People Make Games
patreon
Patreon, Apple & PMG
🕑 Added 2024-08-13 13:31:40 +0000 UTC
Hey everyone,
Patreon are making some changes to how the platform operates on iOS devices going forward and I wanted to quickly explain what that means for you, as well as a couple of knock-on effects it’ll now have for People Make Games as well.
And then finally, I want to end the post with a little bit about Big Tech in 2024, so that’ll be fun!
What’s happening?
You probably know that for most apps downloaded via the App Store, whenever a transaction takes place, Apple charges an additional 30% fee on top
This is why, for example, I can sign up to YouTube Premium on my PC right now for £12.99 per month, but if I try to sign up to the EXACT SAME SERVICE on my iPhone, it’ll cost £16.99 per month instead.
This is outrageously crap.
Anyway, up until this point, Patreon has been able to avoid this charge and Apple had allowed the platform to use its own payment infrastructure and therefore, not pay this 30% commission.
From November of this year, that will no longer be the case.
What does this mean for you?
If you don’t have an iOS device, or at least don’t use an iOS device to sign up to support Patreon creators, it’ll make no difference whatsoever.
Also, if you originally signed up via an iOS app, but you’re already an existing patron, you also won’t be charged anything extra. Nor will we!
However... if you sign up to become a patron via an iOS app from November 2024, a 30% fee will need to be paid to Apple. Now who covers that fee is up to each individual Patreon creator, as we can select for that to happen on our end, or for it to be added to the patron’s subscription.
In the case of PMG, we’ll be doing the latter, as that 30% difference would likely make our art print tier unsustainable, for a start.
However, what it should actually mean is this….
Never sign up to support Patreon creators via the iOS App. Do it literally anywhere else instead!!
You can still use the iOS app for its other features, but just don’t sign up there. Don't do it. Don't.
Also, this is a good rule to follow whenever you’re interacting with any kind of subscription service via an app on your phone. Always check if the price is different on a desktop machine, or even in your mobile browser instead.
What does this mean for People Make Games?
We’ll probably want to remind people to avoid signing up via iOS going forwards, which is aggravating, but there we are.
However, there are a couple of other things that are going to happen as a result.
You may have noticed that PMG’s Patreon was set up to only charge patrons at the start of the month, rather than charging you from the day you sign up and then repeating the payment on that same date each month, which is what most Patreon creators do these days.
We’ve liked this particular setup because it's meant that folks could sign up halfway through a month and then, if they change their mind, cancel the subscription before they’re actually charged.
Unfortunately, Apple has told Patreon that it’ll no longer support this kind of subscription model. In fact, unless all Patreon creators switch over to a setup in which patrons are charged on the date they sign up, they’ll pull the Patreon app from the App Store.
And so, everybody, People Make Games included, is being transferred to that subscription model going forwards. This will apply to all Patreon subscriptions, not just those that happen via an iOS app. Thanks Apple!
Again, if you’re an existing patron, nothing will change. You’ll continue to be charged at the start of the month instead.
One small benefit to us being forced to make this change, I suppose, is that we’ll now be able to activate the annual subscription feature on Patreon, which means patrons can sign up to an entire year of support at a discounted rate. We’ve not been able to activate this until now, while keeping the first of the month subscription model in place, so if that’s of any interest to you… you should now have access to that offer.
Technofeudalism
Okay, if you can’t tell by the tone of this post, I think Apple’s power in this dynamic is absolutely disgusting.
The idea that a 30% fee can be demanded because somebody happened to sign up to support PMG via an app on one of its devices is a total joke. What service is actually being provided here? Apple might argue that it’s valuable for its users to have a consistent experience when making payments on its hardware and that signing up to a gym membership or a Patreon subscription should feel exactly the same, with no need to input new payment details or worry about payment safety. Okay, sure, that may have a very small amount of merit to it. But 30%? THIRTY PERCENT?!
By comparison, People Make Games currently pays a 5% fee to Patreon from the income we receive here on this platform. There’s other bits on top of this that we need to cover as well, like payment processing fees and currency conversion, but Patreon essentially receives a flat 5% from us.
Comparing those two numbers is wild. They’re world’s apart.
Now this isn’t specifically a Patreon problem. Most companies that allow payments to happen via their iOS apps have been dealing with this for well over a decade. It’s the cost of doing business in these digital ecosystems in which we all live.
I should say, I’m directing my frustration at Apple here because this change has just been announced for Patreon specifically and we’re going to be affected by it. But don’t get me wrong, Android also charges a 30% fee for most of its apps too, but for now at least, that’s not the case for the Patreon app on Android. Perhaps that will change, we’ll have to see.
But the larger point is that these fees are absolutely everywhere! They exist on all the big digital platforms that we engage with. Steam is charging between 20 and 30% for games sold on its marketplace, Amazon usually charges around 15% for products sold through its platform, Uber takes a “service fee” of 20% from all its rides, although drivers claim the real cut is significantly higher when all their other mandatory expenses have been applied.
This concept is something that Greek economist Yanis Varoufakis describes as “Technofeudalism”. He argues that capitalism has quietly been replaced by a new era in which just a handful of Big Tech companies are able to collect huge sums from many of the transactions taking place in our daily lives, because their algorithm-driven, digital fiefdoms are so large and so all-encompassing that we have no choice but to interact with them. These companies may not actually create the end products being sold, but they’re still able to extract a huge portion of the profits, because they own the platforms where these transactions have to take place. They are, he argues, the modern day equivalent of feudal lords, but on a globe-spanning scale.
I don’t quite know how I feel about Patreon having bowed to the pressure of Apple in this case. There’s an argument to be made that having an iOS app just isn’t worth these outrageous fees and additional compromises. But it all speaks to the immense pressure that Apple is able to exert over the vast majority of companies. A small handful of Big Tech names have grown so large and so powerful that they’re able to make these kinds of demands without flinching because, where else are you going to go? If you’re not on their platforms, do you even exist?
Varoufakis’ book on this subject is really thought-provoking and I’d highly recommend it. Although perhaps proving its own point a little too well, the book is also available to purchase from Amazon.com, where Jeff Bezos will happily take his 15.3% fee for each copy sold, plus an additional “closing fee” of £0.50.
TEAR IT ALL DOWN.
-Chris
Comments
Mark Fajfar
I can't see if others suggested this, but you should open up a Ko-Fi account. Your fees are lower there, and I would happily switch. While it's available only on desktop so you would avoid the outrageous store fees.
Benjamin
Ooof if this is the latest attempt for the execs to “make stock number go up” i don’t think this bodes well for the short-term future of the company.
Not Elsewhere Classified
Thanks for the update. A few creators I subscribe to on here have posted similar updates which feels very responsible, so thanks for the candour and honesty. Not sure where else to ask this question (not a fan of discord) but, whilst in the discussion of fees, is there any update on when the monthly newsletters/subscriber videos will be returning? Edit: nvm I’ve changed my subscription ¯\_(ツ)_/¯
Benj
Have you considered moving to a cooperative platform like comradery.co ?
mr_scrawley
Definitely worth looking into! Cory also talks about this specific issue within that context (and about other harmful practices by apple) in today's blog entry: https://pluralistic.net/2024/08/15/private-law/
Duncan Folkes
How unlike Apple to abuse the power provided by their platform's position within the mobile oligopoly and charge for a service where they add almost no value.
Thibaut Renaux
I was wondering the same thing, so I looked through the Patreon support pages until I finally found this: "What happens for members who subscribe to multiple creators on subscription billing? On subscription billing, every membership renews separately on the date the member signed up for that membership. This means members who subscribe to multiple creators throughout the month will be charged on the unique bill dates for those memberships throughout the month. If a member signs up for multiple memberships on the same day, those would all have the same monthly bill date and be charged in one transaction." So as long as you subscribe to multiple creators on the same day, it should all get lumped together. If you're already subscribed to someone and they switch to subscription billing (and they all will be forced to at some point), you'll still pay on the first as that will be considered the start of your subscription. That means you don't have to worry about creators you already support, but if you want to support new ones, you'll have to make sure to subscribe on the first so it gets lumped with the others, as far as I can tell.
Laura Mellin
Apple has had dismal stock performance this year, so I’m guessing they’re trying to make it look better as an investment. I avoid apps wherever possible, b/c they make the performance worse.
PotentPinion
So one of the other big advantages of paying on the first was lumping everything into one charge to lower payment processing fees. Does anyone know if subs still get lumped together day by day, or is every non-legacy subscription going to be a separate charge now?
Benj
That IS a fun fact!
Garbanarba
Tangential fun fact: Yanis Varoufakis was an economist at Valve for a while, working on the steam trading platform.
sarfa
To echo what's already been said, fantastic post. It's a rubbish situation and it's good to see a journalist like yourself calling out the companies who profit from it.
Ross
Love this post, it's all a bad situation, BUT I do prefer annual memberships on patreon (just knowing that credit card companies are making less in fees is nice), so yeah silver lining
hickwarrior
It's why Neo Liberalism is a scam. Its about getting all of the money and not being happy with the profits and life you have right now... when it comes to rich folks at least.
laxsill
Did not know. I just assumed. Thank you!
Alexandros
If you're in the EU there are efforts to tackle anticompetitive behaviour like this one through the DSA and DMA acts. While it doesn't tackle this directly it has already forced quite a few concessions.
Michelle D'israeli
Something to include is that technofuedalism is empowered via the economic concept of natural monopolies - the idea that although it may technically be a free market, single locations/platforms/providers have so much power, influence and market share that they become defacto monopolies despite not actually being one on paper
People Make Games
This post is accessible to anybody, not just PMG patrons, if that helps?
laxsill
Is this text available somewhere outside of Patreon? I'd like to share at least the last political part. I think it's completely outrageous and you formulated it well.
Nathan Shepperd
Started replying on my iPhone and then gave up because I don't think the app is even paticularly helpful beyond notifications. They could have taken the bandcamp approach and just disable purchases via the app. I hope there can be more co-op based alternatives to these platforms. Some creators are able to set up independent funding via their own sites but not everyone has the confidence to do that on their own.
George Platen
Thanks Apple, Thapple. (I probably will go annual though)
Leberschnitzel
Get together with other creators and tell patreon to give the option to disable signups over the iOS app
Braden Liatris
Fantastic post, Chris.
Charlotte KL
Yeah, this is all complete BS and it should not be legal for Apple to do this. If you want to read exactly how the tech industry specifically, but not exclusively, has perfected this model of legal extortion, I highly recommend the book "Chokepoint Capitalism" by Cory Doctorow and Rebecca Giblin, where they explain in detail how companies lock in both their customers and their suppliers to squeeze them on both ends.
