App developers have always complained bitterly about the high commissions imposed on them by app stores. But the pressure that they have been exerting together for years together with the legislators on the omnipotent app stores have finally borne fruit. Google has agreed to halve the fees it charges for subscription services in its app store.
As of January 1, 2022, the Google Play Store will apply a 15% commission to third-party subscription applications. Currently, the internet giant charges this type of app a commission of 30% during the first year and 15% in subsequent years. Google also pockets 15% of the first million dollars generated by subscription apps in its app store.
The Mountain View company has agreed to cut these commissions, arguing that “customer churn makes it difficult for subscription applications to benefit from a discount in the second year.”
“Digital subscriptions have become one of the fastest growing models for developers, but we know that subscription companies face unique challenges in customer acquisition and retention,” explains Sameer Samat, vice president of Google, in the blog. of the company.
Apple will maintain the 30% commissions for subscription apps for the first year for the time being
Both Google and Apple have lately been in the eye of the hurricane due to the power, clearly excessive, that they exercise over the developers who make their way into their respective application stores. The apple company also charges subscription apps a 15% commission after the first year and, unlike Google, will initially maintain the 30% premium for the first twelve months.
The games, which are the applications that most fill the coffers of the Play Store and App Store, are outside the decrease in commissions announced by Google. Most of the games are non-subscription based and mostly earn their revenue through in-app purchases.
On the other hand, Google has also announced changes in the rates applied to multimedia apps and from now on e-books and music streaming applications will be able to opt to be part of the Play Media Experience program, which launched at the beginning of this year charges to selected developers a variable commission of less than 15% (which can fall in certain cases up to 10%).