Thursday, October 23, 2008

Google to share Android Market revenues with operators

It was widely reported yesterday that the revenue split for Android developers will be 70/30. Unlike the Apple App Store, the 30% in this case will be going to the operator (currently T-Mobile for the G1). Since the operator is going to be responsible for the billing and delivery, this makes sense. Not to mention that this is the traditional model pursued by operators and app developers.

I was happy to see that the split was 70/30. As anyone in the mobile content business can tell you, splits have been steadily getting less favorable to the developer over the last few years. I thank Apple for pushing 70/30 as the norm. Application developers shoulder virtually all the risk and as these marketplaces become more competitive so does the need to create more complex (read: more expensive to develop) applications.

I hope we continue to see more Android phones appear on other networks with the same model.

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