The variety of emoji subscription purchases on the South Korean messaging app KakaoTalk has dropped by a 3rd over the yr, mother or father agency Kakao stated in quarterly earnings name Thursday, blaming Google’s new in-app fee coverage, which forces apps to make use of Android-maker’s personal billing system.
KakaoTalk’s Emoticon Plus subscription service, which prices roughly $3.8 per 30 days, permits customers to entry limitless emojis. TechCrunch reported in June that South Korean app builders and content material suppliers stand to see their paid subscription and repair charges rise due to a current change in Google’s Play market that corners 15-30% fee price.
Kakao chief govt Whon Namkoong stated that the detrimental impression of Google’s new billing coverage is “inevitable,” including that the variety of Kakao discuss emoji purchases had dropped after Google launched its new fee coverage in June this yr.
“From the customers’ perspective, due to Google’s new in-app fee coverage, the [digital goods] value hurdle has gone up,” Namkoong stated. “Consequently, when you take a look at [KakoTalk’s] Emoticon Plus [subscription] service, the variety of new customers has gone all the way down to one-third of what we had seen over the yr.”
Kakao plans to work on countermeasures to answer the change, Namkoong stated. “We’re planning on working a promotion for customers, utilizing Google’s in-app fee, and in addition for our subscribers as a way to ensure we decrease the impression from the in-app fee within the second half of the yr,” he stated.
The U.S. tech large enforced adjustments to its in-app fee system in June this yr to cost transactions overflowing from non-game apps and different varieties of digital items together with over-the-top (OTT), music streaming, net cartoons, digital e-book apps and extra. The non-games apps, previous to the change, had been permitted to direct shoppers to exterior fee sources via in-app hyperlinks.
Google stated earlier this yr in blog put up that “all builders promoting digital items and providers of their apps are required to make use of Google Play’s billing system,” and clarified that apps utilizing exterior fee hyperlinks shall be faraway from Google Play Retailer beginning in June to adjust to Google’s new fee system.
Kakao runs two enterprise: the platform enterprise (Kakao Discuss, Kakao Mobility, Kakao Pay) and the content material enterprise (Kakao video games, Kakao Webtoons and Melon music streaming). The South Korean web firm posted its second-quarter income of $1.3 billion (1.82trillion WON), up 34.8% from the identical interval a yr earlier, and a web revenue of $77.3 million (101.2 billion WON) for the quarter, down 68% from a yr earlier.