Skip to main content

Google Play Store profitability

See All Stories
Site default logo image

Google eyes $0.5B Play Store profits by keeping more of the cash

Photo: http://www.victusspiritus.com

Business Insider reports that Google is renegotiating its Play Store revenue share arrangements in Korea, and is likely doing the same in other markets, with a view to increasing it’s profits from the app store to half a billion dollars next year.

Here’s how Google’s revenue currently works, according to [analyst firm] Macquarie: Google gives 70% of an app’s revenue to the developer. It gives 25% of that revenue to the carrier. It keeps just 5% for itself.

Jung says Google wants to keep 15% of app store revenue, and give the rest to the carrier.

Half a billion is relatively small-beer to Google, but BI speculates that the move could be designed to make the Android project – widely believed to be a break-even endeavour at best for Google – profitable.