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Patreon Makes Major Changes to iOS App: New Subscriber Fees Increase

Mobile Internet 2024-08-13 21:14:45 Source:

Patreon Makes Major Changes to iOS App: New Subscriber Fees IncreaseThe paid creator community Patreon has recently announced significant changes to its iOS app, including increased subscription fees for new users. This change stems from Apple's enforced App Store rules, which require Patreon member subscriptions to be completed through in-app purchases, forcing the platform to pay a 30% commission to Apple

Patreon Makes Major Changes to iOS App: New Subscriber Fees Increase

The paid creator community Patreon has recently announced significant changes to its iOS app, including increased subscription fees for new users. This change stems from Apple's enforced App Store rules, which require Patreon member subscriptions to be completed through in-app purchases, forcing the platform to pay a 30% commission to Apple.

Starting this November, all new member subscriptions must be made through App Store in-app purchases. This change only affects new members purchasing through iPhones or iPads after November; existing subscribers are not impacted.

Patreon will automatically increase subscription prices on the iOS platform by default, but creators have the option to maintain the original prices. Due to the lack of flexibility in the App Store in-app purchase system, Patreon will transition all creators to a subscription model, expected to be completed by November 2025.

 Patreon Makes Major Changes to iOS App: New Subscriber Fees Increase

To address this additional cost, Patreon offers creators two options:

  • Increase subscription prices within the iOS app: Creators can choose to raise subscription prices within the iOS app to offset the 30% commission Apple takes.
  • Bear the cost themselves: Creators can choose to bear the 30% commission from Apple themselves, maintaining consistent cross-platform pricing.

Apple has a tiered pricing policy for subscription services, reducing the commission from 30% to 15% after one year. However, even at 15%, Apple's commission remains higher than the percentage Patreon receives from creators. Patreon takes an 8% to 12% cut from paid member subscriptions, plus payment processing fees, and a 5% cut from digital goods sales.

Apple has been tightening its control over digital goods. In the past, the company required Facebook to pay in-app purchase fees for ad purchases on iOS devices. This indicates Apple's active pursuit of a larger share of digital goods sales, placing greater pressure on platforms and creators.

Patreon encourages creators to direct fans to help center articles that explain the fee differences across platforms, mitigating user complaints.

What does this adjustment mean for Patreon and creators?

  • For creators, they face a choice: Raise iOS subscription prices or bear the cost. Both options could potentially impact creator income.
  • For the Patreon platform, they need to balance the interests of creators and users: They need to ensure creators can continue generating revenue on the platform while avoiding user churn due to price increases.
  • For users, they may face higher subscription fees: Especially those using iOS devices.

Patreon's adjustments reflect Apple's dominant position within the App Store ecosystem and highlight the challenges platforms and creators face in monetizing. As Apple tightens control over digital goods, platforms and creators need to actively seek new monetization models to adapt to the evolving market landscape.

Tag: Patreon Makes Major Changes to iOS App New Subscriber


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