Fanhouse rolls out 50% surcharge on in-app purchases, to offset 30% App Store fees

AppleInsiderAppleInsider
Posted:
in General Discussion edited January 2022
Content creator app Fanhouse, which protested the App Store's 30% commission in 2021, has introduced in-app purchases that include a 50% surcharge to compensate for Apple's cut.

Fanhouse app
Fanhouse app


Apple threatened to remove Fanhouse from the App Store in 2021 if it didn't bring its in-app purchases into compliance with its developer guidelines. The company on Wednesday announced its solution to that problem.

Fanhouse, an app that allows creators to earn money by offering exclusive content to paying subscribers, said that creator subscriptions are now only purchasable through in-app currency coins. The coins have a 1:1 conversion rate if bought on the web. If purchased in-app, they cost 30% more.

as a result of apple's b.s., we're releasing a currency on our mobile app called coins. implementing this was the only way we could stand by our creators & values without apple taking our app down.

here's how coins work, and how users can avoid apple's exploitative tax. (1/9)

-- fanhouse (@fanhouse)


Fanhouse said it "highly encourage[s]" users buy coins on the web, since it will "avoid the upcharge."

we know this sucks, but this was the best way to implement the change while staying on the app store. when we first surfaced the apple issue, we spoke to users and the majority said they want to continue having an app, and fans said they wouldn't mind a resulting surcharge. (7/9)

-- fanhouse (@fanhouse)


The company said the announcement of the new purchase model comes on the day that it would have been kicked off the App Store for noncompliance.

Back in June 2021, Fanhouse launched a campaign to protest Apple's cut of app and in-app purchases after the Cupertino tech giant threatened to remove it by the end of 2021 if it didn't come into compliance. At the time, reports indicated that Apple was working with Fanhouse on a solution.

In 2021, Fanhouse said that Apple's cut hurt content creators. The company even said it would be okay with Apple taking 30% of its own profits, but not the profits of creators on its platform. It's not clear how Apple taking 15% of revenue from a creator's first million in sales applies to the Fanhouse platform.

Fanhouse isn't the only company that has taken issue with Apple's App Store fees. The most notable critic has been Epic Games, which launched a lawsuit against Apple after baiting the company into removing "Fortnite" from the App Store. The court case largely came out in Apple's favor, but both Apple and Epic Games have appealed the judge's decision.

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Comments

  • Reply 1 of 11
    rob53rob53 Posts: 3,251member
    So when will Congress investigate these companies for doing same thing they say Apple is doing?
    edited January 2022 Beatsmagman1979williamlondonkillroyapplguy
  • Reply 2 of 11
    foregoneconclusionforegoneconclusion Posts: 2,684member
    So basically Fanhouse is complaining that Apple takes a 15% cut on top of Fanhouse taking a 10% cut. When you look at what Apple is providing for that 15% versus what Fanhouse is providing for 10%, I'm not sure what their complaint is about. You certainly can't argue that Fanhouse is doing more than Apple. 
    magman1979williamlondonkillroythtpscooter63
  • Reply 3 of 11
    magman1979magman1979 Posts: 1,293member
    Oh, so a scam app that gets gullible people to pay for garbage content created by scammer "influencers", wants to be greedy and take even more for itself?

    I'm shocked! /s

    GTFO Fanhouse, hope the door knocks you on your ass on the way out!
    williamlondonkillroydoozydozenpscooter63Beats
  • Reply 4 of 11
    afkpuzafkpuz Posts: 6member
    It’s ok to pay rent when you move into a building because the building provides value. 
    It’s ok to pay credit card fees per transaction because it creates value to accept credit cards.

    it’s ok to pay apple a fee per transaction because being available on the App Store creates value
    edited January 2022 williamlondonkillroyGabymagman1979Beats
  • Reply 5 of 11
    mknelsonmknelson Posts: 1,125member
    "here's how coins work, and how users can avoid apple's exploitative tax." And 50% isn't exploitative?  :D 
    williamlondonmagman1979
  • Reply 6 of 11
    larryjwlarryjw Posts: 1,031member
    I'm certain, Congress has no idea how businesses make money. 

    Every business along the supply chain takes a cut. Every business prices their product and service by how much their costs are, including the cuts their suppliers take, plus a take for their profit. 

    The problem with most suppliers is they give preferences to their biggest customers. For many companies the biggest customers often require a business to expend costs to support that bigger customer, which translates into the customer actually controlling the business -- the customer threatens to bail out leaving the business with capital costs they cannot pay off. 

    Apple seems to do that also. But it seems to a lesser extent. A 0%, 15%, 30% charge for everyone seems quite reasonable and equitably applied. Equitably applied means a company using Apple's services is not disadvantaged over their competitors. 

    The attacks on Apple's App services are nonsense from every angle. 

    edited January 2022 narwhal
  • Reply 7 of 11
    leavingthebiggleavingthebigg Posts: 1,291member
    Oh well, I expect to read an article about Fanhouse going out of business later this year.
    williamlondonmagman1979
  • Reply 8 of 11
    BeatsBeats Posts: 3,073member
    “As a result of apple’s b.s.”

    creating a platform and asking for a small cut?

    also I’m half asleep but they’re fighting against Apple’s 30% by charging an extra 50% instead?
  • Reply 9 of 11
    IreneWIreneW Posts: 303member
    Beats said:
    “As a result of apple’s b.s.”

    creating a platform and asking for a small cut?

    also I’m half asleep but they’re fighting against Apple’s 30% by charging an extra 50% instead?
    Do the math and you'll get it.
    williamlondon
  • Reply 10 of 11
    sconosciutosconosciuto Posts: 262member
    Beats said:
    “As a result of apple’s b.s.”

    creating a platform and asking for a small cut?

    also I’m half asleep but they’re fighting against Apple’s 30% by charging an extra 50% instead?
    to say this:

    The coins have a 1:1 conversion rate if bought on the web. If purchased in-app, they cost 30% more.

    another way, if you buy FanbaseCoin on the web, $10* gets you 10 FanbaseCoin. If purchased in-app, $13* gets you 10 FanbaseCoin.

    I thought that since forever, Visa etc. requires the businesses that accept their cards to not offer discounts for paying in cash instead. Did that change?

    If this is still the case, couldn't Apple do the same, and therefore kick apps off the App Store if they tried to do something similar?

    In any case, I am sure Apple has anticipated this and I'm eager to see their countermove.


    *presuming that they only accept USD to purchase FanbaseCoin.

    edited January 2022
  • Reply 11 of 11
    thinkman100000000thinkman100000000 Posts: 78member
    Another greedy Epic-style sham! Don't use any of their stuff, and will be certain to avoid them!
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