Google Follows Apple’s Lead By Reducing Play Store Fee for App Subscriptions
Google revealed on Thursday that it would follow Apple’s lead in lowering the amount of money app developers must pay for mobile subscriptions processed through the company’s Play Store (via The Verge).
Adoption of the subscription model by iOS developers has increased over recent months, causing some controversy within the app-using community. Apple incentivized developers to sell their apps for a recurring fee instead of a one-time cost when it made changes to its App Store subscription policies in September of last year.
Usually, Apple takes 30 percent of app revenue, but developers who are able to maintain a subscription with a customer longer than a year see Apple’s cut drop down to 15 percent.
Google is adopting the same policy for subscriptions in its Play Store – an Android developer selling a subscription service will be eligible for the cut if the customer in question has been subscribed for more than a year. The company plans to bring the change into effect starting January 2018.
As The Verge notes, Google is trying to stay competitive with Apple by offering a reduction in its fees. This way the company ensures that subscription services like Spotify don’t try to bypass the Play Store in an effort to avoid paying the fee. But it also encourages developers to work harder to keep users subscribed for longer, given that the free reduction doesn’t take effect until 12 months into the initial subscription.
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