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| Google lowers store commissions for subscription apps |
With increasing regulatory pressure on the Android version of the Google Play Store, the search giant has once again adjusted its business structure.
The company announced that additional app categories are eligible to pay a much lower commission than the usual 30%.
The company said that all subscription apps now pay a 15% commission.
E-books and on-demand music streaming services should also be eligible for commissions of only 10%.
According to the company, the reason for the low prices of e-books and music streaming apps is that content costs make up the majority of sales.
Although not mentioned, regulatory and public pressures from companies like Spotify are a cause.
If you are currently signing up for a Spotify subscription through Android, you will be redirected to the Spotify website to enter your payment information.
The lowest commission structure for streaming music is always at the discretion of the company, whether it is qualified apps or a low commission.
Developers can find out if they qualify for reduced commissions by reviewing the program's guidelines and expressing their interest. If so, the company will provide more information.
In terms of subscriptions, the company's previous structure was similar to that of Apple, at 30% in the first year and 15% thereafter.
The new change simplifies this by making 15% available immediately. Switching from a one-time payment to a subscription can be a powerful incentive for developers.
One reason for the change is that volatility makes it difficult for listed companies to take advantage of these lower prices.
Google reduced commissions due to pressure
The company has a plan that requires developers to take a 15% commission on the first $1 million earned through Google. The plan was drawn up in March 2021.
Since many of the apps are ad-supported, they are free. The company claims that 99% of developers qualify for a service fee of 15% or less.
Last week, Sundar Pichai spoke about the importance of App Store revenue to the company's overall Android business model.
We don't get commissions on equipment sales, he said, or on revenue from the telco. That's why we have to protect our ecosystem. The store is a major source of income and supports the Android system as a whole.