Patreon Forced to Adopt Apple's App Store Billing
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In a move that has sent ripples through the creator economy, Apple is reportedly requiring Patreon to switch to using Apple's in-app purchase system for iOS subscriptions. This change could have significant implications for independent creators who rely on the platform to monetize their work.
According to discussions on a recent episode of Tech News Weekly, Patreon has been operating in a "gray area" regarding Apple's App Store policies. While the platform facilitates subscriptions and memberships through its iOS app, it has not been subject to Apple's standard 30% cut of transactions. That's about to change.
The shift to Apple's billing system means that creators on Patreon may need to pass on the additional cost to their subscribers, potentially raising prices for iOS users. This puts creators in a difficult position, as they must either absorb the cost themselves or risk losing subscribers due to higher prices.
Dan Moren, guest host on the show, pointed out the challenges this presents: "If you're an independent creator and you are making art or you're making books or podcasts or videos or what have you, all of a sudden you have to tell people essentially that if they are going through iOS, they may have to pay more than if, they, say, went directly to the Patreon website."
The situation is further complicated by Apple's restrictions on directing users to external payment methods. Apps are not allowed to inform users that they can subscribe at a lower cost outside of the App Store, limiting creators' ability to offer alternatives to their audience.
This move by Apple has been met with criticism, particularly given the company's image as a supporter of creative endeavors. It follows other recent controversies, such as an iPad ad that some creators felt devalued their work.
The hosts also discussed the broader implications of Apple's dominant position in the mobile market. With iOS and Android effectively controlling the entire smartphone ecosystem, creators and developers find themselves with little choice but to comply with platform policies, even when they feel unfair.
As Patreon prepares to implement these changes, including a shift to subscription-based billing for all creators on iOS, the tech community watches closely. This development raises questions about the power dynamics between large tech platforms and the independent creators who rely on them, as well as the long-term sustainability of current app store models. For now, creators and their supporters are left to navigate this changing landscape, hoping for a resolution that balances platform policies with the needs of the creative community.
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