Google, the American technology giant has announced that it will take a smaller cut from publishers’ Play Store subscription fees. These changes will come into effect from January 1, 2022.
In a new blog post from the American technology giant, Google stated that will demand 15% of publishers’ subscription fees on the Play Store “from day one.”
As of now, Google only demands a 15% cut from the publishers’ subscription fees if and only if the user holds on to a subscription for a year. However, if the user unsubscribes before a year, Google will take a whopping 30% cut out of the subscription fees. This target is pretty tough to reach for growing publishers and Google acknowledges this problem.
Google believes its new guidelines, which will come into effect next year, should ease the pressure on budding developers.
This new development is going to be great for growing publishers on the Play Store.
Also, Google announced new commission cuts for Play Media Experience program members. For e-book publishers and on-demand music streaming services, they can get service fees “as low as 10%.” Google believes the new rate should support creators better on the platform.
Google’s latest service fees changes are coming in just months after it announced changes to its in-app purchase demands from publishers. In March 2021, Google followed Apple’s footsteps by reducing its Play Store services cut to 15% for the first $1,000,000 of a publisher’s revenue.
This move is coming from Google months after a group of 36 US states filed an antitrust suit against the company for allegedly abusing the Play Store’s dominance. The American technology company is also struggling to overturn its $5 billion fine handed down by the European Union for abusing Android’s market spot.
So this may not be a goodwill gesture to publishers but a way Google can ward off legal pressure.