Elon Musk and Tim Sweeney bash Apple App Store fee as Patreon creators are slated to make less on iOS than Android

Patreon, the viral tool that allows creators like YouTubers to offer paywalled digital products, has announced that Apple will charge a 30% App Store fee on in-app purchases made inside the iOS app after November 4. This follows from an announcement from December 2023which informed the user base that Apple is requiring the service to use Cupertino’s in-app purchasing system for processing payments and the change will be implemented in the coming months.

In a blog post, Patreon has now confirmed that after November 4 new memberships will be charged a 30% App Store fee in the iOS app. Since Apple’s in-app payment system only supports subscription billing, creators using the first-of-the-month or per-billing plans will be forced to move over to the subscription billing if they want to keep in-app purchases on iOS.

Patreon explains that these changes have been forced on the service by Apple and if the company doesn’t comply, Patreon’s iOS app will be delisted from the App Store. So, creators who don’t like these changes will have to ask members for payments using Patreon’s website and/or the Android app.

Patreon memberships will possibly get more expensive for iOS users

Since creators on Patreon will have to pay a 30% App Store fee on new memberships on iOS, creators will have two choices:

1. Offload the 30% burden to members so they pay more on iOS
2. Take the 30% hit themselves and make less money

Patreon has announced that, after November 4, the former will be the default option inside the iOS app so creators make the same money as before. However, creators can also choose to keep the membership price the same and pay the 30% out of their own pocket.

To show the impact of both scenarios, Patreon demonstrated the impact of the 30% App Store fee on a $10 sales price on both Android/Web and iOS in an older post. In the example, creators that get paid on Android/Web will make about $8.66. Those who receive their membership fees on iOS without passing the 30% fee on to the members will receive only $6.20. Finally, creators wishing to keep their earnings the same will have to charge fans $14.50 on iOS.

All in all, the upcoming changes will certainly hit the creators hard one way or the other. While increased prices will ensure earnings don’t take a hit, they will undoubtedly reduce the number of new memberships on iPhones and iPads (Buy the iPad Air on Amazon).

Tim Sweeney and Elon Musk bash Apple

Tim Sweeney, CEO of Epic Games, has been in a fight with Apple since 2020 when the company removed Fortnite from the App Store following Epic’s effort to bypass Apple’s in-app payment system. Commenting on Patreon’s announcement on X, Tim Sweeney called the 30% App Store fee “junk”. He further exclaimed in a separate post that “Apple must be stopped” and “the digital world cannot go on like this”.

Replying to Tim Sweeney’s remarks, Elon Musk also took a jab at Apple and called the move akin to “taking money from street musicians”.

Now Apple is demanding a 30% cut of all Patreon DONATIONS. Apple must be stopped. The digital world cannot go on like this. https://t.co/oGE6eU99hm

— Tim Sweeney (@TimSweeneyEpic) August 12, 2024

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