Google is in negotiations with carriers to get more revenue from its app store, called the Google Play Store, according to Macquarie analysts Eugene Jung and Ben Schachter.
Jung says Google is trying to increase its Play store revenue in Korea. Schachter believes this is happening outside of Korea, too.
Here’s how Google’s revenue currently works, according to Macquarie: Google gives 70% of an app’s revenue to the developer. It gives 25% of that revenue to the carrier. It keeps just 5% for itself.
Jung says Google wants to keep 15% of app store revenue, and give the rest to the carrier.
Schachter believes Google’s Play Store did ~$350 million in revenue in May. He got that number using data from app analysis firm Distimo. At its current revenue share, that’s $17.5 million. With the new terms its pursing that would be $52.5 million.
If Google successfully negotiates with carriers to keep 15% of Play revenue, Schachter thinks Google could bring in $500 million in Play store profits in 2014.
For Google, $500 million isn’t huge money, but it’s good for Android, which is probably not making any money as a standalone product.
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