Friday 5 July 2013

Google trying to get bigger cut of Android app sales: Report

Google is reportedly in talks with telecom operators to get a bigger slice of the Google Play app sales revenue. Business Insider is quoting two analysts Eugene Jung and Ben Schachter of Macquarie, who believe that Google want to keep 15 per cent of the cut rather than the existing 5 per cent.

In countries, where telecom operators have carrier billing tie-up with Google Play, Google gives 70 per cent of the app sales revenue to the developers, 25 per cent to the telecom operators and keeps the remaining 5 per cent for itself. The company now wants equal revenue division with telecom operators.

Jung says that talks with telecom operators are currently underway in South Korea; however Schachter believes that Google is in similar negotiations outside Korea too.

If Google manages to get telecom operators on-board, its revenues will increase by almost three folds and it will be able to bring in 500 million in Google Play profits in 2014, thinks Schachter.

For a business like Android that does not generate any direct money for Google, even 500 million in profits is good.

No comments:

Post a Comment