Google announced on Thursday that it will reduce service fee for all subscriptions on Google Play from 30 to 15 per cent from January 1. It also said that it is reducing service fee to 10 per cent in the Media Experience programme in ebooks and on-demand music streaming services category.
We ve worked with our partners in dating, fitness, education and other sectors to understand the nuances of their businesses. Our recurring service fee drops from 30 per cent to 15 per cent after 12 months of a current subscription. But we ve heard that customer churn makes it difficult for subscription businesses to benefit from that reduced rate. So, we re simplifying things to ensure they can, said Samat.
Today, we re also making changes to the service fee in the Media Experience program to better accommodate differences in these categories. Ebooks and on-demand music streaming services, where content costs account for the majority of sales, will now be eligible for a service fee as low as 10 per cent, the blog stated.
Samat wrote in the blog that while app remain incredibly important for mobile phones, good services must also span across TVs, cars, watches, tablets and more. And we recognise that developers need to invest in building for those platforms now more than ever, he stated.
Google launched the Play Media Experience program earlier this year in order to encourage video, audio and book developers to help grow the Android platform by building cross-device experiences.
We will continue to engage with developers to understand their challenges and opportunities - and how we can best support them in building sustainable businesses, he said.
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