Apple recently announced a partnership with Airtel, an Indian telecom giant, to offer exclusive deals to Airtel’s subscribers for its music streaming service. This collaboration also includes the integration of Apple TV+ for premium customers in India, leading to the discontinuation of Airtel’s Wynk Music app. This shift aims to provide more value to Airtel customers and increase the accessibility of Apple’s services in the Indian market.
One key aspect of this partnership is the pricing strategy adopted by Apple for its services in India. The monthly charge of 99 Indian rupees for Apple TV+ and Apple Music significantly undercuts the prices in the United States, where the services are priced at $10 and $11, respectively. This pricing strategy is likely to result in a decrease in the average revenue generated by Apple in the Indian market. However, it is a calculated risk to expand their user base in a market dominated by Android devices, where over 90% of smartphones run on the Android operating system.
The decision to shut down Wynk Music comes as a surprise, considering its modest growth in popularity. Despite representing a small percentage of music app downloads in previous quarters, the app showed some growth in market share. Airtel’s move to discontinue Wynk Music and shift its employees to other areas of the business indicates a shift in strategy to focus on providing exclusive offers for Apple services to its subscribers.
The music streaming industry in India has seen intense competition from global players like Spotify and Apple Music. These platforms offer their services at incredibly low prices, ranging from $1.2 to $1.3 per month. This competitive pricing has posed a challenge to local services, forcing companies like Times Internet to sell off their music streaming platforms at a significantly lower valuation than their initial investment. Airtel and its main competitor, Jio, are responding to this competition by enhancing their content and service bundles to attract high-value customers.
The partnership between Apple and Airtel signifies a shifting landscape in the Indian telecom and music streaming industry. By offering exclusive deals and integrating Apple services into Airtel’s plans, both companies aim to capture a larger share of the market and retain high-value customers. This strategic move will not only impact the revenue streams of both companies but also shape the competitive dynamics within the Indian market.
While the partnership between Apple and Airtel presents exciting opportunities for subscribers and the companies involved, the decision to discontinue Wynk Music raises questions about the future of locally developed music apps in India. The competitive pricing strategies adopted by global players like Apple and Spotify have set a new benchmark in the industry, challenging local services to innovate and adapt to changing market dynamics. As the Indian market continues to evolve, partnerships and strategic decisions will play a crucial role in shaping the future of the telecom and music streaming industry in the country.