After pushing back fees from Apple’s App Store last year, creator platform Fanhouse is introducing in-app purchases to its iOS app – now with a 50% surcharge – to allow users to subscribe to their favorite designers. App co-founder Rosie Nguyen announcement changes today on Twitter. The company wrote that the changes are made “as a result of Apple’s bs”
On Fanhouse, creators charge subscription fees that give fans access to exclusive content (SFW) like updates, photos, and videos. Subscribers can also tip creators or buy “locked” content. The app promises that its creators will receive 90% of the payments, with the rest going to the app.
Fanhouse was first able to slip a “Subscribe” button into its app that prompted users to make online payments, breaking Apple’s rules requiring digital purchases to go through its own in-app payment system. and pay their usual 30% fee. After Apple demanded changes, the company tried to pressure Apple to update its rules so creators could retain a deeper discount.
Nguyen said The edge last year that Apple’s tax hurts individual creators, not just the platforms they use. Fanhouse was told it would have to start paying Apple 30% of creator revenue or be booted from the App Store. In June, Fanhouse received an extension until the end of 2021 to comply or face deletion.
In the end, Apple didn’t back down. “There’s hardly anything that Apple was willing to accept as an alternative,” Nguyen said. The edge Last week. Fanhouse will now introduce a system of virtual tokens that users will purchase and the price of which will include more than Apple’s 30% discount on iOS, meaning that Apple tax is passed on to users. Nguyen said fans still want a way to access content from creators, even with a raise, and that creators will still be able to keep 90% of their subscription revenue after the Apple tax.
It’s screwed, and we were forced to implement IAP today or even not exist as an application. We’ve been fighting this for months, and we’ll keep trying to fight it. We talk to senators, we support the Epic case, and we stay transparent with all of our users. (20/)
— jasminericegirl (@jasminericegirl) January 26, 2022
The overly high fees appear to be designed to discourage users from buying them on iOS. On the platform’s site, users are urged not to buy tokens in-app, where they cost more than on the web. According to the site, 2,000 coins cost $30 on the app and $20 on the web. On Twitter, Nguyen wrote, “If the app wants you to enter payment information, don’t. It means “give Apple 30% of your money”. Buy coins on the web and then you can use them freely in the app.
Fanhouse isn’t the first platform — or the biggest — to try to get Apple to change its rules. The legal battle between Epic, the creator of fortnite, was partly on App Store fees. The way Apple collects fees from platforms, especially as more subscription options are rolled out for individuals, means the issue will be increasingly relevant to creators and developers alike.
Correction on January 26, 3:45 p.m. ET: Fanhouse originally told us the surcharge would be 30%; it will actually be 50 percent.