Apple Partners with Airtel to Expand Reach in India's Streaming Market
Apple has joined forces with Indian telecom giant Airtel to provide special offers on its music streaming service and include Apple TV+ for premium customers. This strategic move coincides with Airtel's plan to discontinue its Wynk Music app later this year. As part of their plans, Airtel's premium broadband and postpaid subscribers will receive Apple TV+, while Wynk Music subscribers will enjoy additional offers.
In India, the monthly cost for Apple TV+ and Apple Music is 99 Indian rupees ($1.2), a significant reduction compared to the U.S. This collaboration aims to broaden Apple's presence in a market where more than 90% of smartphones operate on Android. Notably, Apple Music and Apple TV+ are already accessible on Android devices.
Expressing enthusiasm about Airtel customers accessing Apple's content, Oliver Schusser, Apple’s vice president of Apple Music, Apple TV+, Sports and Beats, welcomed the partnership. Airtel plans to reassign Wynk Music employees to other sectors of the business, while Wynk Premium subscribers will receive exclusive offers from Airtel for Apple services.
Despite Wynk Music experiencing modest growth, Airtel's decision to shut it down is surprising. Nonetheless, Indian music companies have encountered competition from global rivals like Spotify and Apple Music, which offer streaming services for as little as $1.2 to $1.3 per month.
Both Airtel and its leading competitor Jio are elevating their content and service bundles to attract high-value customers in India, presenting access to various streaming platforms and additional services such as education and health.
Key Takeaways
- Apple partners with Airtel to offer exclusive Apple Music deals in India.
- Airtel to bundle Apple TV+ with premium broadband and postpaid services.
- Airtel is shutting down Wynk Music, reallocating employees to other business areas.
- Apple TV+ and Apple Music priced at 99 Indian rupees monthly in India.
- Airtel aims to attract high-value customers with enhanced service bundles.
Analysis
Apple's collaboration with Airtel is geared towards targeting India's substantial Android user base, thereby bolstering Apple's market presence. Airtel stands to benefit from the shift from Wynk Music to bundled Apple services, enhancing customer retention and value. The closure of Wynk Music reflects competitive pressures from global streaming giants. Short-term gains encompass immediate subscriber growth for Apple and diversification of services for Airtel. In the long run, this collaboration could solidify Apple's position in India and strengthen Airtel's status as a premium service provider, potentially influencing local and international competitors like Spotify and Jio.
Did You Know?
- Apple TV+: A subscription-based streaming service from Apple, offering original content including TV shows, movies, and documentaries. It competes with platforms like Netflix, Amazon Prime Video, and Disney+ and is recognized for high-quality productions, aligning with Apple's broader strategy to diversify revenue streams beyond hardware sales.
- Wynk Music: Airtel's music streaming service in India, featuring a wide range of songs including Bollywood, regional, and international music. The decision to integrate Apple Music into Airtel's offerings signals a shift towards partnering with global players to enhance service quality and attract premium customers.
- Service Bundling: A marketing strategy where multiple services are combined into a single package, often offered at a lower combined price than if purchased separately. In the context of Airtel and Apple's partnership, bundling Apple TV+ with premium broadband and postpaid services aims to provide added value to customers, increasing retention and attracting high-value subscribers.