Google has announced that it is halving its commission on the sale of in-app subscriptions from 30% to 15%. The change will take effect in January of next year.
The move mirrors one made by Apple last year, likely for the same reasons …
Apple had previously treated in-app subscriptions in exactly the same way as app sales, taking a 30% cut. Back in June of last year, it changed this to a 30% take the first year, reducing to 15% in subsequent years.
Charging 30% of subscription revenue strongly incentivises app developers to do everything they can to point users to alternative subscription channels, outside of the app. Those on tight margins, like Spotify, have been forced to charge more for in-app subscriptions to allow for the app store cut, something which has led to conflict.
It’s not the first time of late that the Play Store has followed in Apple’s footsteps. Last month, the company started testing lower 4K movie pricing after Apple announced that it would be offering the higher resolution at the same price as HD versions.