Google Play Store fees to 15% on subscriptions Apps : Android is among the top viewed operating systems around the globe (even including desktop platforms), and, as it is, Google Play is one of the largest distribution channels for software in the history of technology. Yet, Google has been under the pressure of recent times to cut down on the amount they charge developers to make transactions, specifically during recent legal battles in the case of Epic Games. Google is now cutting the amount it deducts from subscription sales. Additionally, select developers can retain up to 90% of their profits.
Google Play Store fees to 15% on subscriptions apps
“Digital subscriptions have emerged as one of the fastest-growing options for developers,” Google wrote in an article on its blog, “but we know that businesses offering subscriptions face particular issues with customer acquisition and retention. […] The current fee for service drops from 30 percent to 15 percent following 12 consecutive months on recurring billing. We’ve heard that customers turnover makes it difficult for subscription companies to reap the benefits from the lower rate. Therefore, we’re simplifying the process so that they can.”
Google Play is now reducing the fee for service to every membership by 15%, beginning January 1st, 2022. Instead of charging 30 percent for the first year and then 15% after that. This will provide app developers with a greater income, especially for applications and services with low retention rates (e.g., subscribers unsubscribe before the year’s first year’s end).
Google is also making changes to the Play Media Experience Program, which reduces developers’ fees who create audio, video, or book apps. Before this, developers who participated included in the program could pay as little as 15%. However, they are now reducing that to 10 10%. “The new rates reflect the industry value of media content verticals and will make Google Play work better for developers as well as the communities of authors, artists, musicians, authors, and writers who they are representing,” the company said.
These changes could aid in helping Google overcome criticisms that it is taking too much of revenues from apps and has been consistent in the last few years. Epic Games has argued in the court that the price cut for purchase prices is uncompetitive. The lawsuit filed by Epic also disclosed how Netflix, Spotify, and Tinder had signed agreements secretly with Google to lower their fees for service that provided them with an advantage over smaller players with fewer active users.