Kakao says emoji subscription purchases fell by a 3rd as a consequence of Google’s new in-app coverage – TechCrunch

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 mentioned 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 mentioned that the detrimental affect of Google’s new billing coverage is “inevitable,” including that the variety of Kakao speak 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] worth hurdle has gone up,” Namkoong mentioned. “Because of this, when you take a look at [KakoTalk’s] Emoticon Plus [subscription] service, the variety of new customers has gone right down to one-third of what we had seen over the yr.”

Kakao plans to work on countermeasures to answer the change, Namkoong mentioned. “We’re planning on working a promotion for customers, utilizing Google’s in-app fee, and in addition for our subscribers so as to make sure that we reduce the affect from the in-app fee within the second half of the yr,” he mentioned.

The U.S. tech big enforced adjustments to its in-app fee system in June this yr to cost transactions overflowing from non-game apps and different forms of digital items together with over-the-top (OTT), music streaming, net cartoons, digital ebook apps and extra. The non-games apps, previous to the change, have been permitted to direct shoppers to exterior fee sources by in-app hyperlinks.

Google mentioned earlier this yr in weblog submit that “all builders promoting digital items and companies of their apps are required to make use of Google Play’s billing system,” and clarified that apps utilizing exterior fee hyperlinks will likely 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 Speak, 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 internet revenue of $77.3 million (101.2 billion WON) for the quarter, down 68% from a yr earlier.

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