Play Store Commission Slashed for Subscriptions Apps

October 25, 2021
|
Team Nami
Phone and Tablet with Google Play Store

Google today announced a major change to the Play Store commission structure affecting subscription apps. Starting on January 1, 2022, all subscriptions sold by app publishers on the Play Store will incur a 15% commission.

This is a change from the current 30% / 15% commission. Presently, the commission is 30% during the first 12 months of a subscription. Then, the commission goes to 15% for each auto-renewing period thereafter.

The current commission incentivizes long-term subscription retention which has been a challenge for many app publishers.

According to Google, the Play Store commission change was motivated by discussions with app publishers like Duolingo and Bumble. Churn rates in year 1 can be high in categories like dating and fitness.

“We’ve worked with our partners in dating, fitness, education and other sectors to understand the nuances of their businesses. 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.” - Sameer Samat, VP Product for Android and Google Play

The reduced Play Store commission is welcome news for app publishers, but only a part of the story. In 2020, consumers spent nearly 2x more on the App Store than Google Play. It remains to be seen if Apple will follow Google’s lead.

While a short term win for app publishers, it doesn’t matter what the subscription commission if they don’t reduce churn. Ultimately, the best way to combat churn is to build a customer base of happy subscribers.

Sign up to our newsletter

Get the latest articles delivered straight to your inbox.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Nami logo white

Focus on your app experience

We'll handle the subscriptions.

Portrait photo of blog author
Team Nami

The Nami ML team is on a mission to help app developers succeed in the modern App Economy.

Similar articles

Read similar articles to this one

Quotes mark

Testimonials

Some client stories

"We spent hours researching the best ways to implement subscriptions and after many failed attempts we found Nami. We were able to go live with subscriptions in our Apple and Android apps in a matter of days."
Client portrait
Brian Pedone
Founder
Quiet Punch
Quiet Punch
"Nami helped us achieve a cross-platform solution for managing and sellingsubscriptions on Apple and Google. The Nami platform was flexible enough to handleour business requirements for in-app purchasing, allowing us to focus on our client'score domain and domain logic.”
Client Name
Client role
Company name
"Nami helped us achieve a cross-platform solution for managing and selling subscriptions on Apple and Google. The Nami platform was flexible enough to handle our business requirements for in-app purchasing, allowing us to focus on our client's core domain and domain logic."
Melody Morgan
Director, Engineering
Diamond
Diamond
"We spent hours researching the best ways to implement subscriptions and after many failed attempts we found Nami. We were able to go live with subscriptions in our Apple and Android apps in a matter of days."
Brian Pedone
Founder
Quiet Punch
Quiet Punch
"It took a couple of hours to incorporate their easy to use SDK. Nami provides a monetization machine learning solution, a paywall displaying what a user can purchase, and a whole suite of other useful features. As a result, it saved me development cycles so I could focus on other important things."
Mark Lapasa
Android Developer
Toronto App Factory
Toronto App Factory
"After spending a few days trying to implement subscriptions, I found Nami ML. I was able to complete in-app subscriptions within less than 3 hours."
Tanin Rojanapiansatith
iOS Developer
Transcrybr
Transcrybr

The best subscription experience starts with Nami

Get connected with one of our product experts to get started with your journey with Nami today.