Google halves its share of in-app subscription revenue on the Play Store

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Google made another adjustment to the fee structure for apps hosted on the Google Play App Store, again giving some developers a bigger slice of the pie. The change specifically affects apps that rely on recurring subscription revenue.

Previously, Google had reduced by 30% the first year of activity of a recurring subscription, then by 15% in the following years. From now on, Google will only take a 15% reduction from the start.

Some applications that correspond to the Play Media Experience Program, such as book distribution or video or audio streaming apps, will see even smaller reductions of up to 10%. To join this program, developers must register.

In March, Google slashed its share of revenue on initial or in-app purchases from 30% to 15% on the first million dollars a year earned by an app developer. The change was made very soon after Apple introduced a similar change to its App Store, although Google’s deal is a bit more appealing. (Apple’s App Store pricing structure for in-app subscriptions is still close to what Google is replacing on the Play Store.)

But this new change in the subscription fee structure is unrelated to overall revenues; it is universal.

There are several reasons for the move. Like Apple, Google faces increasing regulatory control over how it manages its app store and its relationships with third-party developers. Google can hope that its case and public image will be helped by the change.

Moreover, like TechCrunch reports, Google has been trying for some time to woo and attract more developers creating multimedia and playback applications.

The new pricing structure will begin on January 1, 2022.


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