Google follows Apple App Store's lead in reducing revenue take for subscriptions

Posted:
in General Discussion
Google is improving the revenue split for Android developers selling subscriptions through Google Play, mirroring Apple's own policies for iPhone and iPad developers at the App Store.




Starting in January, Google will claim a smaller 15 percent cut so long as a customer has been subscribed for over a year. For most in-app purchases the company claims 30 percent.

The arrangement is essentially identical to one Apple implemented at the App Store in Sept. 2016. Up until that point, developers had complained about having to share so much ongoing revenue with Apple, especially since they were the ones providing content.

Indeed some companies, most infamously Spotify, charged more for in-app subscriptions to compensate for lost revenue. Ultimately the streaming service disabled in-app subscriptions altogether, asking customers to upgrade to Premium elsewhere.

Google's strategy is presumably meant to keep developers from preferring or defecting to the App Store, which is typically believed to be more profitable, despite Android devices having a greater worldwide marketshare.

Comments

  • Reply 1 of 4
    Doesn’t Google allow 3rd party payment options via the play store?
  • Reply 2 of 4
    jbdragonjbdragon Posts: 1,964member
    WOW, people complain about Apple, and here's GOOGLE doing th exact same COPY as Apple once again. Same 30% for everything and then the exact same 15% after a year for a subscription. I just find that funny. It couldn't be 10%? Or a 6 month wait. How about 15% right from the start? No year wait? Yet, exacly copy Apple once again. What is it with Google these last couple years of just flat out copying Apple. The Pixels were almost iPhone clones.
    watto_cobra
  • Reply 3 of 4
    Google must be burning through billions per year on supporting the thousands of varieties of Android phones, PLUS their wasteful acquisitions, plus their flailing product development and sales of Pixel phones... Ouch!
    watto_cobra
  • Reply 4 of 4
    I hate having to pay a subscription for non-content-driven apps. Unless you’re constantly bringing new content such as music or information then drop it! I’ll pay once for a good app and I expect to own it then - not rent it forever. 
    watto_cobra
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