Google halves Play Store fees for subscription apps
Reuters
Published Oct 21, 2021 18:39
(Reuters) - Alphabet (NASDAQ:GOOGL) Inc-owned Google said on Thursday it is lowering the fee that subscription-based apps need to pay Play Store to 15% right from day one, following criticism about its fee structure from companies such as Spotify.
Currently, developers pay a 30% subscription fee in the first year, and 15% thereafter.
"We've heard that customer churn makes it challenging for subscription businesses to benefit from that reduced rate. So, we're simplifying things to ensure they can," Google said in a blogpost.
The new structure will kick in from January next year and likely encourage developers to switch from one-time payment modes to subscriptions.
E-book companies and on-demand music streaming services, which use most of their sales to pay for content costs, will now be eligible for a service fee as low as 10%.
Google has come under fire from large firms such as Microsoft Corp (NASDAQ:MSFT), Spotify Technology SA, as well as startups and smaller companies, that allege the fees deprive consumers of choices and push up app prices.
In March, Google had said it will cut the service fee it charges developers on its app store by half on the first $1 million they earn in revenue in a year, a move similar to iPhone maker Apple Inc (NASDAQ:AAPL).
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.