Meet the needs of developers with better business models

/ Sameer Samat, Vice President, Product Management

More than ten years ago, when we built the Android system and Google Play, we were also betting on a future: a free and open mobile ecosystem that can compete with the proprietary closed platforms that dominate the industry. We did not know at the time, what kind of business will migrate to the mobile platform, and what kind of applications will be successful. For simplicity, we have adopted an easy-to-understand business model: the vast majority of developers can publish applications for free on Google Play (currently 97% of developers can still publish applications for free). For developers who provide paid apps or sell in-app digital goods (currently only 3% of developers fall into this category), we charge a uniform 30% service fee. This model makes applications one of the fastest-growing categories in the software field. In addition, we choose to provide a free operating system and continue to invest service fees in the improvements and enhancements of Android and Play to ensure that device manufacturers all over the world can use it for free.

When we first introduced Android to everyone, we never expected that developers from all over the world could use their innovative spirit and creativity to bring us such an amazing new application experience. With the development of the ecosystem, more diverse business models have emerged to support various types of applications. We have made many important changes along the way, including the elimination of the "one size fits all" service fee model to ensure that all types of business can be successful. In order to support and encourage the diversification of the application ecosystem, we provide a diversified model instead of a single model.

The result of this is that apply to the 15% service rate, which is even lower than . We learned from developers in many industries and regions, and listened to their opinions, including developers such as Anghami, AWA, Bumble, Calm, Duolingo, KADOKAWA, KKBOX, Picsart, and Smule. Here we want to announce further adjustments to the business model to further support the partner ecosystem, help them build a sustainable business, and ensure that Play continues to stay ahead in the mobile application ecosystem.

Subscription service fee reduced to 15%

Digital subscription has become one of the fastest growing business models for developers, but we know that subscription business has special challenges in acquiring and retaining customers. We work with partners in the dating, fitness, education and other industries to gain insight into the nuances of their business areas. Currently, our service fee will be reduced from 30% to 15% for subscriptions retained for 12 months. We listened to feedback and learned that it is difficult for the subscription business to benefit from the reduced rates due to loss of customers. Therefore, we are simplifying the rates to ensure that your subscription business continues to grow.

In order to support the specific needs of developers who provide subscription services, starting from January 1, 2022, Google Play will be reduced from 30% to 15%, starting from the first day .

For developers who provide subscription services, this means that the subscription service fee for the first year will be directly halved. Regarding this change, we have received positive feedback from our developer partners:

The cooperation with Google has produced a powerful boost to our business, helped us expand our scale, and ultimately played a key role in advancing the mission of empowering women worldwide. Google’s adjustments to rates will enable us to better invest in our products and further empower users to enter the online world with confidence.

——Whitney Wolfe Herd, founder and CEO of Bumble Inc.

Everyone learns differently, and every developer is different. We are happy to see Google continue to work with the ecosystem to find a model that works for developers and platforms. The reduction in subscription fees will help Duolingo fulfill its mission of popularizing language learning more efficiently.

—— Luis von Ahn, Co-founder and CEO of Duolingo

Better cross-platform experience

Applications are still very important for mobile phones. Nowadays, excellent services must also cover platforms such as TVs, cars, watches, and tablets. We recognize that today's developers need to invest resources more than ever to build on these platforms.

Earlier this year, we launched the Play Media Experience program to encourage video, audio, and book developers to help the Android platform by building beautiful cross-device experiences. Developers participating in the program can have a service fee as low as 15% when building a multi-screen experience.

Now, we are also announcing adjustments to the service fees of the Media Experience plan to better adapt to the differences in different application categories. For e-book and music streaming media on-demand services, the content costs account for most of the sales. Now developers of these types of applications can the service fee to 10% . The new charging standard is in line with the economic characteristics of the industry in the vertical field of media content, and can make Google Play better serve developers and the communities of artists, musicians and authors they represent. You can go to official website for more information.

We will continue to keep in touch with developers to understand the challenges and opportunities they face, and how we can do our best to support developers to build sustainable businesses. Android Developer Summit held from October 27th to 28th (Pacific Time). You will learn more about the latest tools, APIs and technologies that help developers increase productivity and create better applications. The latest developments.

For more information about Google Play and its service fees, please go to the Play Management Center help page to view FAQ .