Carrier Billing Makes Android Platform Lucrative

Sanjana May 12, 2012 0

People who don’t own credit cards or are uncomfortable to use them for digital transactions, buying things from Google Play Store can be quiet difficult. The good news is that the Play Store now enables customers to buy things

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and charge them as per their carrier’s bills. Initially the purchase was only confined to apps but Google included the options to purchase music, movie, and books.

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At present Direct Carrier Billing is available only for selected carriers in US, Germany, Italy, Japan, Korea, Spain, and in UK. But Google should consider adding more carriers and countries as the new billing option will assist app developers to expand their market and improve their revenue significantly.

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As per recent studies, the daily revenue that developers receive from Google Play is a fraction of what they recieve from the Apple’s App Store. But since these estimates are based on broad averages, they might not apply to all developers working on the Android platform. Puzzle game Triple Town’s developer, Spry Fox, has said that while the earning from Google Play lags behind Apple AppStore, the gap is not enough to justify the assessment that Android is a hard platform to monetize.

The Android version brings in 67 cents for every dollar that Triple Town earns on iOS. This opinion was supported by TinyCo of Tiny Village fame that made its revenue distribution public in three app stores. For every dollar that Tiny Village earns on iOS, the game developer gets 65 cents on Android. Spry Fox CEO has said that the user bases of the two platforms are

similar in terms of size and Google Play is a good source of revenue.

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Another developer reporting higher revenues than analysts estimate is Glu Mobile. Adam Flanders, the company’s senior vice president of sales and marketing has said that the conversion rate on Android is continuously increasing and Android platform offers a similar Average Revenue per User (ARPU) to iOS. This trend can be attributed to the introduction of international carrier billing option to several countries.

Carrier billing is a great source of revenue for many other Android developers that have higher conversion rate in countries like Japan and South Korea. Companies like DeNa and Robot Invader are bright examples of how carrier billing option leads to success in overseas markets. The combination of rolling out free-to-play games and allowing customers to make in-app purchases via

carrier billing is the key to generate more revenues for some developers.

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