Starting November 2024, Patreon creators and their supporters will face significant changes due to Apple’s latest requirements. The tech giant is mandating that all iOS transactions on Patreon use Apple’s in-app purchase system. This change could lead to a 30% App Store fee on all new memberships bought via the iOS app. Patreon’s creator-focused platform, designed to empower artists to earn on their own terms, now faces a pivotal challenge. Let’s dive into the implications and what creators can do to adapt.
Understanding Apple’s Mandate
Apple’s In-App Purchase System and Its Impact on Patreon
Apple’s directive requires Patreon to remove all other billing systems from its iOS app and switch entirely to the Apple in-app purchase system by November 2024. The consequences are two-fold:
- App Store Fee: A 30% fee will be applied to all new memberships purchased in the iOS app, impacting creators’ earnings.
- Billing Model Change: Creators using the first-of-the-month or per-creation billing will need to switch to subscription billing, as it is the only model supported by Apple’s system.
Impact on Existing Memberships
Existing memberships will remain unaffected by Apple’s fees. However, new memberships purchased through the iOS app post-November will incur the 30% fee, raising concerns about earnings stability and business growth.
To help creators mitigate the impact of the 30% App Store fee, Patreon has developed a tool to automatically increase prices on the iOS app. This allows creators to maintain their current earnings without reducing the value of their membership offerings.
Key Actions for Creators:
- Price Adjustment: Creators can opt to increase prices automatically in the iOS app to cover the fee.
- Maintain Prices: Alternatively, creators can choose to absorb the fee, though this is not recommended as it reduces earnings per membership.
These changes apply solely to the iOS app. Membership pricing on the web and Android apps will remain unaffected, giving creators flexibility in managing their revenue streams across platforms.
Apple’s billing requirements force all Patreon creators to switch to subscription billing. This move aligns with Apple’s system, which only supports subscription-based transactions. Creators currently using first-of-the-month or per-creation billing must migrate to subscription billing by November 2025 to avoid being locked out of the iOS app.
Migration Timeline and Support
Patreon is implementing a 16-month migration process, offering tools and features to ease the transition:
- Automatic Migration: Creators on first-of-the-month billing will be automatically switched to subscription billing by November 2024, though they can delay this until November 2025.
- Per-Creation Billing: Creators using per-creation billing will receive one-on-one support for their migration, allowing them to maintain their current model until the 2025 deadline.
The Bigger Picture: What This Means for Patreon’s Future
While the changes imposed by Apple are significant, Patreon is committed to supporting creators through this transition. The platform is enhancing its subscription billing model to offer a better experience, ensuring that creators can continue to grow and succeed despite the challenges.
Community and Resources
Patreon is rallying its creator community, offering resources such as how-to videos, FAQs, and articles. The platform is also hosting discussions on Discord for creators to share tips and best practices.
Conclusion: Moving Forward Together
Though Apple’s requirements present hurdles, Patreon is dedicated to navigating these changes with transparency, control, and stability. By preparing now, creators can continue to thrive, adapting to new circumstances while maintaining their artistic freedom and financial stability.
