Google has lowered the costs for subscriptions and music streaming applications in the Play Store


Subscription prices have been reduced to 15%, while music streaming services have been reduced to as low as 10%

Google is changing its business structure once again as regulatory pressure on the Android Play Store grows. It has stated that new types of applications would be eligible to pay a charge that is substantially lower than the customary 30%.  According to the corporation, all subscription-based applications will now be charged a 15% fee. Besides, it is stated that Ebooks and on-demand music streaming services would also be eligible for a charge as low as 10%.

The lower prices for ebooks and music streaming applications are due to the fact that “content expenses make for the bulk of sales” and that the rates “recognise industry economics of media content verticals,” according to Google. Regulatory pressure and public pressure from firms like Spotify are unsaid but undoubtedly factors in Google’s decision. Signing up for a Spotify membership on Android now takes you to Spotify’s website, where you may enter your payment information.

The reduced music streaming price structure remains at Google’s discretion, both in terms of which applications are eligible and how low the fee will be. When asked how they can find out whether they qualify for the lower rates,  a Google spokeswoman stated that developers might examine programme requirements and express interest, and Google would follow up with further information if they were qualified.

In terms of subscriptions, Google’s former model was identical to Apple’s: 30% for the first year, 15% after that. The new adjustment simplifies this by giving developers a 15% discount right once, which is likely a significant incentive for them to migrate from one-time purchases to subscriptions. One reason for the shift, according to Google, is that customer attrition makes it difficult for subscription businesses to profit from the lower rate.

Google already has a policy in place that requires a 15% share of the first million dollars a developer makes through Google, which was implemented in March 2021. Because so many applications are ad-supported and hence free, the business says that 99 percent of developers qualify for a 15 percent or less service charge.

South Korea has ordered that Google’s Google Play ecosystem must accept third-party payments, and Google has stated that it would comply. Sundar Pichai, Google’s CEO, said in an interview with The Verge last week that Google Play income is critical to the broader Android business model.

The CEO emphasized that they don’t take a cut of device sales as well as carrier income. As a result, they must maintain their ecology in some way. They use a different approach. Google Play is a crucial channel. To be honest, it is the primary source of income. It is compatible with all Android devices. They’ll make that point plain, but they’ll have dialogues about it. The CEO will delegate the task of determining the best next steps to the team.

In-app purchases for games are a significant source of money. On one front, Google is fighting Epic Games in court over Fortnite, which isn’t available on the Google Play store, but it can be side-loaded through a relatively onerous process. A consortium of 36 state attorneys general has launched a lawsuit against Google over antitrust issues with the Google Play store.

We approached Google for comment, and a spokeswoman responded that Google had a long history of modifying Android and Play’s model based on input from their developer community on what they need to be successful on Play.

It remains unlikely that it’ll bring Fortnite back to the Play Store since it won’t qualify, and it’s unclear whether the decreased prices would satisfy regulators everywhere. The pressure on Google and Apple to reduce their app store fees is already showing results. Despite these adjustments, it appears that the pressure will lead to legal action either through the courts or through Congress

The source: