Earlier today we heard that Apple would be making some changes to the app store, one of these was the revenue share with developers on subscriptions.
Apple announced earlier that their revenue share on subscriptions within apps would drop from 30% to 15% after 12 months, that means that developers would get 85% of the revenue.
Google’s Approach to Subscription Revenue Sharing
Now according to a recent report by re/code, Google is looking to do a similar thing with its Google Play subscriptions. Google has apparently already been testing out its new revenue split on subscriptions with some developers, which would mean that Google would take 15% and developers 85%. There is a significant difference between what Apple and Google plan to do, though.
Google intends to offer the higher revenue share for subscriptions to developers from day one, whereas Apple will offer it after 12 months. This means that developers on the Google Play Store could potentially see increased revenue much sooner than those on Apple’s App Store. This move could make Google Play a more attractive platform for developers who rely heavily on subscription models.
Implications for Developers and the Market
The implications of these changes are substantial for developers. For instance, a developer who earns $100,000 annually from subscriptions would see their revenue increase from $70,000 to $85,000 under the new model. This additional revenue could be reinvested into further app development, marketing, or other business operations, potentially leading to better apps and services for consumers.
Moreover, this change could influence the competitive landscape between Apple and Google. By offering a more favorable revenue share from the outset, Google could attract more developers to its platform. This could lead to a richer variety of apps and services available on Google Play, benefiting users who might find more innovative and diverse options.
Additionally, the move by both tech giants to reduce their cut from subscriptions reflects a broader trend in the industry. As the app market matures, developers are seeking more sustainable revenue models, and subscriptions have become increasingly popular. By adjusting their revenue-sharing models, Apple and Google are acknowledging the importance of supporting developers in this evolving landscape.
Another aspect to consider is the potential impact on smaller developers and startups. For these entities, every dollar counts, and the reduced revenue share could be a game-changer. It could enable smaller developers to compete more effectively with larger, established companies, fostering innovation and diversity in the app ecosystem.
Furthermore, this shift could also influence consumer behavior. With developers potentially having more resources to improve their apps, users might see higher-quality applications and services. This could lead to increased user satisfaction and loyalty, ultimately benefiting both the developers and the platform providers.
The changes to subscription revenue sharing by Apple and Google represent a significant shift in the app development landscape. By offering more favorable terms to developers, both companies are likely to attract more high-quality apps to their platforms, benefiting users and fostering innovation. As the app market continues to evolve, it will be interesting to see how these changes impact the industry and the competitive dynamics between Apple and Google.
Source: Techmeme
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.