Google is halving its Play Store subscription fees

Google is halving its Play Store subscription fees

In the blog post, Google brought up a good point and a big challenge that developers have to face: customer churn. This is basically the process of losing customers. Many customers eventually leave a service once they no longer have a need for it or if it becomes too expensive to keep. This obviously equates to a reduction in revenue. During the first year, such a high fee coupled with customer churn can typically lead to a massive reduction in profit. Having lower fees will hopefully encourage other developers to jump on the platform.

While developers profit from app sales, subscription fees, and ad income, they must still pay the platform to host their programme. Developers must pay Google to host their apps on the Play Store, and they must also give Google a portion of their subscription income. However, according to a blog post, the firm plans to decrease subscription costs in half beginning next year. Google will reduce Play Store membership prices from 30% to 15%. When an app charges its customers a regular subscription price, Google will receive a portion of the earnings, as is customary. The firm will take 30% of the sales for the first year, then cut it in half.

Highlights

  • The Pixel 6 has a 6.4-inch 1080p+ AMOLED display that can run at 90Hz. It has 8GB of RAM, up to 256GB of storage, a 50-megapixel camera, and a 4,616mAh battery. This phone starts at a low $599. The Pixel 6 Pro has a 6.7-inch 1440p AMOLED display that can run at 120Hz. This phone has 12GB of RAM, up to 512GB of storage, the same 50-megapixel camera, and a 5,000mAh battery. This phone starts at $899.

  • The reduced fees will start in January. App developers will still need to pay the 30% fees for the rest of 2021, as the reduced fees will go into effect on January 1st, 2022. Google didn’t state whether subscription services established until then will still be at 30% for a full year or if all of the fees will suddenly drop to 15%. Google really flipped the script with its Pixel 6 phones. This generation marks several firsts for the phone line: this is the first Pixel phone to come with an under-display fingerprint scanner, the first to use a Google-made chip, and the first Pixel with a larger camera sensor.