Thursday, April 18, 2024

Google will slash Play Store subscription fees

For the sale of apps, in-app purchases, and subscriptions made through the app stores of companies such as Apple and Google, developers have charged a fee by the companies. In the beginning, developers didn’t really have a choice. But in recent years, an increasing number of developers have come forward to express their dissatisfaction with the cuts that these companies were taking from them. But now according to a report Google is going to cut it’s play store subscription fees by half.
Google has recently revealed some modifications to the fees they’ll be taking from subscriptions. Practically halving the amount they’ll be taking from them to only 15 percent. This is a significant reduction from the previous 30 percent. In the past, Google has offered developers a 15 percent share. But only if a customer subscribes to the service on an ongoing basis for a period of 12 months.

As Google points out, “We’ve heard that customer attrition makes it difficult for subscription businesses to profit from the lower rate”. Consequently, we’re streamlining things to ensure that they do. We’re reducing the service fees for all subscription on Google Play Store from 30 percent to 15 percent, effective January 1, 2022, in order to better serve the special needs of developers that offer subscriptions.

We have a feeling that this isn’t a fully altruistic decision. While it is beneficial to developers who seek to make use of the Play Store. It also benefits Google in the eyes of regulators, as it may demonstrate that Google has prepared to make concessions. Which may help them avoid additional scrutiny and litigation. In any case, it is a positive development.

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