Substack Catches a Subscription Break to Attract A Paying Audience
Apple's new iOS rules allows new subscribers without paying fees
Hey Guys,
Just a quick note that I thought was relevant in the App store wars I’ve been following and covering.
I believe this rule will allow Substack’s new iOS app to help writers get more paying subscribers directly. Before they would have had to look you up on Substack’s website to convert from a free subscriber to an active paying subscriber.
So let’s look at the new rules.
Apple said on Wednesday that so-called “reader apps” will be allowed to use external links inside their apps to enable users to sign up or manage their accounts.
The change applies to apps that primarily provide magazines, newspapers, books, audio, music or video content. (This would include Substack).
The new policy will allow these apps to bypass Apple’s 15% to 30% fees by allowing them to link out to a external website to sign up new customers.
Good news also, Substack has broken back into the top #150 apps in Lifestyle. It had previously dropped out of the top #150. This is a good sign.
Apple This Week Said
Apple said on Wednesday that so-called “reader apps,” which allow users to access libraries of content (as the Substack app does) on their phones, will be allowed to use external links inside their apps to enable users to sign up or manage their accounts.
The move, which was announced last year as part of a settlement with the Japan Fair Trade Commission, applies to apps that provide magazines, newspapers, books, audio, music or video content, Apple said. Reader apps include some of the most popular apps on Apple’s App Store, including Spotify and Netflix. (I know, the category is a bit broad!)
Apple previously forbade app makers from directing users to sign up through a website (which is kind of crazy!). It instead forced them to use Apple’s App Store payment system, which takes between 15% and 30% of sales. The new policy will allow these apps to bypass Apple’s fees by linking out to a external website to sign up new customers.
So with some changes, I expect Substack’s app to allow your readers there to convert.
I found this interesting timing, the folks at Substack likely already knew this rule was coming and so timed their app to launch in such a way as to maximize it.
Apple Finally Democratizes the Creator Economy a Bit More
Effectively, the change, now reflected in Apple’s App Store guidelines, will enable reader apps to handle their own customer management for users acquired through the app, a sticking point that app makers have complained about to regulators and in courts around the world. The new policy is available globally, Apple said.
There’s been quite an App Store battle over this for quite some time!
It really empowers the Creator Economy
Subscribers can more easily support Creators (without Apple’s horrible 30% tax which breaks business models of subscription ecosystems)
To be clear, Apple was eventually legally forced to do this by law, not by the goodness of their heart.
The policy change comes as Apple’s App Store rules have been under intense scrutiny from courts and lawmakers around the world.
The end,
But it’s just the beginning for the Creator Economy!