Coders to profit as Android Market opens

• Tags:
• Programmers,
• Iphone,
• Founder,
• App

Stephen Shankland CNET News

Published: 23 Oct 2008 08:21 BST

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Google officially opened its Android Market on Wednesday and promised that, beginning next year, programmers will get the lion's share of revenue from applications sold on the download site for the company's mobile-phone operating system.

The first incarnation of the Android Market has more than 50 applications available for download, but they are all free. Google said the site will be able to distribute paid applications early in the first quarter of 2009.

More applications are on the way, and programmers will be able to add their own starting from Monday, in a process that reflects a much more hands-off approach than Apple has taken with its App Store for iPhone software. Programmers need to pay a $25 (£15) registration fee.

"On Monday, to share your app with the world, simply register, upload your application and publish it. It's really that easy," said Eric Chu of the Android mobile-platform team on Google's Android developers blog on Wednesday.

The first Android-powered phone, the T-Mobile G1, built by HTC, is now on sale in the US. In addition, Google started promoting the G1 on its highly trafficked search page.

Like Apple, Goolge will give its programmers 70 percent of revenue, while RIM offers BlackBerry programmers 80 percent.

One difference the mobile-phone industry might well find appealing: Apple keeps the remaining revenue, but Google gives it to wireless service carriers, minus billing settlement fees. It is not yet clear exactly how RIM will divide the remaining revenue.

"Google does not take a percentage. We believe this revenue model creates a fair and positive experience for users, developers and carriers," Chu said.

Android phones have a built-in Android Market application. Those without a phone will be able to browse available applications at the Android Market site.

Wooing programmers
Google's considerable clout with developers could be key to helping Android rise from an open-source operating system used on only a tiny fraction of the world's mobile phones into a force to be reckoned with. The company has already given developers millions of dollars in prize money, and another Android programming contest is coming.

One person happy with Android is Buzzd chief technology officer and co-founder Deepen Shah, whose company supplied one of the initial Android Market applications: ad-supported software to find out what's going on at local bars, museums and other venues.

Shah said Google's software-development kit (SDK) is good, Android applications are easier to write than iPhone apps, and Google makes its programmers available.

"We have direct access to a lot of the developers who work with platform [at hackathons and other events]," Shah said. That means programmers can build relationships, unlike with Apple: "They threw the SDK out there in the hope developers would latch on to the Apple brand name."

Apple sold an impressive 6.9 million iPhones in the third quarter, showing strong demand for a high-powered internet-connected device with a rich set of applications. Programmers care deeply about releasing applications on a system that's actually in widespread use, and the iPhone currently has the most alluring combination of adoption and computing power.

Despite competing offerings, Apple and Google are allies in another way. Both are advancing a rebalancing of power that emphasises independent mobile-application download sites, bypassing mobile service operators' gatekeeping.

Democracy in action?
"Our vision is that there's not gatekeepers" and Google doesn't have an editorial function, said Rich Miner, manager of Google's mobile-platforms group. "There's no human looking at the apps to see what they're doing."

That approach has a lot of appeal for Buzzd chief executive and co-founder Nihal Mehta. The company submitted its iPhone application three months ago, but it has only now arrived on the App Store, he said.

"There's a long queue," Mehta said of Apple's App Store. "The Android process is a lot more democratic. They're basically telling anybody that you can go apply and your app will be in there."

Google wants the Android Market to be like YouTube, with a search function to let people find what they want and user ratings helping to bring the best to the forefront. Making the market wide open will "enable that long tail to happen", Miner said. In other words, there will be room not just for mainstream applications but also for niche products that may only appeal to a narrow segment of users.

User ratings aren't the only factor in how applications are ranked and presented at the Android Market. "Anonymous usage statistics" also are included, Chu added on the blog.

That's not to say there's no oversight at all. Applications that violate Google's terms of service — for example, by not warning users during installation time what services, such as GPS tracking, an application uses — can be removed from the Android Market and even from the phones themselves. Users will help flag software, in a greyer area.

"Apps that are harmful aren't going to be rated five stars. They'll quickly be bubbled to the bottom or be yanked off the platform," Miner said. "These things have helped the carriers feel more comfortable" with Google's self-managing system.

Screening applications can help protect users, but Miner said Android has strong security. For example, the file system "is write-locked so nobody can get access to it", and one application can't get access to another's data.

Credit: Coders get 70 percent of Android Market revenue from CNET News

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