Patreon announced today that Apple will soon take a 30 percent cut of new subscriptions made through the iOS app.
This is because, according to Patreon, the app maker is under pressure from Apple to remove third-party payment options from its iOS application and use the iPhone giant’s in-app purchasing system instead. Either do what Cupertino says or risk having the software booted from the iOS App Store, it says.
Patreon offers fans the opportunity to subscribe to artists, podcasters, and other creatives and support them financially with monthly payments. The plans are set by the content creators in terms of cost and reward.
“Apple has its own payment system called in-app purchases and is requiring that Patreon use its in-app purchases payment system starting in November of this year instead of our payment and billing systems in the Patreon app,” Patreon CEO Jack Conte explained in a video. “If we don’t do that, Apple could kick us off the App Store, which would be terrible for the developers and for Patreon, since iOS is actually the most used platform for communities on Patreon right now.”
Apple told Patreon last year that it had to comply with the iOS platform’s rules, which included a requirement to use Apple’s billing system, and in January 2024, the app began charging a 30 percent fee on digital products sold through the Patreon iOS app.
Starting in November 2024, Apple will extend its 30 percent fee to subscriptions through the Patreon iOS app.
The result is that artists who use Patreon through the iOS app must raise their membership prices for new subscriptions (but not existing ones) to accommodate Apple’s 30 percent commission, or accept reduced revenue.
For example, a $10 monthly subscription through the Patreon website or Android app, which would generate $8.61 after deducting the current 8 percent platform fee and 2.9 percent plus a 0.30 percent payment processing fee, would only generate net proceeds of $6.20 if the customer used an iOS device and the creator who received the money paid Apple’s commission.
In this scenario, Apple’s $3.00 fee, which includes payment processing, is almost four times higher than Patron’s $0.80 platform fee.
To avoid this, Patreon has developed a widget that allows developers to increase the price of subscriptions in the iOS app only to offset Apple’s fee. This service is already available for digital goods sold through the iOS app. So a $10 monthly subscription in the iOS app could be set to a list price of $14.50 to cover Apple’s share.
In this scenario, Apple receives $4.35 while Patreon receives $1.16 per month.
The November change also eliminates two alternative billing options: first-of-the-month billing and per-creation billing. Apple only supports subscription billing, which repeats one month after the first subscription date.
According to the app developer, this is the model that most subscription providers currently use. However, those who still rely on alternative billing models (e.g. those who create content irregularly) will no longer be able to add new members in the iOS app from November until they implement subscription billing.
Pateron said it will help creatives make the transition by November 2025.
Apple did not respond to a request for comment.
In a post on Mastodon, Casey Liss, an iOS developer and podcaster, wrote: “This is so disgusting. When will Apple finally realize that rent-seeking anywhere, anytime not only paints a bad picture, but leads them straight to hell through regulation? (And at this point, it’s more than deserved. Go ahead.)”
Governments around the world are already using this strategy, but without much success. Apple was sued by the US Department of Justice in March for alleged anti-competitive behavior. Among other things, the Department of Justice accuses Apple of using contract terms to force app makers to pay fees while denying them competitive alternatives.
The court filing states: “At its core, Apple’s smartphone business model involves inviting as many participants as possible, including iPhone users and third-party developers, to participate in its platform while using contract terms to force those participants to pay significant fees. At the same time, Apple limits the ability of its platform participants to negotiate or compete to lower its fees through alternative app stores, in-app payment processors, and more.”
And last week, Apple unveiled a new plan to comply with the EU’s competitive Digital Markets Act after its first attempt fell short. iBiz also had to adapt to competition from app stores in Japan and third-party payment options in South Korea. ®
