If you haven't noticed over the past few years, subscription services are all the rage. That's because guaranteed recurring revenue is far better for a company's stability than peaks and valleys of individual product sales. Many companies in a variety of industries have begun implementing this business model, from Netflix's primary business to Microsoft's Xbox Game Pass. Google has a collection of subscription services, including YouTube Premium, the ad-free version of YouTube.
This week, word of a new subscription service from the company hit, later confirmed by Google. This new service, dubbed Google Play Pass, is an app subscription for Android which will give you "access (to) hundreds of premium apps and games." The service is priced at $4.99 per month, for those who have been included in the test group.
This service is almost certainly in direct response to the recently announced Apple Arcade, a service that will provide "over 100 groundbreaking new games." With Apple having a very similar service, Google needed to make this move. In addition to the competition, Android has consistently had an issue with revenue available for app developers. In every study conducted, Android owners are less likely or less willing to spend money on apps than iPhone owners are. It is one of the main reasons why paid apps, such as games, release on iPhone first so that they can generate revenue from Apple owners. The monthly revenue from Google Play Pass will be shared with publishers, based on the amount of time their app is used.
While Apple's service will launch this Fall, Google's service is just in testing, with no public market plan. It's always possible that any of the details of the service could change, including the pricing, app availability, etc. They could also abandon the plan entirely, though that is not likely.