Google is now trying to get bigger cut of Android app sales: Report

Google is reportedly in talks with telecom
operators to get a bigger slice of the Google
Play app sales revenue. Business Insider is
quoting two analysts Eugene Jung and Ben
Schachter of Macquarie, who believe that
Google want to keep 15% of the cut
rather than the existing 5%.

In countries, where telecom operators have
carrier billing tie-up with Google Play,
Google gives 70 per cent of the app sales
revenue to the developers, 25 per cent to
the telecom operators and keeps the
remaining 5 per cent for itself. The company
now wants equal revenue division with
telecom operators.
Jung says that talks with telecom operators
are currently underway in South Korea;
however Schachter believes that Google is in
similar negotiations outside Korea too.
If Google manages to get telecom operators
on-board, its revenues will increase by
almost three folds and it will be able to bring
in 500 million in Google Play profits in 2014,
thinks Schachter.
For a business like Android that does not
generate any direct money for Google, even
500 million in profits is good.