What's Happening?
Substack has announced a new feature allowing U.S. users to opt for web-based subscriptions on iOS, potentially offering lower costs compared to Apple's in-app purchase system. This development follows a change in Apple's App Store rules in May, influenced by Epic Games' antitrust lawsuit, which permits apps to offer external payment links. Substack creators can now provide users with the choice between Apple's in-app payment system and web options, accessible without leaving the app. Substack will adjust iOS app prices to account for Apple's fees, with an option for writers to disable this feature. The company continues to charge a 10% fee based on web subscription prices. Additionally, Substack offers migration tools for creators to manage billing information for Apple-managed subscriptions if they leave the platform. Over 30,000 publications on Substack have enabled in-app purchases, and early tests of the new payment options have increased paid sign-ups.
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Why It's Important?
This change is significant as it allows Substack to bypass Apple's commission fees on in-app purchases, potentially reducing costs for consumers and increasing revenue for creators. By offering web-based subscription options, Substack can attract more users who prefer lower prices, thereby boosting its competitive edge in the digital subscription market. The move also reflects a broader trend among app developers seeking alternatives to Apple's payment system, which has been criticized for its high fees. This could lead to increased pressure on Apple to further relax its App Store policies, benefiting both developers and consumers.
What's Next?
Substack's introduction of web-based subscriptions on iOS may prompt other app developers to explore similar options, potentially leading to a shift in how digital subscriptions are offered on mobile platforms. As more companies adopt external payment links, Apple may face increased scrutiny and pressure to adjust its App Store policies. Substack's success with this model could encourage other subscription-based platforms to follow suit, potentially reshaping the landscape of digital content monetization.
