Google has announced that it is decreasing the service fee for Play Store subscriptions from 30% to 15%.
Our current service fee drops from 30% to 15% 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. 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.
Additionally, Google is lowering the fee even further for eBooks and music streaming services…
Today, we’re also making changes to the service fee in the Media Experience program, to better accommodate differences in these categories. 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%.
Google, like Apple, is facing an increased number of antitrust investigations over its app store practices. Recently, South Korea passed a bill that forces both companies to allow app developers to use third party payment systems. It’s likely that Google hopes these service fee reductions will help it fend off regulatory pressure.
These changes have been announced just ahead of the Android Developer Summit on October 27-28. More details at the link below…
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