Cocoa says emoji subscription purchases dropped by a third due to new Google in-app policies

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South Korean messaging app KakaoTalk’s emoji subscription purchases dropped by a third in a year, parent company Kakao said in its quarterly earnings report Thursday, blaming Google’s new in-app payment policy that forces apps to use its own Android maker. . billing system.

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KakaoTalk Smiley Plus the subscription service, which costs approximately $3.8 per month, allows users to access an unlimited number of emoji. TechCrunch reported in June that South Korean app developers and content providers will face an increase in fees for paid subscriptions and services due to a recent change in the Google Play marketplace that caps fees at 15-30%.

Kakao chief executive Won Namkoong said the negative impact of Google’s new billing policy is “inevitable”, adding that Kakao Talk emoji purchases have dropped since Google introduced its new billing policy in June this year.

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“From a user perspective, due to Google’s new in-app payment policy [digital goods] the price barrier has gone up,” Namkoong said. As a result, if you look at [KakoTalk’s] Smiley Plus [subscription] service, the number of new users is down to one-third of what we saw in a year.”

Cocoa plans to work on countermeasures to respond to the change, Namkoong said. “We plan to launch a promotion for users using Google App Payments as well as our subscribers to ensure we minimize the impact of in-app payments in the second half of the year,” he said.

This June, the American tech giant made changes to its in-app payments system to charge for transactions flowing from non-gaming apps and other types of digital goods, including OTT, music streaming, web cartoons, digital books. applications and more. Prior to the change, non-gaming apps were allowed to direct consumers to external payment sources through in-app links.

Google said earlier this year in blog publish that “all developers selling digital goods and services in their apps must use the Google Play payment system” and clarify that apps using external payment links will be removed from the Google Play Store starting in June to comply with the new payment system. Google system.

Kakao has two businesses: platform (Kakao Talk, Kakao Mobility, Kakao Pay) and content (Kakao games, Kakao Webtoons and Melon music streaming). The South Korean internet company reported second-quarter revenue of $1.3 billion (1.82 trillion won), up 34.8% from the same period a year earlier, with net profit for the quarter of 77.3 million dollars (101.2 billion won), down 68%. a year earlier.


Credit: techcrunch.com /

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