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 |
| 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.
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 »
Is that a Korea thing? Carriers here don’t get a cut do they?
Remember when there were no paid apps on optus?
How does the carrier aspect work?