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

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.