Today Apple announced a bunch of new policies that will be governing its app store. Among these was a new revenue sharing model which will increase the amount of money that developers get to keep when customers subscribe to their services for over a year. Google today also announced basically the same revenue sharing model for their own app store, Google Play, but with a major advantage – developers who get subscribers through Google Play will get this increased revenue as soon the customer subscribes; no year wait needed.
Before these models were announced, both for developers using the App Store or Google Play, when a customer subscribed to a service, Google or Apple got 30% of the cost of the subscription. Now with the new revenue sharing model, both companies will only be keeping 15%, leaving 85% of the total left for developers. The problem for developers who get subscriptions through Apple’s store though, users have to subscribe to the service for at least a year before the new rate kicks in. For the first year of a subscription via an app downloaded through Apple’s store the old revenue sharing model still applies. Google has generously lifted that restriction so any subscription started via Google Play will immediately be split via the new 15/85 guidelines.
We have no word at the moment when this new revenue sharing model will kick in on Google Play, but it seems like it will be sooner rather than later. Apparently Google has been testing this new split with some entertainment companies recently, and has even had this model up and running as far back as last year with some video streaming services.
It is good to see both of these companies working to give more money back to their awesome developer communities because without the developers these ecosystems would be nothing. And hey who knows, with the competition Google just started developers could soon be looking at even better terms from both.