Linked List: August 12, 2024

Monday, 12 August 2024

Nick Heer on Patreon Creators Paying the Full 30 Percent App Store Rate for New Subscriptions ★

Nick Heer, writing at Pixel Envy:

The 30% fee is also notable. As far as I can tell, only a handful of Patreon users would exceed the million-dollar annual threshold for Apple’s Small Business Program. That is, everyone who earns less than a million dollars per year through iOS Patreon pledges should, in theory, fork over a 15% commission rate to Apple. But it appears it is Patreon itself which is subject to the 30% rate. Whether that decision was made by Apple or Patreon, of if it is something which is a consequence of how App Store billing works, is unclear to me. But one thing is true regardless: Apple’s 30% commission is at least double the rate charged by Patreon itself, and only the latter has any material effect on the relationship between a creative professional and their supporters.

The problem here reminds me of e-books. There’s really only room for one middleman in a relationship between a creator and their audience, and in this case that middleman has been Patreon. But now Apple is saying they’re required to be involved too. But the Patreon app doesn’t qualify for the Small Business Program, so in-app subscriptions through the Patreon app are split 70/30 with Apple for the first year. But the vast majority of Patreon creators would, if they were app developers, qualify for the Small Business Program and the in-app subscription split would be 85/15 instead. But nobody wants each and every Patreon creator to build their own app. The whole point of Patreon is that it’s a centralized platform.

The whole notion of a platform like Patreon just doesn’t fit with the App Store’s model of taking a fee out of every single transaction for digital goods or services. It could, perhaps, if Apple were willing to only accept a commission from Patreon’s own share — a commission on a commission — but they’re not.

Lastly, I suppose it’s implicit here that a lot Patreon users go through the iOS app. But I can’t help but think they should do what Substack does and just not allow paid subscriptions through the app. I just double-checked this was still true, and it seems to be. Substack’s iOS app lets you subscribe only to free subscriptions in-app. If you tap “Manage Subscription” in the app, you’re presented with a sheet that says, unhelpfully, “You cannot manage your subscription in the app.” (It’s Apple’s odious anti-steering rules that disallow apps like Substack from explaining where you can manage your subscription, which, of course, is on the web.)

Correction: Turns out the Substack iOS app does offer in-app subscriptions, but only for subscriptions initiated in-app. What confused me above was that you can’t manage an existing subscription made on the web in the Substack app. See this post for more.

Patreon Had Spent a Decade in an App Store Gray Zone ★

Sarah Perez, writing for TechCrunch:

Despite Apple’s rules and policies, Patreon had existed in an odd sort of gray area, as some of its subscription-based offerings could be consumed in its app while others could not. Another possible reason for the Patreon exception was due to the fact that many users didn’t come to Patreon itself to discover creators and content, Patreon CEO Jack Conte told tech news site The Verge in 2021. Instead, the discovery took place through other channels. Though the company admitted it didn’t have any sort of special contract with Apple to avoid the App Store fees, the app had been able to skirt Apple’s in-app billing requirements for some time.

It wasn’t good that Patreon existed in an unofficial gray zone. But it’s hard to see how this is better for anyone, including Apple.

‘Apple’s Requirements to Hit Creators and Fans on Patreon’ ★

Patreon:

As we first announced last year, Apple is requiring that Patreon use their in-app purchasing system and remove all other billing systems from the Patreon iOS app by November 2024.

This has two major consequences for creators:

Apple will be applying their 30% App Store fee to all new memberships purchased in the Patreon iOS app, in addition to anything bought in your Patreon shop.

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, because that’s the only billing type Apple’s in-app purchase system supports.

Before we go any further, we want to be crystal clear about one thing: Apple’s fee will not impact your existing members. It will only affect new memberships purchased in the iOS app from November onward.

Patreon’s messaging on this change seems pitch-perfect to me. They’re not whining, they’re not calling for users to get their pitchforks out, but also, they’re making crystal clear that these changes, and the timeline for implementing them, are demanded by Apple — and that Patreon benefits from these changes not at all.

This might epitomize the way Apple can be penny-wise but pound-foolish when it comes to the App Store. However much money they think they might get from these Patreon subscriptions once the Patreon iOS app switches to IAP, I refuse to believe it’s worth the further degradation of Apple’s brand that this dispute with Patreon is incurring. The paying users of Patreon are fans. They are such dedicated and devoted fans of certain creators and artists that they choose to pay those creators money. And now these users are being informed that Apple is putting the squeeze on these creators and inserting themselves into a relationship that these fans see as being between them and the artists they support.

In some sense it’s fair that Apple is applying these rules to Patreon, because there are other Patreon-esque platforms, like Fanhouse, that have been required by Apple to use the App Store’s IAP all along. But the fans of Patreon creators aren’t going to see this as fair at all. How do you put a price on that goodwill? How do you put a price on the number of Patreon iOS users — who are all, by definition, Apple customers — whose view of Apple will shift from “Apple is a company that supports small indie creators and artists” to “Apple is a company that uses its position of power to extract exorbitant rent from small indie creators and artists” because of this change?

‘Objects of Our Life’ – Steve Jobs at the 1983 International Design Conference in Aspen ★

New from the Steve Jobs Archive: an hourlong video of young Steve Jobs delivering a talk on design in 1983. Jony Ive wrote a splendid introduction:

The revolution Steve described over 40 years ago did of course happen, partly because of his profound commitment to a kind of civic responsibility. He cared, way beyond any sort of functional imperative. His was a victory for beauty, for purity and, as he would say, for giving a damn. He truly believed that by making something useful, empowering and beautiful, we express our love for humanity.