The same day Epic Games, the makers of Fortnite, tried it out on one of the biggest legal challenges to the App Store business model to date, the company announced its acquisition of ArtStation, the artist community, and reduced commissions to Sell immediately Standard creators on ArtStation are now seeing a 12% commission rate found in Epic’s Games Store for PC instead of 30% before. What should a “reasonable” commission look like? This could become a benchmark against Apple’s App Store’s 30% commission for big developers like Epic as the court case progresses.
Today, ArtStation offers creators in games, media and entertainment to showcase their work and find new jobs.The company has a longstanding relationship with Epic Games, as many ArtStation creators work with the Unreal Engine. Epic̵7;s ArtStation, however, is also the home of vertical 2D and 3D creators, as well as those who didn’t work with the Unreal Engine.
The acquisition will not change that, the team said in the announcement. But the deal will expand creators’ opportunities to make money from their work. Especially that is the reduction in commissions. For standard creators, fees are reduced from 30% to 12%. For Pro members (who pay $ 9.95 / month for subscriptions), the commission is reduced from 20% to 8% and for self-promotion fees. It will be just 5%. ArtEngine ArtStation Learning’s video streaming service will be free for the remainder of 2021.
The slashed commissions, however, are perhaps the most significant change Epic is making to ArtStation, as it gives Epic a unique example of how it treats its creator community. It is likely to reference acquisitions and commission changes during the trial with Apple, along with its own Epic Games Store, and similarly low rates. Epic’s move has prompted Microsoft to cut sales of the game as well, having recently announced a similar 30% drop to a similar 12%.
In its trials, Epic Games will try to argue that Apple has a monopoly on the iOS app ecosystem and abuses its market power to force developers to use Apple’s payment system and pay commissions on sales and purchases. Apps that flow through those Epic Games systems, like any big app maker, want to use their own payment systems to avoid commissions, or at the very least, be able to direct users to websites that They can pay directly, but Apple doesn’t allow this in accordance with the App Store guidelines.
Last year, Epic Games spurred Fortnite’s outreach to the App Store by introducing a new way to pay directly on mobile devices, offering substantial discounts. It was a calculated move that both Apple and Google immediately banned the game for violating their App Store policies. And then Epic sue.
While Epic’s battle has been technically with both Apple and Google, it has focused more on power in the past as Android devices allow for app loading. (Direct app installation method) and Apple doesn’t.
At the same time, Apple’s argument is that Epic Games agrees with Apple’s terms and practices, and then deliberately violates it in an attempt to make a special deal, but Apple says the guidelines apply equally to all developers and that Epic doesn’t. Get an exception here.
However, throughout the course of the US antitrust investigation into big tech, it was found that Apple had made special deals in the past. An e-mail shared by the House Judiciary Committee as part of the investigation revealed that Apple had agreed to pay a 15% commission for Amazon’s Prime Video app at the beginning, usually with the subscription video app. That is 30% in year one, then 15% in the second and beyond (Apple says Amazon only qualifies for new programs) .Additionally, other older emails reveal that Apple has had several discussions about adding Commission rates are higher than 30%, which indicates that Apple believes its commission rates are flexible.
Prior to Epic Games’s acquisition today, ArtStation acquired Epic’s “Megagrant” during a heavy outbreak to help it get through times of uncertainty. This could push the two companies to discuss deeper relationships in the future.
“Over the past seven years, we’ve worked hard to enable creators to showcase their work, connect with opportunities, and earn a living by doing what they love,” said Leonard Teo, CEO and contributor. ArtStation co-founder said in a statement, “As part of Epic, we will be able to move forward on this mission and give back to the community in ways that we cannot do on our own, while maintaining ArtStation’s name and spirit.”