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

[MacRumors]

Just 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.

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

 

[farewelwilliams]

that didn't take long.

 

[zahuh]

That would be awesome if apple gave 85% to hard working devs with any sale.

 

[73b]

Fastest copying ever

 

[usamaah]

Fastest copying ever

Omg, it's not copying if Google was also testing it. In fact this is the market at play.

 

[Mac Fly (film)]

Samsung changed company name to "Google". This I didn't see coming.

 

[ShadovvMoon]

C, V

 

[manuelC]

C, V

Ggle

 

[Shirasaki]

Ok everyone is following.
*cough* subscription *cough*

No brainer.

 

[cariacou]

That's pretty useless apple...

 

[Red Oak]

That's pretty useless apple...

Clueless

 

[dannyyankou]

That's pretty useless apple...

You may think it's useless until a company launches an app you want, but they refuse to bring it to iOS because Apple takes 30% of the revenue. This is great for companies and developers.

 

[Good User Name]

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

 

[Stella]

Competition is great also for developers. Don't care if Google did this in response to Apple. Both companies can afford to take less revenue per app sold.

 

[v0lume4]

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.

 

[Westside guy]

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...

 

[canadianreader]

Will this influence the price per app we pay?

 

[John.B]

LOL! If there was ever a more shameless copycat company than GOOG, I'm sure I don't know who that would be.

 

[ethanwa79]

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.

 

[Flow39]

Well, that was quick.

Is Google also going to halt Music sales as well and only use Google Play Music All-Access?

 

[CaTOAGU]

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.

Would you make more from Google even with the higher split though, I was under the impression Apples App Store had higher overall sales, would this make up the difference?

 

[12vElectronics]

I'm the biggest Apple fanboy (not really) so I'm not defending Google here but they're not copying anybody. These large companies know what the other is doing at all times. They both are testing similair programs/products/services at the same time.

 

[vooke]

The bigger picture is that competition is favoring developers. They will reap an extra 15%.

We need more competition

 

[ethanwa79]

Would you make more from Google even with the higher split though, I was under the impression Apples App Store had higher overall sales, would this make up the difference?

Shhhh...

 

[Piggie]

Would you make more from Google even with the higher split though, I was under the impression Apples App Store had higher overall sales, would this make up the difference?

I believe that used to be the case yes, esp in early years, but I did read a few articles a little whilst back that suggested this was no longer the case. The sheer number of Android phones, which, worldwide dwarf Apple iPhone's gives Android devs a vastly larger potential customer base that's growing quickly all the time.