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Google to decrease Play Store fee for subscription-based apps by 50%

Currently, developers must pay a 30 per cent membership charge in the first year and a 15 per cent subscription cost after that. 

Google to decrease Play Store fee for subscription-based apps by 50 per cent gcw
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New Delhi, First Published Oct 22, 2021, 11:53 AM IST
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Following concerns from firms such as Spotify over its pricing structure, Google said on Thursday that it is decreasing the charge that subscription-based applications must pay Play Store to 15 per cent effective immediately. Currently, developers must pay a 30 per cent membership charge in the first year and a 15 per cent subscription cost after that. 

In a blog post, the company said, "We've heard that customer turnover makes it difficult for subscription firms to take advantage of the lower rate. As a result, we're streamlining things to guarantee they can." The new structure will go into effect in January of next year, and it is expected to encourage developers to convert from one-time payment mechanisms to subscriptions. E-book publishers and on-demand music streaming services that use most of their revenues to cover content costs will now be eligible for a service fee as low as 10 per cent.

Also Read | Google's 'Find My Device' tricks: Here's how you can track your lost phone

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Google has been chastised by big corporations such as Microsoft Corp. and SpotifyTechnology SA and startups and smaller businesses. They claim the payments deprive customers of alternatives and drive up app pricing. The company said in March that it would reduce the service fee it costs developers on its app store by half for the first $1 million in income they generate in a year, a move similar to iPhone manufacturer Apple.

Also Read | Google adds new visual search feature, users can combine both images and texts

In other news, Google stated that users would soon be able to blend images and text in search results, which may help Alphabet Inc unit expand its position in e-commerce and online video domination. Within a few months, the new feature will be available through its Google Lens search tool. In May, Google said that advances in artificial intelligence software would enable this. Google launched a free Identify Maker programme for governments and organisations to create routes and address businesses and homes that are not yet included on Google Maps.

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