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Fanhouse protests Apple’s 30% commission on creator payments

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Fanhouse protests Apple’s 30% commission on creator payments

Content creation platform Fanhouse is launching a campaign protesting Apple’s App Store’s 30% commission on payments to creators.

The founders of Fanhouse, a platform that allows fans to pay creators for exclusive content, say Apple is threatening to ban them from the App Store in August if they don’t pay the 30% cut in payments users make to users. creators. on the platform.

“People who depend on their creative income as a means of supporting themselves will now be taxed by Apple more than they would pay by their own government. Someone making $ 10,000 now would only make $ 6,000,” said founder Jasmine Rice . “For some people, that difference can be life or death.”

Fanhouse is a platform where creators can set up what is essentially a private social media page that only paying fans can access. Founded in 2020, the app managed to hit the App Store without Apple realizing it was offering payments that bypassed its in-app purchasing platform.

Rice said that Fanhouse only takes 10% of the revenue creators make on the platform. Although he added that he agrees with Apple taking 30% of the company’s revenue, but not 30% of the money earned by the creators.

In a statement to The edge, Apple said it is working with Fanhouse so that the app meets their guidelines. He also said that Fanhouse was previously rejected due to a similar guideline violation.

Apple takes a 30% cut from in-app and app purchases on the App Store, a fee that has become a talking point for developers. Apple’s requirement that developers use their own proprietary payment platform with that fee was the catalyst for the Epic Games v. Apple lawsuit.

Apple launched a small business program in 2020 that lowered its commission to 15% for app companies making less than $ 1 million in revenue from the App Store. Fanhouse makes more than that, but pays almost all of its income to creators.

It’s worth noting that Apple’s guidelines didn’t explicitly cover content creators until Monday, when the company updated its rules to allow creator-created content as long as it’s moderated and Apple gets its 30%.

Rice, for her part, is encouraging other creator-based companies to urge Apple to change its policies.

“Apple, take your big chunk of our profits or allow us payment exceptions like you do with other platforms,” ​​Rice said. “But please allow creators a place where they can earn a fair income from their content. These people deserve most of their earnings and nothing less.”

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