Soon after Apple’s announcement of a major shakeup of its App Store revenue model, Google has apparently decided to follow suit with its own changes to the Play Store. Both benefit developers at the end of the day, though the latter’s plan is much more generous when it comes to terms.
To recap, Apple is shifting away from a 70/30 split of subscription revenue to an 85/15 one. However, the second setup only comes to pass if the app manages to retain a user’s loyalty for over a year. It comes across as a sort of rewards system which makes sure app developers are on their toes doing all they can to ensure people are utilizing their products.
Ultimately, this guarantees that consumers will stick to Apple’s ecosystem. Meanwhile, Google is striking a slightly different path. According to insider sources, the search giant is also looking to move away from giving away 70% of app revenue to 85%. Unlike its rival though, the company plans to enforce this system immediately instead of forcing developers to retain patrons for a year.
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At first glance, Google’s method benefits the people behind the app the most since they’ll be getting a larger slice of the pie without having to go through hoops to earn it. They’ll probably have to work on their iOS apps too though, since Apple’s clout can’t be ignored.
Google is already in the testing phase of the new 85/15 split revenue model. It’s got its eye on a couple of entertainment companies so far. There’s no word on when exactly the firm plans to roll out the new pricing plan.