Google Play Store seen as license to print money, could soon bring in $5B a year profit
You don’t have to browse around Google’s Play Store long before you get a sense of the vast scale of it all. There are over a million apps available for purchase, tens of thousands of songs, and more books, movies, and TV shows than you can shake a stick at. And for every dollar that passes through the Store, whether it’s headed for a developer or a Hollywood studio, Google takes its cut. As a result, the service has become a huge money-maker for the company, but just how much is it really profiting? A new analyst report places the figure at around $1.3B, with projections for some rapid growth.
The way the estimates go, Google is probably bringing in about $4.2B in app sales alone, with Google keeping its $1.3B slice. That breaks down to an average of $4.59 a year spent on apps for each Android device out there – in spite of all the other media Google makes available for purchase, this report believes that apps are by and large the main source of Play Store income.
But the growth is the really killer part here. While per-device spending is only expected to creep up slightly, the growth of the Android market as a whole could push Google’s Play Store profits up to $5.2B by 2017.
Of course, Google’s not the only one practically running a mint with its app store, and Apple has been disclosing some record payouts to developers itself. The question for both companies now is how that growth might shift over the next few years.