Sunday , February 25 2018

Google might be lining up for more of a take from Play Store sales

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.

Chris Rowland   Editor and Publisher

Chris has been at the forefront of smartphone reporting in Australia since smartphones were a thing, and has used mobile phones since they came with giant lead-acid batteries that were "transportable" and were carried in a shoulder bag. He saw the transition from AMPS to GSM, loved the Motorola StarTac, and got into Palm technologies in a big way. The arrival some years later of the original iPhone, and then the early Androids, awoke a new interest in mobile technology, and Chris has been writing about it since.

Today, Chris publishes one of Australia's most popular technology websites, Ausdroid. His interests include mobile (of course), as well as connected technology and how it can make all our lives easier.

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4 Comments on "Google might be lining up for more of a take from Play Store sales"

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Level380
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Level380
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
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Paul Walker

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

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Matt

Remember when there were no paid apps on optus?

NOZ
Valued Guest

How does the carrier aspect work?

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