Apple recently announced that its app store will see some enhancements, and it did not take Google long to come up with a competitive offer for its own software market.
The main modification to the Apple App Store is the improved revenue sharing model, meaning that developers will get to keep a larger percent of coin when users subscribe to a service via their apps. The old revenue model was splitting the money after the following fashion: 70 percent went to the developers, while publishers kept 30 percent of all subscription-generated revenues.
The new approach takes developers' cut to 85 percent for subscriptions that are at least one year old. What is more, game subscriptions will also be allowed, adding to the existing streaming services and dating apps that were already subscription-based.
Google's response is its internally code-named Subscription 2.0, a tempting offer on its own Google Play app store.
Recode reports that the company will modify subscription profits between developers and publishers from 70/30 percent to 85/15 percent. However, instead of asking developers to register a user for 12 months before the better cut goes into effect, Google lets developers increase their profits immediately.
Insiders who wanted to maintain anonymity said that Google already verified the new division of profits with entertainment companies, and it seems that Apple explored the option before announcing it officially.
Google began to dabble into the new model last year, when it started to leverage video services as a means to make sure that Play subscriptions play nice with its TV streaming offerings, such as the Cast dongle.
The company did not officially set a date for the beginning of its new pricing plan. Through the move, Google aims to attract more developers to the Android side, while knowing very well that the higher-paying customers tend to flock to Apple.
Google has more plans up its sleeve to secure revenue, and revamping the Play unit is one of long-term commitments that the search media company made.
The company already sets itself apart from Apple by offering app coders the possibility of taking payments directly, thus keeping all the revenue. As a reminder, Apple asks for developers to go through the iTunes billing system, a thing that most coders do grudgingly.
A report from January pointed out that Google Play registered twice as many app downloads when compared to the Apple Store throughout 2015. However, keep in mind that Apple still leads in the revenue field by about $100 million.
It remains to be seen whether or not the new Google Play policy will wedge the difference.
