Samsung Revamps Revenue Distribution for Galaxy Store to Attract Developers
Conflicts over app store fees often arise between platform owners and developers. In a bid to attract fresh talent in app and game development while maintaining the loyalty of current creators, Samsung has announced significant updates to its revenue sharing model for the Galaxy Store.
New Revenue Sharing Model Set to Launch
Effective May 15, developers will retain a substantial 80% of their earnings from their applications, with only 20% being allocated to the Galaxy Store. This marks an increase from the previous split of 70% retention for developers versus 30% for the store. This revised distribution applies universally across all paid applications—including games, themes, as well as both consumable and non-consumable in-app purchases.
A Comparative Look at Other Platforms
To contextualize this change, it’s worth noting that Google Play Store maintains a similar revenue split of 70/30; however, it provides more favorable terms for smaller developers. For those earning less than $1 million annually, Google reduces its fee to just 15%, allowing these creators to keep an impressive 85% of their revenues.
The Impact on Major Game Developers
Noteworthy is Epic Games’ decision to withdraw its renowned titles like Fortnite from both Google Play and Apple App Stores due largely to hefty commission structures. Interestingly, Fortnite was still available on Samsung’s platform until mid-2024 when Epic decided on its removal based predominantly on concerns regarding newly implemented sideloading regulations. Whether this new revenue arrangement might convince Epic Games to reintroduce its products remains uncertain; they now operate their own marketplace—Epic Games Store—with a notably lower fee structure of just 12%. Additionally, ongoing legal disputes concerning Samsung’s Auto Blocker settings add another layer of complexity in these negotiations.
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