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Google Play drops all subscription commissions to 15% from day one

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Following the program that Google started in March 2021, the company is now reducing commissions on all Google Play app subscriptions to 15% from the first day of service instead of a year.

Google’s previous commission on subscriptions was the same as Apple’s – 30% for the first year, and 15% after that. Google says that 99% of all subscription app developers are eligible for the 15% lower commission.

Additionally, it lowers costs for Play Media Experience Program participants. App developers in this program, most of which are e-book sellers and streaming music services such as Spotify, the fee will be reduced to 10%.

Our current service fee drops from 30% to 15% after 12 months of recurring subscription,

Deputy Head of Product Management Samir Samat said. “But we’ve heard that customer disruption is making it difficult for companies that sign up to take advantage of this lower price. So, we’re simplifying things to ensure they can.”

In March, three months after Apple announced it would cut developer fees, Google announced that the standard commission of 30% paid to purchase apps in the Google Play Store would be reduced to 15%. The change, which began on July 1, applies to the first $1 million in revenue generated using the Play Store payment mechanism each year.

After a developer exceeds $1 million in revenue for this year, fees will return to their usual level of 30%. Once the year ends, fees will drop again to 15%, until the developer once again exceeds $1 million in app sales and in-app purchases.

Apple’s program for purchasing the app at a lower fee is similar, but a bit more restrictive. Under Apple’s App Store Small Business program, if a developer exceeds $1 million, but becomes ineligible to participate the following year. If their revenue then falls below $1 million the following year, they can re-apply for the reduced rate the following year.

Google’s version of in-app purchases generates the first $1 million in revenue per year, and will automatically restart the following year, regardless of the previous year’s revenue level.

“With this change, 99% of developers globally who sell digital goods and services with Play will see a 50% reduction in fees,” he said at the time. “This is money that can help developers expand into a critical phase of their growth by hiring more engineers, adding to the marketing team, increasing server capacity, and more.”

The decision to make the fee reduction applicable to all developers regardless of size is said to be due to the continued need to pay for expansion. “Scaling the app doesn’t stop once a partner hits $1 million in revenue – we’ve heard from our partners who make $2 million, $5 million, and even $10 million annually that their services are still on their way to managed self-sufficiency,” states Samat.

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