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Google Plans to Be Ahead of Apple With New App Revenue Sharing Model: Report

Google Plans to Be Ahead of Apple With New App Revenue Sharing Model: Report
  • Apple to offer 85 percent cut to publishers for subscription services.
  • Google also plans to bring the same strategy.
  • Google however will offer 85 percent cut right away to developers.

Ahead of Apple's annual WWDC developer conference, Apple's Senior Vice President Phil Schiller revealed new revenue-sharing model for apps. In its new strategy, Apple said it will follow the standard 70 and 30 percent split; though this will change for developers who will offer subscription of a service to users with over a year duration. Apple will offer publishers a cut of 85 percent thus dropping its own cut to just 15 percent. Schiller told The Verge, "Now we're going to open up to all categories, and that includes games, which is a huge category."

Now, Re/code reports that Google is planning to be one step ahead of Apple with its new subscription model. Google will reportedly offer the new split to developers with effect immediately, unlike Apple. This will mean that Google will not want publisher to have a subscription for at least a year and instead will offer the 85 percent cut right away. The report citing sources claims Google is already testing the new split with some entertainment publishers. There is however no word when will Google officially roll out the new revenue-sharing model for apps.

It's worth noting that the above subscription-revenue model will be in place only available when a publisher offers a subscription for an app. The model doesn't apply to one-time purchase of an app.

Google in March revamped its developer website to help Android users better understand the guidelines of its app store. The interactive website also helped a developer quickly walk through various aspects of an app including security, ads, monetisation, and copyright. Last year, Google Play received a major revamp which saw the creation of Apps & Games and Entertainment tabs, amongst other changes.


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