Google announces that it is making a change in the Play Store on Android with the subscription commission which will go from 30% to 15%. This will be in place as of January 1, 2022.
Reduced commission for Google Play Store subscriptions
As of today, the Google Play Store has a 30% commission on subscriptions. At least that is the case during the first year. This drops to 15% in the second year. From January 1, 2022, it will be 15% from day one and for everyone. This is therefore good news for developers who will be able to keep 85% of income and no longer 70%.
Google says it’s making this change because “Customer churn rate makes it difficult for businesses to benefit” a discount the second year. “Digital subscriptions have become one of the fastest growing models for developers, but we know businesses face specific challenges when it comes to customer acquisition and retention.”, said Sameer Samat, vice president of Google.
Google Play Store apps that don’t have a subscription but are paid must still share 30% of their revenue. But that percentage is reduced to 15% as long as the income is less than a million dollars. According to Google, 99% of developers are eligible for the 15% commission.
This 15% drop in commission for the Google Play Store for subscriptions within Android applications could have an indirect impact on users on iOS. Will Apple align with Google with its App Store? To date, the iPhone maker takes 30% commission in the first year and then 15%.