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

android-developers.googleblog.com

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

#241

Post by bluesign »

kyrra wrote: post #161
shimfish wrote: post #106

What's also not being said here is that ~99% of apps on Google Play don't make money this way either. Due to a combination of Android user's reluctance to spend money on apps at all and the rampant piracy that Android's open model makes trivially easy, most developers only way to make money is through in-app advertising, which this change obviously makes no difference to. Google Play is mostly a pyramid scheme. Devel…

(googler opinions are my own) At least according to this site[0], Google play moves $38B, while Apple moves $72B (annually). So people are spending money on Google play, just less. But I also believe more people have android phones vs iPhones, so that dilutes the per person revenue even more. [0] https://www.statista.com/statistics/444476/google-play-annua...

Android phones are approx. 2.5x more than Apple phones worldwide

Also Play store has 1.5x more apps.

So almost 8x difference for developers. (per person)

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

#242

Post by hertzrat »

quesera wrote: post #216
briandear wrote: post #179

Earlier quoted context omitted.

If $100/yr is too much, then it’s very likely your app isn’t profitable. A person doesn’t say “I would sell my product at Target, but spending money on gas to deliver it to their distribution center is too expensive.” Literally, it’s $8.33 per month to be a part of the Apple Developer program. If your app isn’t making that much in a month, then your app isn’t very good or you’re bad at business. No disrespect intende…

I pay $100/yr to keep a few free apps (no in-app purchases, no ads, no commercialization attempts at all) in the App Store. I get emails all the time from people who want to buy the apps and ruin them. I've been doing this for about ten years. Now, my development time is worth a lot more than the accumulated $1000. But it's free time, and I volunteer it. I also recognize the value of $100/yr as a "bozo filter" to App…

I read a few years ago that only about 0.01% of Android apps make enough money to cover development costs. It isn’t the end of the world if there were slightly less competition driving down peoples revenues

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

#243

Post by [deleted] »

andechs wrote: post #214
sidlls wrote: post #177

Earlier quoted context omitted.

It is just true. Compared to the only other major mobile app ecosystem, Android users are relatively cheap. That doesn’t mean nobody pays or that nobody who distributes an app earns money through purchases. It just means that on Android it’s a smaller group than on, say, Apple.

I'd actually argue that Android users have more options, thus the market price for apps is reduced by the amount of supply. When you're looking for a "Todo" app, there's 1000's on Android, and many or most are free. Many people might be better served by a quality app, but when the alternatives are good enough, it's a hard sell.

[deleted]

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

#244

Post by skizm »

ehsankia wrote: post #238
skizm wrote: post #229

This would have accounted for around 5% of the Play Store's revenue if applied for 2020: https://www.cnbc.com/2021/03/16/google-apple-giving-up-less-...

Giving 5% of your revenue (not profit) right back into the pockets of smaller developers seems pretty great overall. Did people expect them to cut their revenue in half?

I expected nothing, just providing context. I agree this is very positive and costs Apple and Google very little. Seems like a win win.

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

#245

Post by enos_feedler »

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.

I believe that Google's goal is to show regulators that Apple has market power. The easiest way to demonstrate that is to follow what they do and make it look like they are in control. The reason I believe this is that it is uncharacteristic of Google to blatantly copy something like this over the years, yet it is clear they are fast following all of Apple's decisions around the app store. I would expect Google to try and differentiate and come out with a new, competitive way to make the developer ecosystem happy.

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

#246

Post by danybittel »

occamrazor wrote: post #231
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…

For physical products in physical stores the cut can be higher than 50%. Online referrals can be up to 20%, without the actual distribution.

That's a great point, so do the physical stores get 50% of an iphone or ipad sale?

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

#247

Post by JKCalhoun »

dragonwriter wrote: post #199
nsomaru wrote: post #192

Earlier quoted context omitted.

Why leave out the only actual platform that android competes with, iOS?

I don't think Android really significantly competes with iOS or vice versa. Android and iOS are almost entirely independent markets. The competition for Android devices is other Android devices. The competition for iOS devices...isn't.

That's an interesting take. I think you're right. I don't think that was the case 8 or so years ago, but I agree it appears that way now.

(Anecdotal: gave my dad two hand-me-down iPhones. Because of the cost he was never going to buy one (on a fixed retirement income after all). Him and his wife having used iPhones now seem to have crossed over. I suppose I'll have to keep sending him over my old phones from now on.)

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

#248

Post by [deleted] »

shimfish wrote: post #106

What's also not being said here is that ~99% of apps on Google Play don't make money this way either. Due to a combination of Android user's reluctance to spend money on apps at all and the rampant piracy that Android's open model makes trivially easy, most developers only way to make money is through in-app advertising, which this change obviously makes no difference to. Google Play is mostly a pyramid scheme. Devel…

[deleted]

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

#249

Post by enos_feedler »

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.

I agree it is very odd. For other reasons too, including how Google tries to differentiate their smartphone ecosystem from Apple to try and compete. Innovating on a business model for developers would be a good differentiator.

This is why my theory for this blatant copying is for regulatory reasons. The app stores are under scrutiny right now and it is best for Android, which has very large market penetration with the Play Store, to make it look like Apple is in control of the market. Just my theory.

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

#250

Post by Tronno »

danShumway wrote: post #49
nmfisher wrote: post #36

Earlier quoted context omitted.

> Further evidence that developer pressure and legal pressure on smartphone platforms work, that they aren't a waste of time. Sure, if you're Epic. For the rest of us minnows, we just have to play the hand we're dealt.

This change directly impacts minnows, it's a revenue cut for companies making less than a million dollars, not more. And if your point is that it took a company as large as Epic raising a fuss to get that change, well... why should I care? It's still a change that will help smaller developers. Honestly, I don't get HN's position on this. When Epic sued, people complained that Epic was too big and progress would only…

HN is not a hivemind, those were all different people with opposing views.
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