Google: Advertising Not Enough?
August 1, 2019
DarkCyber noted a write up called “Google Is Testing a Monthly App Subscription Service for Android.” The write up asserts:
Google has been testing a monthly subscription service for apps and games, under the name Google Play Pass. The move to a subscription model has been rumored since before Apple introduced its ‘Apple Arcade‘ offering earlier in the year. The package looks almost ready to launch, with $4.99 (£4.12 in rapidly deflating Borisbucks) set as the monthly fee – not a lot considering it gives access to ‘thousands’ of apps, all without adverts and In-App Purchasing (IAP).
The revenue streams such a fee would produce are subject to the assumptions plugged into a spreadsheet. Use the “right” assumptions — that is, the ones with the biggest payback to the GOOG — and the analyst can plot the take off trajectory of a Chengdu J-20.
DarkCyber has a few questions:
- Are the likely economic penalties some government agencies may impose on Google sufficiently dire to warrant this “stable” revenue play?
- Are advertising revenues weakening so that an “old school” money making model is needed?
- Is Google assembling a billing model to support its initiatives in online gaming; for example, subscribers get access to pre release digital “goodies” for gamers?
Worth monitoring because this change is another signal that the “old” Google may be fading.
Stephen E Arnold, August 1, 2019
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