Finally, coding that great idea for an app you thought off in high school might actually turn a profit. Previously, your “Kitten Cuddles” app would have only netted you 70% of its price; Google would take the remaining 30% cut.This has been a stickler for many Android app developers and while it may not seem large, it could be the difference between making a profit or breaking even. However, the technological monolith has now stated that they will give app developers a larger cut, 85% to be exact, whilst reducing the cut Google takes down to 15%.
The 85-15 ratio is a new trend, with Apple being the first to adopt it for their app ecosystem. Instead of keeping 70% of all revenue generated from subscriptions, developers coding for Apple apps will be able to keep 85% of revenue, once a subscriber has been paying for a year. This is part of a new revenue model where users subscribe to a service. Google has decided to adopt a similar plan, but with a bigger carrot: rather than requiring developers to hook a subscriber for 12 months before offering the better split, it will make it available right away.
So far both companies have been testing out the new model with some entertainment companies, but it is unclear when Google plans to roll out this new plan.
Source: Recode
