Google has halved its cut for subscriptions on the Play Store to 15%, from the previous 30%.
While previously Google’s cut would fall to 15% after the customer had maintained their subscription for 12 months, the 15% cut will now apply from day one to all developers with subscription-based apps.
The change, which is due to come into effect on January 1st next year, was announced via a blog post from vice president of product management Sameer Samat.
“Digital subscriptions have become one of the fastest growing models for developers but we know that subscription businesses face specific challenges in customer acquisition and retention. We’ve worked with our partners in dating, fitness, education and other sectors to understand the nuances of their businesses. 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.”
Google also revealed that certain ebook and music streaming apps will be eligible for a service fee “as low as 10%” going forward, as part of its Play Media Experience program.
While the subscription cut is different to your standard platform fee seen on many storefronts, the 30% cut seems to be going out of fashion. We reached out to a panel of industry experts just recently to discuss the move away from the 30% revenue cut.