Google tipped to reduce app revenue with newsstand

Internet giant Google is set to launch a new program for Android devices that will see the company take less revenue from app sales than it has in the past as part of a newsstand project.

The Wall Street Journal has reported the company is set to reduce its percentage of revenue, currently set at 30%, in order to provide customer data regarding app buyers.

It is understood the newsstand will provide content from magazine and newspaper publishers, while Google would reduce its usual 30% cut in order to attract more content providers.

If the plan goes ahead, it would place pressure on other app distributors, such as Apple and Nokia, to reduce their rates, given the 70-30 industry standard.

Al Hilwa, program director at IDC, told Information Week that the decision could be a reaction to developers feeling the 30% mark is too high.
“For tablets, eBook reading and magazine reading are going to be very important,” he said. “Looking at the growth trajectories of these markets… I wouldn’t conclude that the Android Market needs a lot of goosing to grow.”