Google Makes 98% of Profit From Play Store via In-app Purchases

In a new report by analytics firm, Distimo, it has been proven that how powerful the bloodsucking Freemium modelling of apps is. A mammoth 98% of revenue that Google makes from the Play Store comes as a result of in-app purchases from these free apps.

Piracy has always been a huge issue on Android and while this method is a pain to live with, it has also proven to be a great way of combating privacy. As you would expect, the remaining 2% money comes in from paid apps and in-app purchases on these paid apps.

Google also makes about $12 million a day from the store, up from a paltry $3.5 million a year ago but behind Apple’s figure of $18 million a day. Also up, from 30% to 37%, is the percentage of worldwide app expenditure.

A huge amount of money was made via developing markets. A particular case was that of South Korea from where earnings increased by a stunning 759%.

So there you have it, the future that is. While we know for sure that you loathe freemium apps like Real Racing 3, Angry Birds Go! and Candy Crush Saga, they are certainly the way forward. Or at least until governments worldwide take a strict action against the piracy.

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