Patreon allows creators to increase prices amid Apple's 30% tax

Patreon is allowing creators to increase their prices as Apple will be charging a 30% tax for Patreon memberships sold through the iOS ap.

This comes as Apple is requiring Patreon to switch over to Apple's in-app purchase system for all iOS transactions starting November or else risk being removed from App Store altogether. 

According to Patreon's official statement, Apple’s new policies will pose two major consequences for creators. First, Apple will apply its 30% App Store fee to all new memberships purchased in the Patreon iOS app and in-app creator purchases.

Second, as Apple's in-app purchase system only supports subscription-based billing, any creator currently on first-of-the-month or per-creation billing plans will have to switch over to subscription billing to continue earning in the iOS app.

As such, Patreon has built an optional tool that can automatically increase creators’ prices only in the iOS app, aiming to offset the cost of Apple's fee. “This way, you’ll continue to earn at least the same amount per membership as you do on all other platforms.”

Patreon also said it is working with creators who have already successfully navigated this process to make how-to videos, FAQs, and articles in its newsroom and help centre. 

Meanwhile, Patreon has clarified that Apple’s fee will only affect new memberships purchased in the iOS app from November onward but not creators’ existing members. It said in the post that a partner is forcing it into a change that it doesn't believe is best for creators. "Instead of helping creators move to subscription billing if and when they feel like it’s right for them, we’re now forced to migrate all creators on Apple’s timeline."

To help creators continue getting new members in the iOS app, Patreon said it has started a 16-month-long migration process to bring all creators onto subscription billing by November 2025. It will automatically switch creators over to subscription billing beginning in November 2024. “To be clear, this means that first-of-the-month and per-creation billing models will be discontinued in November 2025,” the post reads.

MARKETING-INTERACTIVE has reached out to Apple for a statement. 

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Patreon is a platform that enables creators such as video producers, podcasters, musicians, writers, and game developers, to build communities with their fans, share exclusive content. It aims to allow creators to monetise their work by offering paid subscriptions and access to their fans.

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