Users who pay Patreon creators on their Apple devices may be faced with increased costs. (CBC)
Starting in November 2024, content creators using Patreon may face higher costs for their supporters due to a new fee imposed by Apple. The tech giant will take a 30 percent cut from transactions made through the Patreon app on iOS devices, such as iPhones and iPads.
Patreon, a platform that allows creators to charge for access to their content—whether it's podcasts, music, comics, or physical merchandise—has previously not been subject to this fee. Apple’s new policy requires Patreon to pay this fee on any new memberships or purchases made through its iOS app, though existing memberships are not affected.
In response, Patreon is working to minimize the impact on creators' earnings. The platform plans to implement automatic price adjustments within the iOS app to offset the fee. However, Patreon has advised creators that they should consider increasing their prices to cover the new cost, as the 30 percent fee will reduce the amount they take home.
This decision has sparked frustration among some Patreon users. Ernie Smith, editor-in-chief of the tech newsletter Tedium, expressed his discontent with Apple, suggesting that Patreon should consider moving away from the Apple ecosystem entirely and processing payments through its website instead.
Craig Baird, a podcast producer from Edmonton, is also concerned about the potential price hike for his supporters. Although his podcast, Canadian History Ehx, currently charges $3 a month, he worries that this increase may seem unfair since no changes have been made to his content or Patreon’s services.
The exact impact of these price increases is still unclear, as Patreon has not disclosed how many users pay through the Apple app. The rules of the App Store might prevent creators from informing their audience about cheaper alternatives outside the iOS app.
Industry experts note that app developers have limited options but to comply with such fees if they want to reach iPhone users. Mohammad Keyhani, an associate professor at the University of Calgary, highlights the challenges faced by developers who must "pay these taxes" to platform owners like Apple. Legal battles between Apple and other companies, such as Epic Games, have shown that while courts may limit Apple's control, the tech giant often adjusts its fees in response.
Tech analyst Carmi Levy points out that while there is growing concern about how tech giants regulate app marketplaces and payment methods, Canadian authorities may be slow to respond. He notes that creators who rely on platforms like Patreon must accept the rules set by major companies like Apple, regardless of their concerns.
As the situation develops, creators and their supporters will need to navigate the changes and adjust to the new financial landscape shaped by Apple's policies.
