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Revenue Sharing Structure of Google Play Changed

A significant change in the revenue sharing structure of Google Play apps has been announced by Google today. The difference can significantly alter the fortunes of independent developers or small companies that rely solely on the Android platform’s app store for revenue. Starting from July, Google will be taking a 15% cut of the first $1 million in annual Google Play revenue.

That is lesser than the previous 30%. The 30% figure will still apply to the revenue over $1 million every year. The company claims that 99% of the developers with apps and content on the Google Play Store will reduce the amount of fees paid to up to 50%. This looks like a very similar deal to what Apple announced late last year.

Last year, it declared that developers making under $1 million would soon start making a 15% payment to the platform rather than the historical 30%. However, it is different in a way that could be consequential for many developers. It is not very generous, but it is to some extent better than the previous one.

Apple also applies its lower 15% rate to a developer until they exceed $1 million in revenue in a given year. After the $1 million revenue exceeds, the higher 30% will be applied. Although, the Google Play store still charges only 15% for the first million even if the revenue is $5 million. For example, if a developer earns $1.5 million in revenue, he has to pay 15% on $1 million and 30% on the $50,000. However, this is not the case in Apple.

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