Mikey Campbell
After Apple announced an upcoming change to its App Store revenue sharing policies that will net developers a larger cut for customers who maintain a subscription for more than one year, a report now says Google plans to offer identical terms — minus the probationary period.
Citing sources familiar with Google's app store plans, Re/code reports the internet search giant will soon lower its cut of apps sold on a subscription basis to 15 percent, leaving 85 percent to developers. For developers, an 85/15 split is much more attractive than the traditional 70/30 split made popular by Apple's App Store and later adopted by Google for its Android storefront.
The report comes just hours after Apple announced a massive shift in its revenue sharing policies. Dubbed internally as "Subscriptions 2.0," the forthcoming model gives developers an extra 15 percent share of subscription fees paid by customers who have maintained a subscription for more than one year. As Apple's usual 30 percent cut applies in all other scenarios, the move is an apparent push toward sustainable subscription sales.
Google, always looking to one-up Apple, will make its 85/15 revenue share split immediately applicable to all subscription accounts. A rollout timeline is unknown, but Google has been trialling the payout model with entertainment companies tied to Chromecast streaming products, the report said
Earlier today, Apple SVP of Worldwide Marketing Phil Schiller went on a press tour to tout changes customers and developers can expect when "App Store 2.0" launches this fall. In addition to new revenue sharing terms, the iOS App Store will begin to display "Search Ads," or paid promotions that show up directly in user search results. Ads are to be sold via a "fair" auction system and are designed provide users with a minimally intrusive search experience.
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44 Comments
Taylor Swift will complain and Apple will decide to drop the probationary period.
Wow, the words 'Google' and 'Ape' really go well together ;)
I imagine google as a small child, aimlessly stumbling around the pre-school playground until they see another kid enjoying a toy, then they start throwing a tantrum because all of the sudden they have to have that toy. Hurry Phil, find a shiny object to distract them with so we don't have to hear them whining!
Seriously though, is there an Apple product google hasn't tried to copy? They tried like 6 times with the TV. Oh, and of course they mocked Siri as useless until they saw people enjoying it, now they have entire products built around their version of it. I'd be sad if it wasn't so damn funny.
Revenue for Android is best through in-app ads. Google can ape iOS's terms all they like - they're still not addressing the underlying revenue problem for Android: rampant piracy and absurd platform fragmentation (both by device, and software version.) The fact that anyone can buy an app on the play store and repackage it beggars belief.
The problem with not having a probationary period for 15% cuts is developers will move to subscriptions en masse because 85% is far more than 70%.
And no one wins if every single app/game developer moves to subscriptions. It only ends up screwing all users and those developers that choose not to go to the subscription route.
The probationary period Apple added was to discourage developers from being jerkasses and moving to subscriptions without having the services/content to offer.