Substack Enables U.S. Writers to Offer Cheaper Web-Based Subscriptions on iOS

What's Happening?

Substack, a newsletter subscription platform, is leveraging a recent change in the U.S. App Store rules to allow users to make purchases outside of Apple's in-app purchasing system. This change follows the Epic Games antitrust lawsuit against Apple, which led to the modification of App Store policies. Substack's new payment option allows writers to direct readers to web-based subscriptions, potentially offering lower prices than those available through Apple's system. This move benefits Substack by eliminating the need to pay commissions to Apple on web sales, while consumers gain access to reduced pricing. Substack creators can choose between Apple's in-app payment system or the web payment option, which is now accessible without leaving the app. The company has also introduced migration tools to help writers manage billing information for Apple-managed subscriptions.

Why It's Important?

The introduction of web-based subscription options on iOS by Substack is significant as it challenges Apple's dominance in the app payment ecosystem. By bypassing Apple's commission fees, Substack can offer more competitive pricing, potentially increasing its subscriber base and revenue. This development reflects a broader trend where app developers seek alternatives to Apple's payment system, which has been criticized for its high fees. The change could lead to increased pressure on Apple to further relax its App Store policies, benefiting consumers and developers alike. Additionally, this move may encourage other platforms to adopt similar strategies, fostering a more competitive and diverse app marketplace.

What's Next?

Substack's public launch of external payment options will initially impact new subscriptions, with writers having the option to adjust pricing strategies. The company is evaluating whether to implement similar changes in the EU and UK, where Apple offers more complex rules for developers wishing to forgo in-app purchases. As Substack and other platforms continue to explore alternative payment methods, Apple may face increased scrutiny and pressure to revise its App Store policies further. The ongoing evolution of app payment systems could lead to significant shifts in how digital content is monetized and consumed.