The tech giant, Google which provides its services through android, browsing, and YouTube is going to reduce the subscription fees. For now, the application developers of different applications are required to pay 30% of the subscription fee for the first year. The commission on subscriptions taken by Google Play will be lopped in half to 15 percent starting in January, vice president of product management Sameer Samat said in a blog post.
This Thursday, Google made an announcement that they will be lowering the subscription charges to half of what they charge the first year. It means that users will now have to pay 15% instead of thirty in the first year. Companies like Spotify and Netflix are criticizing Google for this move.
The mixing up of choices of the customers with reduced rates makes it difficult for them to get more benefits than they deserve. Google replied that they are trying to make things easier for the developers.
The new plan would be implemented from January, next year. It might encourage the other developers to switch from one-time payments to a subscription-based model. Companies that provide streaming services and on-demand music use most of the money to pay for their content will be eligible to pay only 10% as their service fee. It got criticized by other tech giants like Microsoft Corporation and also by smaller start-up companies.
Due to their fees, the users are deprived of options to choose from and that pushes the price of the application. In March they said that they will reduce the service fee of the developers on its store by half after making the first one million dollars they make as revenue annually. This move was also used by the biggest and richest company on our planet, Apple Incorporated.
This might reduce the profits made by Google in a year for quite a while. But it will surely increase soon due to the very same step. Some countries have passed laws against the tech giant to control and regulate the powers since they are not happy with their decision.
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