Among other changes this morning, Apple announced a new 85-15 revenue split with developers of apps that have subscriptions. Recode is now reporting that Google has had the same plan in mind for the Play Store, but with an important advantage.
With the App Store, the new revenue split only applies for customers that have been an active subscriber for a year. As a result, iOS developers have to incentivize customers and keep them hooked for a whole 12 months.
Google’s new model would go into effect without a wait period and thus benefit developers immediately. According to Recode, Google has been testing the new revenue model with certain entertainment companies as an incentive to get Play subscriptions to work with Google Cast devices, like the Chromecast.
Google has already worked with several video companies, but it’s unknown whether there are plans to roll out the new pricing strategy to all. The clearest benefit is for developers and Google wants the Play Store to be more competitive and profitable for the company.
However, consumers could also benefit by seeing cheaper subscription prices when signing up via an Android devices versus with an Apple product. By not having to forfeit as much to Google, developers could price services slightly cheaper.