Report: Google planning to one-up Apple with new Play Store revenue model

That didn’t take long. 

Just a day after Apple said it would give developers a more favorable cut for subscription offerings in the App Store, Google is apparently planning to follow suit. 

According to Recode, subscription-based services on Google Play will move from a 70/30 revenue split to 85/15. Unlike Apple’s new plan, which will offer the same split, Google won’t require a one-year threshold to get the improved sharing rate. 

There was no specific date as to when this would take effect, though the report did say Google has been testing the new scheme with some media companies. If this is in the works, Google will probably announce the move at some point soon, perhaps around the time of WWDC to steal away a little of Apple’s thunder.

Why this matters: Google has tried to make the Play Store a friendlier place for subscriptions, allowing companies to even use their own backend billing system and keep all the revenue. On the App Store, publishers and others have to use Apple’s payment tools and hand over 30 percent of the revenue. It’s also worth remembering this is only for subscriptions. This new payment model should push ever more apps and services in the direction of subscriptions instead of one-time payments.

IDG Insider


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