Content creators rely on Patreon for extra income, motivating them to continue churning out high-quality consumable media. However, with Apple’s new requirements, things are going to get a little dicey. The monetization platform made an announcement today, saying that the technology giant is now forcing it to start paying a 30 percent cut on not just every in-app purchase but for new memberships too. Patreon has voiced its concerns in the latest announcement and is letting creators know it is not giving up on them.
Failure to comply with Apple’s requirements until November means an immediate de-listing of the Patreon app from the iOS App Store
The new changes require creators to switch to Patreon’s subscription billing method to keep earning money through the platform’s iOS app. Apple has pretty much forced the company into a corner, giving them an ultimatum to use its in-app payment system in November or risk being removed from the App Store altogether. This means that Apple’s 30 percent cut will be applied every time a new membership is purchased and every time it is renewed.
“Patreon exists to let creators make what they love for their biggest fans, and earn an income doing it on their own terms. Everything we build is to make those two things easier for creators. For you.
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 – and their in-app purchase system is not built with our same level of creator-first flexibility.”
To help offset some of the losses the creators are expected to endure in the coming weeks, Patreon says that they can automatically increase their prices in the iOS app. Apple’s 30 percent fee will only be applicable to new memberships purchased through the iOS app starting November 4, with previous memberships remaining unaffected by the changes. Unfortunately, Patreon already gets a cut of what creators earn, and with Apple’s commission now coming into play, it means fewer earning opportunities for talented and hard-working individuals.
Tim Sweeney, founder and CEO of Epic Games, noticed Patreon’s announcement and took no time taking a jab at Apple, saying that the ‘digital world cannot go on like this.’ Patreon has offered another alternative to creators besides raising their fee: encouraging their fans to use its web page or Android device or make purchases to avoid paying Apple’s 30 percent cut. Whether or not this will result in dire consequences is another story, but at least it signals that Patreon is not being a typical corporate overload by taking every penny earned by creators.
The monetization platform keeps anywhere between 8-12 percent of paid membership subscriptions, along with payment processing fees. An additional 5 percent is collected from digital product sales.
News Source: Patreon
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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