Google is going to take a lower cut for subscription based apps

Apple just announced a reworked revenue sharing model for subscription based content and service applications on the App Store. After the first year of a subscription service, the new model gives out developers 85 percent of the revenue, while Apple keeps 15. For the first year, Apple will take the regular 30 per cent, while developers get 70 percent. According to a report in Recode, Google is going to offer the same terms to its developers, with a crucial difference. There is no first year term with different revenue sharing calculations. Google will start offering 85 per cent of the share of revenues from the start itself. Unlike Apple, Google does not require tracking of the subscriptions to check if they have lapsed, and if the second year onwards rule is applicable or not. The move makes it more attractive to developers than the App Store model. Apparently, Google has already been testing the new revenue sharing terms with a select number of entertainment companies. This means mostly content based offerings including tv shows, podcasts or periodicals. The revenue sharing model is a way for Google to attract more content on its Play Store. It also slightly reduces the dependence of Google on ads for its revenue stream.  There is no official announcement by Google yet on when the new scheme will be implemented.