As we approach this year’s WWDC, Apple yesterday announced that they will be restructuring the revenue model for developers and will be shifting to an 85/15 split from 70/30 on a year subscription. Hence, instead of benefiting from 70% of the incoming revenue, publishers will be possessing 85% of the entire share. However, this approach requires a developer to retain a user for more than a year. Google, on the other hand, has decided to take this one step further with its new plans to attract developers.
Once the pronouncement goes official, developers who own subscription-based applications on the play store will intake 85% rather than 70% of the total revenue but in this case, they won’t have to wait for a year. App makers, as a result, won’t have to sustain a user for at least 12 months. Since the inception, they’ll be yielding from that 15% increase. Alike what’s rumoring around the Apple turnover, Google is also already testing this new alternation with a few entertainment organizations. Additionally, they’ve been following this split for over a year with their video services in order to manage Play subscriptions to work with its TV streaming offerings like the Cast dongle. It is right now unspecified when this alteration will roll out for everyone out there. However, given Apple’s developer conference nearing, it probably won’t take long.
Google has been executing a lot of actions that has led developers to support Android phones in spite of iOS’s extraordinary higher spending customer base. Their Play ecosystem is one of the major income sources outside advertisements for the California giant. Things, however, haven’t been easy with leading titles still incepting from Apple’s mobile platform. Moreover, unlike Apple’s requirement for payments to stream through the iTunes billing system, Google allows application owners to handle payments themselves providing a much more versatile environment. Android, although, still faces troubles with piracy, a crucial reason for them to maneuver onto a subscription based fee.