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Fanhouse fights Apple tax

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Fanhouse, a platform where creators can freely publish and earn revenue with their content, is one of the platforms with the most support for creators. Its creators receive 90% of the revenue they get from the platform. It’s a generous division, which has worked well for both Fanhouse and its creators. However, Apple, which includes the Fanhouse app in the Apple Store, has a policy that requires a 30% discount for in-app purchases. According to Fanhouse, Apple threatened to withdraw the app from the App Store this August if it fails to get 30% of revenue creators to withdraw from subscriptions when purchased through the app.

Despite the threat of elimination, Fanhouse fights for its creators.

What is Fanhouse?

Fanhouse, founded eight months ago, is a platform that allows creators to earn revenue with any type of content they want to create. Many describe the site as PG-13 OnlyFans. Creators are allowed to publish whatever they want, but nudity and illegal activities are prohibited. It uses a subscription-based monetization system; however, creators can also make money through blocked tips or posts that fans have to pay to see. There is also a public feed that people can see without paying.

Apple’s demands hurt the creators

According to one report per The Verge a Fanhouse creator, Breadwitchery, said she would lose two months in profits at Fanhouse. Fanhouse co-founder Jasmine Rice says Apple’s claims are “theft” and “exploitation.”

Jasmine contacted Apple to try to reach an agreement that would allow the creators to earn 90% of the subscription revenue. The company offered Apple 30% of the 10% the company makes (it said it is even willing to reach 50%). Apple turned down the offer. In a Twitter thread, Jasmine explained that 30 percent at Fanhouse could be the difference between the life and death of some creators.

“Someone who made $ 10,000 now would only make $ 6,000. For some people, that difference can be life or death,” Jasmine writes. “We have unemployed creators of the pandemic. We have creators who need to pay rent, pay tuition, pay medical expenses and need their income to survive. 30% of Apple directly threatens their livelihoods. “

Where is Fanhouse going here?

Unfortunately, Fanhouse doesn’t have much to do about the situation. Apple said The Verge works with Fanhouse to find a solution that meets their standards. Apple takes 30 percent of all purchases made from digital products in the app and decides what a digital good is. Jasmine points out that Apple hypocritically allows Patreon to use third-party payments to avoid the in-app purchase rate.

Fanhouse is running a campaign hopefully it will force Apple not to require 30 percent of its creators ’revenue. As for the future of the app in the Apple Store, it’s unclear at this time. It looks like the platform won’t yield to Apple’s demands anytime soon. Less than two months pass before Apple takes action. Despite the situation, it’s good to see a platform defending its creators so they can receive the revenue for which they work so hard.

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