Google Play cuts subscription fee from 30% to 15% starting Jan 1, 2022
Google said
today that starting on January 1, 2022, it will be decreasing the service fee
for all subscriptions on Google Play to 15 per
cent from 30 per cent, and for developers offering subscriptions, this means
that first-year subscription fees will be cut in half.
"Digital subscriptions have become one of the fastest growing
models for developers but we know that subscription businesses face specific
challenges in customer acquisition and retention. We’ve worked with our
partners in dating, fitness, education and other sectors to understand the
nuances of their businesses. Our current service fee drops from 30 per cent to
15 per cent after 12 months of a recurring subscription. But 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," said
Sameer Samat, Vice President, Product Management at Google, in a blog post on
Thursday.
Google Play
currently charges 30 per cent fees for subscription services after 12 months.
Now this will be 15 per cent for subscription services from the first day.
Earlier this year Google launched the Play Media Experience
programme to encourage video, audio and book developers alike to help grow the
Android platform by building cross-device experiences. This helped developers
invest in these multi-screen experiences with a service fee as low as 15 per
cent, the firm said in the blog post.
The tech giant further said e-books 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. You can go here for more
information," Samat added.
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