Google Cuts Play Store Dev Fees to 15% For All Subscriptions
Google announced that they are dropping the 30% flat service fee for in-app purchases or app sales to 15% starting January 1, 2022.
The tech giant previously offered this discount after 12 months of a recurring subscription, but with this announcement, they are now making everyone eligible from day one to receive this discount from day one.
This applies to all application developers who offer a paid app or sell in-app digital goods and services.
Google says this corresponds to roughly 3% of registered developers, as the rest distribute free apps that follow indirect monetization methods.
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Also, based on the earning amounts and the previous service fee model, 99% of those subject to charges qualified for a 15% fee already.
The new service fee model dictates the following:
- The service fee is 15% for the first $1 million of earnings each year when enrolled and 30% subsequently, which gives smaller developers more help as they scale their business.
- The fee for all subscriptions revenue is 15%, reflecting developer investment in keeping subscribers for the long run.
- Developers in certain programs, like the Play Media Experience Program, may be eligible for a reduced fee based on high content costs.
In addition to the apps on the Play Store, Google has also announced fee reductions for e-books and music streaming services on the platform, taking its cut down to 10% under certain eligibility conditions.
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Ongoing investigations
Google’s announcement says that the business model change results from listening to developers and consumers and trying to better cater to their needs.
With Google targeted by a barrage of anti-trust law violation probes launched across the globe, contract breach claims from developers, and an ever-tightening clamp of scrutiny around its business models, this reduced fee may be seen as an olive branch to developers.
While this is a positive development for Android app creators, it remains to see if developers pass on these savings to consumers.
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