News

Rovio breaks 70:30 revenue split rule on Android thanks to carrier billing deal with T-Mobile

Demonstrates biggest brand can get better deal

Rovio breaks 70:30 revenue split rule on Android thanks to carrier billing deal with T-Mobile
It's almost a year since Rovio lifted the lid on its carrier billing platform Bad Piggy Bank, yet few details have been revealed. 

Still, according to Julien Fourgeaud, who acts as 'bank manager' for the platform, it seems that Rovio is looking to use its power within the market to break the traditional 70:30 split. 

Change for extra change

"We don't agree on the concept of the 70-30 split," Fourgeaud told AllThingsD, adding such an approach "will not help drive the industry forward".

"It has so far, but it will have to change," he concluded.

Fourgeaud made his comments in reference to a recent partnership with T-Mobile in the US, which sees Android customers on the network able to add the cost of Angry Birds' Mighty Eagle $1 IAP to their phone bill.

The implication is Rovio is getting more than 70 percent of the revenue; something that would be surprising as carriers typically take around 60 percent of anything billed through their systems. 

Cut and thrust

Carrier billing is already well established within the Android and Nokia ecosystems, of course.

For example, Nokia revealed its own operator billing system for developers at Nokia World 2010, which guarantees them a 60:40 split - the argument being that carriers often take more. 

On Android, several companies have launched platforms – indeed, Bad Piggy Bank itself is powered by Fortumo, which added IAPs to its own operator billing SDK for Android in July.

The prospect of Rovio increasing developers' potential revenue share will likely prick plenty of ears of many studios, although only the biggest publishers are likely to have the muscle to enter such negotiations. 

[source: AllThingsD]

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.