Me-too Google to follow Apple, move from 70/30 split to 85/15 for subscriptions

“On Wednesday, Apple detailed major shake-ups coming to its powerful app store,” Mark Bergen reports for Recode.

“Those include a new revenue sharing model that would give developers more money when users subscribe to a service via their apps,” Bergen reports, “instead of keeping 70 percent of all revenue generated from subscriptions, publishers will be able to keep 85 percent of revenue, once a subscriber has been paying for a year.”

“Now Google plans to up the ante at its app store: It will also move from a 70/30 split to 85/15 for subscriptions — but instead of requiring developers to hook a subscriber for 12 months before offering the better split, it will make it available right away,” Bergen reports. “It’s unclear when Google plans to roll out the new pricing plan.”

Read more in the full article here.

MacDailyNews Take: More me-too from Our Lady of Perpetual Beta.

SEE ALSO:
Apple to reveal App Store 2.0 at WWDC: New subscription model, search ads, and more – June 8, 2016
Me-too Google: Uh, okay, we’ll do default encryption like Apple, too (it’ll just take several years to roll out) – September 18, 2014

19 Comments

  1. This just makes sense for both companies. Apple’s solution in particular, 85% after one year, is reasonable because of what we app developers are doing now. For those apps that offer subscriptions via in-app purchase, we’re encouraging people to renew outside the in-app purchase model. That means we get near 100% (after credit card or e-commerce’s cut). What we’ve been doing is to send an email to a customer (outside of the app, to keep from running afoul of Apple’s rules), reminding them to renew, and offering a link to click. This sends them to our own site to renew.

    Google’s move solves the same problem but less surgically than Apple’s.

      1. Well if it follows the usual trend the Fandroids won’t see this as copying at all while if Apple changes to making it active immediately it will of course be copying them. It is after all a myopic World many of them inhabit.

    1. Funny, I talked to a colleague of mine at the office and asked him why he went Android when he admits Apple offers more in terms of a coherent ecosystem and good resale values. For him, it’s all about price. He has a large family and to equip them with Apple devices would have been too costly. He picked up cheap Android tablets for $10.00. And, having access to free software was the second reason.

      1. Your colleague doesn’t know how to “think different.”

        In my family: kids get hand me down iPhones. They last a long time so we just hand down the old ones when upgrading. Also Apple has just as many free apps as Android. Upfront costs are a little higher, but over the course of 2 or more years Apple becomes cheaper.

        This is really obvious if you buy your phones outright. With carrier payment plans it is harder to see this – which is what they want so they can collect more profits from selling you cheap Android junk that won’t be useful after 2 years.

  2. I think this may be a Mandela Effect. I always knew that Apple had an 85-15 split for its App Store. Now this news comes out?? This is really shocking. In my timeline, Apple always used this split, and they also updated the Mac lineup annually, but then something happened. This new reality sucks.

      1. Is that what it was called in your universe?? It was the same for me. Then it changed to Appleberry Eye-Phone and now it’s Apple iPhone!

        This Mandela effect is freaking me out guys

  3. Why didn’t they just make it 80-20 all the time for everything like the rest of the universe uses? They just can’t touch anything anymore and make it simpler.

    (See 80-20 Rule)

  4. Me-too? Looks like the editors may need some remedial reading comprehension:

    “Google started running the new model over a year ago with video services as a way to get Play subscriptions to work with its TV streaming offerings like the Cast dongle.”

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