The Google HQ

In South Korea, Google is apparently in negotiation with local carriers to take a larger slice of the revenue pie from the Play Store, according to local analysts.

At present, Google’s revenue share in Korea looks like this – 70% of the proceeds go to the app’s developer, 25% goes to the carrier, and just 5% for itself. These figures don’t mean much if you can’t add them to some real data, so here goes, with May’s sales figures:

Breakdown Current % Proposed % Current $ Proposed $
Developer 70% 70% $245m $245m
Carrier 25% 15% $87.5m $52.5m
Google 5% 15% $17.5m $52.5m

As you can see, changing these percentages makes a big jump in Google’s earnings – $17.5m to $52.5m – and on an annual basis, this could bring Play Store revenue to well over $500 million. Half a yard might not be much to Google, which is worth over $300 bn, but it’s certainly not to be sneezed at.

Source: Business Insider.
Via: 9to5Google.
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Level380
Level380
6 years ago

I’m flabbergasted that ‘carriers’ even need to get a cut!? WHY?? I pay carriers for the data *IF* I download the app over 3G….. if I use wifi, then its no impact to them. I *BROUGHT* they phone outright, so nothing to do with them (even if its on a plan, its a ‘payment’ plan to own!) I *PAY* them for Phone/Data/Text services ONLY and thats all they should be getting money for! Up Next….. Carriers want a cut of revenue for all websites I visit that made money of advertisement. Cause yes, as crazy as this sounds, this is… Read more »

Paul Walker
Paul Walker
6 years ago

Is that a Korea thing? Carriers here don’t get a cut do they?

Matt
Matt
Reply to  Paul Walker
6 years ago

Remember when there were no paid apps on optus?

NOZ
NOZ
6 years ago

How does the carrier aspect work?