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Substack writers can now direct US readers to (often cheaper) web-basedsubscriptions on iOS
Substack is leveraging a new option in the U.S. App Store, allowing writers to direct readers to cheaper web-based subscriptions, bypassing Apple’s in-app purchase fees. This change, resulting from an Epic Games lawsuit, benefits both Substack and consumers. Users can choose between Apple's payments system and web options, with Substack providing migration tools for creators and a boost in paid sign-ups reported.
Key points
- Substack can now direct U.S. readers to web subscriptions due to a new Apple App Store policy.
- This change is a result of the Epic Games antitrust lawsuit and benefits writers, as they avoid Apple’s commission fees.
- Consumers gain access to lower prices through web subscriptions.
- Substack will adjust prices to align with Apple’s fees but allows creators to opt out.
- Over 30,000 Substack publications currently feature in-app purchases.
- The launch will primarily impact new subscriptions; existing subscriptions remain under Apple's system.
Why it matters
- The change reflects ongoing tensions between app developers and large tech companies over payment systems.
- It highlights a trend towards alternative payment methods in the digital subscription economy.
- Similar changes have occurred with other platforms like Spotify and Patreon, showing a shift in app monetization strategies.
- The move is part of a broader scrutiny of app store monopolies and innovation in payment solutions.
Substack's adaptation to the new App Store rules represents a significant shift in digital subscription models, aiming to reduce costs for both creators and consumers while navigating a complex regulatory environment.