{"id":31900,"date":"2021-03-16T14:28:58","date_gmt":"2021-03-16T18:28:58","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=31900"},"modified":"2021-05-03T15:20:43","modified_gmt":"2021-05-03T19:20:43","slug":"google-play-store-drops-commission-to-15","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2021\/03\/16\/google-play-store-drops-commission-to-15\/","title":{"rendered":"Google Play Store Drops Commission to 15%"},"content":{"rendered":"<p><a href=\"https:\/\/www.macrumors.com\/2021\/03\/16\/google-to-lower-play-store-commission\/\">Joe Rossignol<\/a> (<a href=\"https:\/\/news.ycombinator.com\/item?id=26486737\">Hacker News<\/a>):<\/p>\n<blockquote cite=\"https:\/\/www.macrumors.com\/2021\/03\/16\/google-to-lower-play-store-commission\/\"><p>Google today announced that, starting July 1, it will be lowering its Play Store commission from 30% to 15% for the first $1 million of revenue developers earn using the Play Store billing system each year, as reported by <em><a href=\"https:\/\/techcrunch.com\/2021\/03\/16\/google-play-drops-commissions-to-15-from-30-following-apples-move-last-year\/\">TechCrunch<\/a><\/em>.<\/p>\n<p>Google estimated that 99% of developers that sell goods and services with the Play Store billing system will see a 50% reduction in fees.<\/p><\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/elkmovie\/status\/1371843708442841094\">Michael Love<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/elkmovie\/status\/1371843708442841094\">\n<p>Also kudos to Google for simply applying it to the first $1M rather than making a whole complicated program you have to apply for \/ get booted from if you go just over $1M \/ etc; hopefully Apple will grudgingly decide to do the same.<\/p>\n<p>Anyway the fact that as of July 1st none of my revenues will be taxed at more than 15% is going to open up some very interesting possibilities in terms of licensing.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/tapbot_paul\/status\/1371862837245665289\">Paul Haddad<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/tapbot_paul\/status\/1371862837245665289\">\n<p>I&rsquo;m happy to see more App Stores going down the 15% route but the &ldquo;progressive taxation&rdquo; nature of it just seems weird to me. It&rsquo;s not like the Store&rsquo;s cost\/unit go up as more units get sold. Just go 15% across the board.<\/p>\n<\/blockquote>\n\n<p>Neither do the store&rsquo;s costs go to zero when distributing free apps that monetize through advertising. The <a href=\"https:\/\/twitter.com\/TimSweeneyEpic\/status\/1371856471324028928\">weird<\/a> <a href=\"https:\/\/twitter.com\/mjtsai\/status\/1371894364834820101\">structure<\/a> is a great fit for Apple and Google&rsquo;s goals. It quiets most of the complainers and increases the supply of apps without greatly reducing the stores&rsquo; revenue, which mostly comes from a small percentage of top apps.<\/p>\n\n<p>Previously:<\/p>\n<ul>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2021\/02\/23\/arizona-bill-on-app-store-payments\/\">Arizona Bill on App Store Payments<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2020\/11\/18\/app-store-small-business-program-with-15-fee\/\">App Store Small Business Program With 15% Fee<\/a><\/li>\n<\/ul>\n\n<p id=\"google-play-store-drops-commission-to-15-update-2021-03-19\">Update (2021-03-19): <a href=\"https:\/\/appleinsider.com\/articles\/21\/03\/16\/apple-google-out-less-than-5-of-revenue-from-app-store-fee-changes\">Mike Peterson<\/a> (also: <a href=\"https:\/\/www.macrumors.com\/2021\/03\/16\/app-store-fee-reduction-apple-cost\/\">MacRumors<\/a>):<\/p>\n<blockquote cite=\"https:\/\/appleinsider.com\/articles\/21\/03\/16\/apple-google-out-less-than-5-of-revenue-from-app-store-fee-changes\">\n<p>If the App Store program was in place throughout 2020, for example, Apple would have been short $595 million in revenue. That&rsquo;s about 2.7% of its estimated $21.7 billion it makes form App Store commissions. Google similarly would have made $587 million less in revenue, or just about 5% of the estimated $11.6 billion in Google Play fees it collected in 2020.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/daringfireball.net\/linked\/2021\/03\/16\/google-play-15-percent\">John Gruber<\/a>:<\/p>\n<blockquote cite=\"https:\/\/daringfireball.net\/linked\/2021\/03\/16\/google-play-15-percent\"><p>70\/30 percent just feels harder and harder for Apple and Google to defend. Make it 85\/15 across the board and it all becomes simpler.<\/p><\/blockquote>\n\n<p>In the meantime, thanks to Epic and <a href=\"https:\/\/world.hey.com\/dhh\/google-affirms-the-duopoly-grip-by-following-apple-s-15-on-the-first-million-scheme-c772c319\">others<\/a> for improving the deal for us small developers. I don&rsquo;t think Apple and Google would have done this without them.<\/p>","protected":false},"excerpt":{"rendered":"<p>Joe Rossignol (Hacker News): Google today announced that, starting July 1, it will be lowering its Play Store commission from 30% to 15% for the first $1 million of revenue developers earn using the Play Store billing system each year, as reported by TechCrunch. Google estimated that 99% of developers that sell goods and services [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2021-03-16T18:29:01Z","apple_news_api_id":"a96d629c-ac1b-4173-b263-4b3ed88ccd90","apple_news_api_modified_at":"2021-05-03T19:20:48Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAABQ==","apple_news_api_share_url":"https:\/\/apple.news\/AqW1inKwbQXOyY0s-2IzNkA","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[248,101,51,784],"class_list":["post-31900","post","type-post","status-publish","format-standard","hentry","category-technology","tag-android","tag-business","tag-google","tag-google-play-store"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/31900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=31900"}],"version-history":[{"count":7,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/31900\/revisions"}],"predecessor-version":[{"id":32334,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/31900\/revisions\/32334"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=31900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=31900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=31900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}