In a significant development, Apple has entered into a collaboration with Airtel, enabling exclusive benefits on its music streaming platform for the subscribers of the leading Indian telecommunications provider. The announcement made on Tuesday also highlights that Airtel will integrate Apple TV+ into its offerings for premium customers in India, marking the closure of its Wynk Music app.
Subscribers of Airtel’s premium broadband and postpaid packages will now receive Apple TV+ as part of their service, as stated by the company on Tuesday. Airtel noted, “Existing Wynk subscribers will be privy to extra benefits.” These adjustments are expected to be implemented later in the current year.
With Apple setting the subscription cost at 99 Indian rupees ($1.2) per month for both Apple TV+ and Apple Music in India, the pricing is significantly lower than the $10 and $11 charged in the U.S., respectively. The collaboration with Airtel is anticipated to further reduce the revenue Apple earns from Apple Music and TV+ in India, the world’s second-largest internet market. However, this strategy appears to be Apple’s effort to deepen its footprint in India, a market dominated by Android, which powers over 90% of smartphones. Notably, both Apple Music and Apple TV+ support Android devices.
Oliver Schusser, Apple’s vice president of Apple Music, Apple TV+, Sports and Beats, expressed excitement about the partnership, stating, “We are excited for Airtel’s subscribers in India to experience the incredible content available on Apple TV+ and Apple Music. With our continuously expanding library of top-tier music, movies, and TV shows, we are confident there will be something for everyone to enjoy.”
A representative from Airtel also shared that employees of Wynk Music will be transitioned to different sectors within Airtel. Wynk Music is known for being among the complementary services offered to Airtel’s paid telecommunications subscribers, including a premium plan with additional features.
“Airtel subscribers will continue to have access to music streaming via Apple Music. Additionally, those subscribed to Wynk Premium will receive exclusive offers for Apple services,” the Airtel spokesperson detailed.
The choice to discontinue Wynk was unexpected, given that the app was not losing its audience, albeit experiencing a slowdown in growth. According to UBS, a brokerage firm, Wynk Music accounted for approximately 5% of all music app downloads in the quarter ending June 2018, a figure that rose to 8% in the corresponding quarter this year, indicating steady progress. In the Asia Pacific region, Wynk Music held a market share of about 20% in downloads, as per Deutsche Bank.
Despite this, music companies in India have faced challenges competing with global giants like Spotify and Apple Music, which offer their streaming services in the country for roughly $1.2 to $1.3 per month.
In a notable transaction, Times Internet offloaded its music streaming service Gaana, despite raising over $200 million, to a subsidiary for less than $30,000.
Aiming to attract premium customers in India, Airtel and its chief competitor Jio are enhancing their content and service bundles linked to telecom offerings. Both entities provide an array of packages that grant access to several streaming platforms, in addition to educational and health services.
Compiled by Techarena.au.
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