Google Also Planning to Adopt 85/15 Subscription Revenue Split for Developers

androidJust hours after Apple announced plans to implement App Store revenue sharing changes that will see developers getting an 85/15 revenue split for subscriptions maintained for longer than a year, Re/code says Google is planning on implementing a similar change for Android.

According to unnamed sources, Google is going to implement the same 85/15 split, but unlike Apple, Google will make the new revenue sharing changes available without the one year requirement. It is not known when Google will roll out its revenue changes to all developers.
Now Google plans to up the ante at its app store: It will also move from a 70/30 split to 85/15 for subscriptions -- but instead of requiring developers to hook a subscriber for 12 months before offering the better split, it will make it available right away.

Sources said Google has already been testing the new split with some entertainment companies (so has Apple, to some extent). ​Google started running the new model over a year ago with video services as a way to get Play subscriptions to work with its TV streaming offerings like the Cast dongle.
Apple currently takes a 30 percent cut of subscription fees in the App Store with 70 percent going to developers, but that's changing with a new policy that will implement an 85/15 split if a customer stays subscribed to an app for more than one year.

For example, if a customer subscribes to Netflix through the App Store and pays $7.99 per month, for the first year, 30 percent of that amount goes to Apple. If a customer stays subscribed, at the start of the second year, Apple's share will drop to 15 percent, giving Netflix 85 percent.

In addition to a new revenue sharing model, Apple expanded App Store subscriptions to encompass all App Store categories, giving developers more options for selling their apps and earning revenue, and it introduced ads for App Store search results.

Tag: Google


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39 months ago
Fastest copying ever
Rating: 6 Votes
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39 months ago
C, V
Rating: 5 Votes
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39 months ago
So will this push Amazon to finally bring their streaming service to Apple TV?
Rating: 4 Votes
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39 months ago
That would be awesome if apple gave 85% to hard working devs with any sale.
Rating: 4 Votes
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39 months ago
Apple needs to match this and just make it 85/15 right away too. Developers are going to take a revenue hit by switching to subscriptions due to less upfront sales (I know, I'm a developer who's test subs before). So that extra 15% makes up for some of the loss. If Google is going to earn me more money, I might throw my resources there first.

Your move Apple.
Rating: 3 Votes
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39 months ago
Google just one-upped Apple. This is the kind of action we need: competitors applying pressure to fight for devs so Apple will do the same. There is no compelling reason Apple should charge 30% for the first year; devs don't get any extra services that first year, so it's effectively just Apple throwing their weight around. A flat 15/85 split is simpler and should also be the rate for non-subscription purchases. The App Store is just a payment processor with strict terms of use.
Rating: 3 Votes
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39 months ago
Samsung changed company name to "Google". This I didn't see coming.
Rating: 3 Votes
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39 months ago

C, V


Ggle
Rating: 3 Votes
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39 months ago

So will this push Amazon to finally bring their streaming service to Apple TV?


If the revenue split was really what's keeping Amazon off the Apple TV, they wouldn't have had an Amazon Video app on iOS devices for the past several years.

Only Bezos knows what's really going on in that head of his...
Rating: 2 Votes
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39 months ago
Unlike some folks here, I wouldn't say that Google is copying Apple. Decisions like this aren't made overnight. I assume this is a revenue model that Google also has been working on for a while, but then felt compelled to announce today as a reaction to Apple.
Rating: 2 Votes
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