Mountain View, Calif., — Developers who have lost enthusiasm to develop applications for Google’s mobile Android platform because apps have only been available for free should now have the reason to rejoice in 2009, as Google now plans to help Android applications developers earn 70% of the revenue through its Android App Market this year, and Google will use the rest to cover carriers and billing-settlement fees.
Google plans to commence delivering paid applications for sale as early as the first quarter, according to reports.
Google has assured a way for developers to earn cash by selling their applications since its App Market debuted in October. The payments may spark a flood of apps to compete with Apple, Inc.’s App Store and RIM’s BlackBerry store.
On his blog, mobile-application developer Martin Drashkov is among those who have reported receiving an e-mail from the Android Market last week, confirming the coming shift to paid applications, which should help it compete better against Apple’s iPhone Apps store. The e-mail from Eric Chu states:
“Android Market will support priced applications starting early Q1 2009, as we had originally stated last fall. Given the country-by-country work required to set up payment support for developers in different countries, we will enable priced app support in Q1 for developers operating in these countries, in the following order: (1) United States and UK; (2) Germany, Austria and Netherlands; (3) France, Italy and Spain.”
He also stated that new European countries will be added to the Android Market by the end of the first quarter, but said that paid applications will arrive later, as it requires time to set up local online payment solutions. Additionally, he urged developers in the supported countries to take advantage of the new feature to finish their applications, including determining the appropriate pricing strategy for their applications.
“A lot of people have noted that the Android’s Market is currently somewhat outclassed by Apple’s App store, both in terms of the number and quality of the applications available. However, with the arrival of priced applications, and the profit motivator, we should finally see a competitive answer to Apple’s App Store as developers start releasing apps they have been working on but were unable to easily sell,” Drashkov wrote on his blog.
Some developers have been unwilling to release Android applications for free. For example, EA Games, makers of such popular games as Tiger Woods 09 and Madden 09, told Gizmodo.com last September that it would wait until paid applications could be offered before joining the Google Market.
Chu mentioned that applications will not be available automatically in countries selected by the Android Market unless developers choose the newly added countries as a publication target for their software.
Google has said that developers of paid applications in the Android Market will keep 70 percent of the revenue. The remainder of Android app sales will go to carriers and billing settlement fees, according to Google’s Android Developers blog.
“We believe this revenue model creates a fair and positive experience for users, developers, and carriers,” wrote Google’s Eric Chu on the blog last October.
Drashkov also mentioned that Android Market will expand to Germany, Austria, the Czech Republic and the Netherlands in the first quarter.
“These release will no doubt coincide with T-Mobile’s launch of the G1 in these countries and developers will have the ability to make versions of their app available only in those markets,” he wrote.
Apple’s App Store allows developers to keep 70% of the revenue generated from application sales. RIM’s Blackberry Application Store promises to give developers 80% of the revenue when its store launches in March.
Michael Gartenberg, vice president of mobile strategy for Jupitermedia, is eager to see what types of apps show up at the Android Market now that there is an incentive for developers. “Up until now, there was no way to be compensated for your work,” he noted. “That is fine for some folks, but not for many.”
It is perhaps that the encouragement could trigger a wave of Android applications. Developers have been flocking to Apple’s App Store and preparing to launch applications on the Blackberry Application Store to earn cash and perhaps some notoriety.
“If you believe you have a real hit application on your hands, there is a possibility that you might not be thrilled about giving it away,” Gartenberg said. “This is an important milestone. You really have to provide the revenue opportunities for developers if you are going to jump-start the marketplace.”
This policy amendment to Google’s growing app store, in essence is to compete with the already very successful Apple iPhone AppStore, could bring forth a new number of developers to help increase the number of applications in its marketplace, helping to push creativity in the global trend of mobile applications.