut of the purchase price of the app, and if it’s free they get nothing.  After that, if the sale does not go through Apple’s servers, Apple should not get a cut. The comparison I use is if Ford demanded 30% of all income from cab companies that used Ford cars. It is ludicrous.  Now if Apple wanted to put a minimum price, like 99 cents for apps that allow in app purchases, that’s fine. But as far as a cut of the sales after that, absolutely not.
    williamlondonmuthuk_vanalingamh2pVictorMortimer
  • Reply 11 of 15
    I'm perfectly happy to defend the 30% commission on app sales because the app store is a retailer so the 30% is nothing more than the traditional markup on a wholesale price.  just like every other retailer has.

    I'm also ok with charging that 30% in-app purchase on games since the content is a part of the app and is still being downloaded via apple and not the app owner's servers.

    This is different though and i *despise* nickel and dimeing iOS users like this.   Once you've downloaded the Patreon app no further content is downloaded via Apple's servers except for app updates.  I have no idea why anybody at Apple thinks it's okay to take a 30% commission on a Cameo message to my grandma from Steve Guttenberg just because i requested it in the app and not on the Cameo website?  A 30% cut on magazine subscriptions?  nope nope nope.  the content doesn't go through apple so they don't have a right to it.  


    gatorguyh2pnmemactokyojimugrandact73tenthousandthings
  • Reply 12 of 15
    StrangeDaysStrangeDays Posts: 13,111member
    DAalseth said:
    I have no problem with Apple taking 30% of sales through the AppStore. They run the place, maintain the servers, check the apps for malware, they earn that cut. 

    I have thought from the very beginning that Apple demanding 30% of sales through apps just because they sold the app is wrong, greedy and corrupt. They have no business whatsoever demanding money from Patrion or any other vendor just because someone uses an app that at one time passed through their system. They have nothing to do with that sale and do not deserve a cent.

    This is why Apple is getting hammered with antitrust charges. If they had been less greedy in the past they would not be getting in trouble now. 

    I’ve probably misunderstood you, but would that mean if an app was free (or very cheap) and had in app purchases than Apple would get nothing (or very little) for their services.

    Exactly, which is what people don’t seem to acknowledge. If IAP was free, all apps were cost $0 and charge IAPs. Doh
    12Strangerswilliamlondonwatto_cobra
  • Reply 13 of 15
    riverkoriverko Posts: 247member
    If Patreon gives 100% of the fan donations to the creators, as of current app store rules this is free of any Apple comission fee as far as i can remember. So it is only up to Patreon how they deal with the rule that has been in the force for quite a long time i’d say…
    12Strangerswatto_cobra
  • Reply 14 of 15
    DAalseth said:
    I have no problem with Apple taking 30% of sales through the AppStore. They run the place, maintain the servers, check the apps for malware, they earn that cut. 

    I have thought from the very beginning that Apple demanding 30% of sales through apps just because they sold the app is wrong, greedy and corrupt. They have no business whatsoever demanding money from Patrion or any other vendor just because someone uses an app that at one time passed through their system. They have nothing to do with that sale and do not deserve a cent.

    This is why Apple is getting hammered with antitrust charges. If they had been less greedy in the past they would not be getting in trouble now. 

    I’ve probably misunderstood you, but would that mean if an app was free (or very cheap) and had in app purchases than Apple would get nothing (or very little) for their services.

    Exactly, which is what people don’t seem to acknowledge. If IAP was free, all apps were cost $0 and charge IAPs. Doh
    Not sure who's not acknowledging that.  We just don't consider it to be a problem.

    Here's how it SHOULD work:

    Apple sells app in their app store:  Apple can charge whatever percentage they want.  1%, 15%, 30%, 95% - doesn't matter, they can set the rate in their store.

    User makes in-app purchase through Apple:  Apple can charge whatever percentage they want, subject to normal financial institution regulations.  They become a payment processor, they are subject to all appropriate regulations that any other payment processor has to deal with, and if they're not competitive (industry standard rates are typically less than 3%) then it would be insane for an app to use Apple payment processing.

    User makes in-app purchase through a different payment system:  Apple can't charge a penny.

    Developer sells app on their own website:  Apple gets ZERO PERCENT, and has no say whatsoever over the app.

    It's those last two things that Apple is abusing their monopoly to keep us from being able to do with our iDevices, and Apple's bad behavior needs to be stopped and they need to be punished.
  • Reply 15 of 15
    They should goto a mobile web app and give Apple nothing.

    The could do that, but if they're going to use Apple's infrastructure to take people's money, then Apple should be compensated for that.  I don't know why that's so hard for people to understand. 
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