Good news for developers who sell subscriptions through their apps in the Play Store: Google announced that it will cut its commission in half starting next year. This means that the retention applied by the Mountain View company will go from 30% to 15%.
Recall that Google had already implemented a similar measure last March; however, it impacted only on the first million billed for selling an app, or for in-app purchases. As for subscriptions, Google’s commission already dropped to 15%, but only when developers got users to keep it active for 12 consecutive months.
The reduction announced today implies an extension of this benefit. From January 1, 2022, the slice that Google will charge for all subscriptions sold through the Play Store will be 15%. This means that it will apply from day one, so it will no longer be necessary to comply with the one-year period mentioned above.
According to the company, the measure is intended to provide a more encouraging outlook for developers using a subscription-based business model. Google indicates that the loss of customers prevented many companies from accessing the Play Store benefit as previously stipulated, as they were unable to complete the requirement of having recurring subscribers.
In addition to lowering the commission it charges for Play Store subscriptions, Google reported another new development for developers. Last June, the company announced Play Media Experience, a program aimed at encouraging the development of e-book, audio and video apps for Wear OS, Android Auto and Google TV; and for this it already offered to reduce its commission to 15%.
What Google is now also proposing is that those who develop apps for reading e-books or listening to music via streaming, and who are already part of the Play Media Experience, can apply for an even greater reduction. Those who are approved could pay as little as 10% commission.
Logically, this new proposal from Google is not based solely on a gesture of goodwill. Let’s remember that those from Mountain View are under the scrutiny of regulators for their handling of the Play Store. The case of Epic Games and Fortnite is the most notorious for the ramifications it has had, but also adds the recent determination of South Korea forcing Google and Apple to report alternative means of payment in their online stores.