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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Google boosts Chrome App store: Angry Birds; Developers keep 95 percent of revenue

By | May 11, 2011, 10:07am PDT

Google is stepping on the gas with its Chrome Web Store with the launch of Angry Birds, a 95 percent revenue split with developers and a global rollout in 41 countries to reach 160 million users.

With the move, Google’s Chrome browser strategy comes into more focus. Chrome is about generating search “lock-in” but usage too. The browser is becoming an app and Google is letting developers 95 percent of revenue to ensure the Chrome Web Store is dominant.

Apple’s traditional split is 70 percent—and most similar efforts have followed that model. Google appears to be starting a price war for developer attention.

As a result the Chrome Web Store,  highlighted at the Google I/O conference Wednesday, is likely to get a lot more love. In addition, Angry Birds will be cached for offline usage. Google said its Web Store users have 2 times the interaction and 2.5 times transaction volume.

Google execs also demonstrated 3D applications and performance enhancements in the Chrome browser.

Add it up and Google is dangling multiple carrots—notably 95 percent of revenue—to generate more apps in its Web store.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Google boosts Chrome App store: Angry Birds; Developers keep 95 percent of revenue
Viper589 17th May 2011
@kirkaiya@...

Actually the older core 2 duo Mac book can hit up to 200 percent CPU usage according to the activity monitor.
app store. Developers deserve the money.
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Maybe they could set the trend
Michael Alan Goff 11th May 2011
And entice developers to the Android Store with the same deal?
to and should not make money on third party applications!! 5% is plenty to cover expenses.
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Agreed
Michael Alan Goff 11th May 2011
Perhaps this would help give incentive to make Honeycomb apps as well. As soon as I get my EE money, I'm getting a Xoom.

It'd be nice to have a lot of apps.

Also, this would help them compete with Apple's own app offerings (and maybe deflate their revenue a bit).

All in all, Google should do what Google does best. Make money on their search while being able to screw everyone with good, cheap, products.
@DonnieBoy Why not? Does Wallmart not make money selling third part stuff? ( not limited to wallmart of course, any retail chain )
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True but...
Nihon8888 11th May 2011
@Chameleon81 Walmart's primary business is retail. They need to mark up goods sold. Google is not in the retail business and has other revenue streams.
@DonnieBoy
Until Google decides they are losing money from hosting.
enterprises so that they can use it to distribute private enterprise applications. Of course a lot of security features would be needed.
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What, Copy MS?
John Zern 11th May 2011
@DonnieBoy
Why would they want to do that?
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Mainly...
Alan Burns 11th May 2011
@John Zern

Because it's a gigantic market. Google clearly has the infrastructure in place (they could easily integrate a "self hosted cloud" version of this model on their Search Appliance products), and this could generate a lot of revenue, and give Microsoft a bit of a kicking in the enterprise segment to help keep them sharp.
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Google & Chrome App Store
Mathman47 11th May 2011
So the plot thickens. Will Google Chrome replace IE & Firefox? Hope this will lead to better laptop & desktop apps. Some of what I have on my iPod Touch I'd like to have on the PC too. Add a dongle to my Netbook & I have the iPad with a keyboard, but with MS Office & so many other features, at less than 1/2 the price. Come on developers, there is money to be made at Google. Code away.
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Performance issue
jyu 11th May 2011
I just tried Angry Bird in Chrome. CPU usage skyrocketed to 175%. Immature product?
@jyu

Really I have a core i7-980x over clocked to 4.3 Ghz and I only had 3% usage...
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175%!
rrusson_z 12th May 2011
@jyu: 175% usage? Wow. That's must be some sick overclocking on a really old system.
@jyu hey troll! Your CPU can't exceed 100% of its _actual_ max capability, for reasons that any high-school graduate could probably tell you...
@kirkaiya@...

Actually the older core 2 duo Mac book can hit up to 200 percent CPU usage according to the activity monitor.
Let's do the math. 95% of nothing is... let's see...
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Nothing? I beg your pardon!
Kenny Strawn Updated - 11th May 2011
@Andre Richards

Just so you know, *NOT* all Chrome OS apps are Web-based, and *NOT* all Chrome OS apps are required to be free! Take a look:

http://code.google.com/chrome/extensions/apps.html

Just so you know, apps like this already exist. Here are a few of them:

https://chrome.google.com/webstore/detail/ngmmpodmhlhciagihcjpdggoihakcahf

https://chrome.google.com/webstore/detail/iieeldjdihkpoapgipfkeoddjckopgjg

https://chrome.google.com/webstore/detail/chkhjlbdflppmaddpjmjecgdagdljimc

https://chrome.google.com/webstore/detail/jcbncbadgbbcfnlfmhjbndifohmeckib

https://chrome.google.com/webstore/detail/lcepmlnclefgmkanlgeimmcnkfedhgdp

https://chrome.google.com/webstore/detail/liglcienpnkhdajdfmnpbgmpjglonipe

And that's just a handful of them. All these apps can run offline, and they all can run without an Internet connection, plus a few more (now with HTML5). Which goes to show that assuming Chrome OS can only run when connected to the Internet borders on prejudice.
@Andre Richards and for apps that run when not crashing, are bugged or stealing your data, eating battery life in an OS half baked, enjoy!
Let's do the math. 95% of nothing is... let's see...

@Andre Richards

Is nothing, because Angry Birds on there is free.
@Info4Sherlock

Depend on your definition of "free." My personal info and data is valuable to me, so I don't see it that way. However, if you see no value in your personal data, by all means, enjoy your "free" stuff.

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