Google decreases service fees on subscriptions on Play Store to 15%

In addition to reducing service fees on Google Play subscriptions, the search giant is also making changes to the service fee in the Media Experience program. Now, ebooks and on-demand music streaming services will be eligible for a service fee as low as 10%.

Google is reducing the service fee for all subscriptions on Play Store from 30% to 15%, starting from day one. This means that developers offering subscriptions will have to have to pay only half i.e. 15% as first-year subscription fees instead of 30%, effective January 1, 2022.

"Our current service fee drops from 30% to 15% after 12 months of a recurring subscription. But we've heard that customer churn makes it challenging for subscription businesses to benefit from that reduced rate. So, we're simplifying things to ensure they can," Google wrote in a blog post on Thursday.

In addition to reducing service fees on Google Play subscriptions, the tech giant is also making changes to the service fee in the Media Experience program. Now, ebooks and on-demand music streaming services will be eligible for a service fee as low as 10%.

Google says the new rates recognize industry economics of media content verticals and make Google Play work better for developers and the communities of artists, musicians and authors they represent.

Google has multiple programs to support and encourage its diverse app ecosystem, with the company saying that 99% of developers, who are subject to a service fee, qualify for a service fee of 15% or less. The additional changes announced today will further support its ecosystem of partners and help them build sustainable businesses, and ensure Play continues to lead in the mobile app ecosystem.

Commenting on the pricing change, Whitney Wolfe Herd, Founder and CEO, Bumble Inc., said, "Our partnership with Google has been a powerful one for our business, helping us to scale and ultimately playing a key role in advancing our mission to empower women globally. The pricing change they've announced will allow us to better invest in our products and further empower users to confidently connect online."