Google Play service fee reduced to 15% for the first $1M/year • Hacker News Board

Re: Google Play service fee reduced to 15% for the first $1M/year

#111

Post by londons_explore » Wed, Mar 17, 2021, 11:35 AM UTC

DeusExMachina wrote: post #94

enos_feedler wrote: post #73

Earlier quoted context omitted.

The primary reason they are doing it is because Apple did it. Same goes for every other rev share change that Apple has implemented.

That still poses the question: why did Apple do it? I believe the reasons are the ones explained by the parent comment. Also, I don't think Google mindlessly copies anything Apple does. Sure, part of it is pure competition. But I'm sure they also evaluated the reasons behind Apple's decision.

Note that this is 4 months later. That's about as quick as things like this can be done in a big organisation like Google where the decision has to go via policy, legal, engineering, translation, etc.

Re: Google Play service fee reduced to 15% for the first $1M/year

#112

Post by inglor » Wed, Mar 17, 2021, 11:36 AM UTC

londons_explore wrote: post #105

enos_feedler wrote: post #73

Earlier quoted context omitted.

The primary reason they are doing it is because Apple did it. Same goes for every other rev share change that Apple has implemented.

Which is odd... Users of the Play store and App store are a disjoint set. Very few users will switch from Android to iOS or back because in-app purchases are cheaper. Developers are generally forced to support both stores. There wouldn't seem to be any strong reason for both stores to pick identical fee structures - they aren't really in competition.

Startups sometimes (initially) develop applications for only one platform. Reducing the cost for (new) developers makes platforms more appealing to target (presumably).

Re: Google Play service fee reduced to 15% for the first $1M/year

#113

Post by jokethrowaway » Wed, Mar 17, 2021, 11:38 AM UTC

I wish developers would start using the browser more and rely less on the official stores which tax them unfairly.

I don't want to install your application, just give me a good web mobile experience.

Re: Google Play service fee reduced to 15% for the first $1M/year

#114

Post by cletus » Wed, Mar 17, 2021, 11:39 AM UTC

Better title: Google matches what Apple already did.

I said it about Apple and I’ll say it about Google: this is a PR move, nothing more.

Google really missed an opportunity here to put Apple in a tough spot by just cutting it to 15%.

Your biggest users of your payment infrastructure are also the most likely, most willing and most able to handle their own payments because they already do (eg Netflix, Epic).

If either company has reduced their cut to 15% for only their largest customers then this would make sense as a business decision. Doing the opposite is trying to stave off government intervention, nothing more.

The writing is on the wall for being the sole payments provider AND charging 30% for it. The only question is what they will be forced to do and (imho) you’re better off placating your biggest customers because they’re the ones who will likely sue you and lobby against you in the US/EU.

Re: Google Play service fee reduced to 15% for the first $1M/year

#115

Post by jokethrowaway » Wed, Mar 17, 2021, 11:40 AM UTC

Waterluvian wrote: post #107

danybittel wrote: post #41

It puzzles me that some people still think 30% is a reasonable cut for any kind of online store. Imagine you're 3 guys / girls and working on an app / game / .. whatever and one person only does "distribution" of the final asset. You are working one / two years or more on it, and one person only checks / verifies the final asset and organizes hosting. How is this in any way justified? And the days that person made an…

A reasonable amount is literally any amount the market will tolerate. Seems 30% nolonger cuts it in any of these stores.

Exactly this, it's harder to make money on the store these days, people can't tolerate high fees anymore

Re: Google Play service fee reduced to 15% for the first $1M/year

#116

Post by londons_explore » Wed, Mar 17, 2021, 11:42 AM UTC

im3w1l wrote: post #40

cat_plus_plus wrote: post #29

Earlier quoted context omitted.

You know that Android is open source and you can just sideload apps, install a 3rd party app store or replace entire OS with your own ROM right? What, your app/game is not valuable enough to the user to bother with unless it's a single click install without having to enter credit card? Well... Basically - Situation is not at all the same as with iOS - There is too much emphasis on friction-less low value installs and…

A third party app store can not automaticly apply updates to apps. The user has to explictly approve every update. This puts the play store in a privileged position of lower ongoing friction.

A lot of apps can do substantial changes to functionality with just serverside changes. App developers are already used to a good chunk of users having updates disabled. Those users update every 1 or 2 years whenever they get a new phone and reinstall your app.

Re: Google Play service fee reduced to 15% for the first $1M/year

#117

Post by rafaelturk » Wed, Mar 17, 2021, 11:43 AM UTC

jokethrowaway wrote: post #113

I wish developers would start using the browser more and rely less on the official stores which tax them unfairly. I don't want to install your application, just give me a good web mobile experience.

That's what we're doing. We're leaving both App Stores.

Re: Google Play service fee reduced to 15% for the first $1M/year

#118

Post by jokethrowaway » Wed, Mar 17, 2021, 11:43 AM UTC

dbrgn wrote: post #90

TLDR: Out of your firsts million dollars in yearly revenue that you make on Google Play, Google stoped billing you 300'000$ and now only bills you 150'000$. And they frame it in a way that suggests empowerment and goodwill. Seriously, when did fees of 15-30% for a service that you essentially cannot avoid as a software publisher become acceptable?

While I agree with you, most countries charge that and more in unavoidable taxes.

The difference being that you can choose not to partecipate in their private stores (eg. develop on the web) but it's much harder to escape taxes.

Re: Google Play service fee reduced to 15% for the first $1M/year

#119

Post by amelius » Wed, Mar 17, 2021, 11:44 AM UTC

CGamesPlay wrote: post #13

psaux wrote: post #8

Earlier quoted context omitted.

“ The App Store's standard commission rate of 30 percent remains in place for apps selling digital goods and services and making more than $1 million in proceeds, defined as a developer's post-commission earnings” [1] What is convoluted and worse? I am not a mobile Dev at this time, just going by what I see online. Edit: [1] https://www.apple.com/newsroom/2020/11/apple-announces-app-s...

If you make $999k in revenue, you will receive almost $850k in profit. If you make $1000k in revenue, you will instead receive $700k in profit. You're strangely incentivized to completely shut down your app as you approach the 1000k mark, unless you're confident you'll make it past the 1200k mark, where it's worth it again. Silly system.

Wealth distribution is exponential, meaning almost nobody will fall in the small revenue gap you mentioned.

Re: Google Play service fee reduced to 15% for the first $1M/year

#120

Post by Sebb767 » Wed, Mar 17, 2021, 11:45 AM UTC

himujjal wrote: post #101

deergomoo wrote: post #75

Earlier quoted context omitted.

They host the files and pay for the traffic, that's not insignificant at the scale of Google and Apple, even considering their enormous size. There was a story a couple of years back about how Apple's AWS bill was $30 million/month, I'd bet a large chunk of that is the App Store.

only 30 million? considering how much apple makes in profits from their app store thats a lot less

That's only servers - they still need developers, managers, reviewers etc.. Apple surely does not make a loss, but the server bill is probably a negligible part of the cost.