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Google Play Store cuts subscription developer tax in half

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The industry practice of “70/30” revenue cuts between developers and app store owners has been under the microscope in the last few years, especially after Epic Games made a big fuss. It forced policy changes on some platforms and usually reduced so-called “developer taxes” only under certain circumstances. However, in general, storefront owners receive 30% of their profits by default, but Google has made significant changes to its policy to push subscriptions to the forefront.

Like many companies, the 70/30 revenue split has become the de facto standard without clear consensus among industry players. Giving 30% of profits to store and platform owners may have worked well for things like Steam, where each product often sells in double digits, but it works well for the mobile app market. It was not reflected. Unfortunately, that’s been the case for many years, and it really hurt developers who sold apps for an average price of less than $ 4.99.

It can be even worse for apps and services that can be profitable on a monthly or yearly basis. But at the same time, Google, Apple, and others are pushing the subscription model as a more viable and sustainable strategy compared to one-time payments for apps. To give this model an incentive, Google is making it more attractive to switch to subscription fees by lowering the taxes that developers have to pay.

Starting January next year, service charges or anything else sold on the Google Play Store will be reduced from 30% to 15%. In short, developers and publishers take 85% of their revenue. Previously, Google allowed the same cut, but only 12 months after a regular subscription. This change follows another major move in April last year, when the first $ 1 million in developer revenue reduced revenue to 15%.

Google is also coordinating some of the numbers for ebook publishers and on-demand music streaming services. You can reduce your service charges to 10% only if you are enrolled in Google’s PlayMedia Experience program. The program encourages publishers to target almost or all devices available for Android so that the same experience and content exists on cars, TVs, and even smartwatches, Android makers said. Says.

Sources

1/ https://Google.com/

2/ https://www.slashgear.com/google-play-store-cuts-developer-tax-for-subscriptions-by-half-25696471/

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