Days after Apple reduced the App Store fees for developers, Google has announced that it would Play Store fees for developers. The subscriptions app will no longer have to pay a 30 per cent cut to the company because Google has now reduced the fees by 15 per cent. However, the changes will not be made immediately, the new Play Store fees would go into effect from January 2021. Google also announced that ebooks too and on-demand music streaming services will be eligible for a fee of 10 per cent.
Announcing the new Play Store fees, Google said in a blog post, “To help support the specific needs of developers offering subscriptions, starting on January 1, 2022, we’re decreasing the service fee for all subscriptions on Google Play from 30% to 15%, starting from day one. For developers offering subscriptions, this means that first-year subscription fees will be cut in half. We’ve already gotten positive feedback from our developer partners on this change,”
Google is also offering special relaxations to ebook and music streaming apps. The search giant said that Ebooks and on-demand music streaming services, where content costs account for the majority of sales, will now be eligible for a service fee as low as 10 per cent. The new rates recognize industry economics of media content verticals and make Google Play work better for developers and the communities of artists, musicians and authors they represent. Google had launched the Play Media Experience program earlier this year to encourage video, audio and book developers alike to help grow the Android platform by building cross-device experiences. The developers were only charged a service fee as low as 15 per cent for the same.
Now if the developers are wondering whether they are eligible for the low service fee or not, Google wants them to “review program guidelines and express interest now and we’ll follow up with more information if they are eligible.”
Google recently agreed to comply with South Korea’s latest order that demanded the search giant to allow third-party payments in its Google Play Store. The law was a massive blow to both Apple and Google as both the companies require in-app payments to happen through their channel only.
“Just as it costs developers money to build an app, it costs us money to build and maintain an operating system and app store. We’ll reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store, and we will share more in the coming weeks,” a Google spokesperson had told The Verge.