Apple and Airtel Forge Strategic Partnership in India
In a significant move to expand its footprint in India’s competitive streaming market, Apple has partnered with telecom giant Airtel to offer exclusive deals for its music and TV services. The collaboration, announced on August 27, 2024, will bundle Apple TV+ and Apple Music with Airtel’s premium broadband and postpaid plans, while phasing out Airtel’s in-house Wynk Music app.
Key Highlights of the Deal
- Apple TV+ Inclusion: Airtel’s premium subscribers will gain access to Apple TV+ as part of their plans.
- Exclusive Offers: Paying Wynk Music subscribers will receive special incentives for Apple services.
- Transition Timeline: The changes are expected to roll out later in 2024.
Pricing and Market Strategy
Apple’s services are priced competitively in India, with Apple TV+ and Apple Music costing just 99 INR ($1.2) per month—a fraction of their U.S. prices (\(10 and \)11, respectively). This partnership could further reduce Apple’s average revenue per user (ARPU) in India but aligns with its goal to penetrate a market dominated by Android devices (over 90% share). Notably, both Apple Music and Apple TV+ are available on Android, broadening their potential reach.
Executive Insights
Oliver Schusser, Apple’s VP of Apple Music and TV+, emphasized the appeal of Apple’s content library:
“We’re thrilled Airtel customers in India will soon enjoy our world-class films, shows, and music. Our ever-growing catalog ensures something for everyone.”
Wynk Music’s Surprising Shutdown
Airtel’s decision to sunset Wynk Music—which held a 5-8% share of music app downloads in recent years—comes despite modest growth. Analysts note Wynk maintained a 20% market share in Asia Pacific downloads, suggesting the move is more strategic than reactive.
Industry Context
- Global Competition: Indian music platforms face stiff rivalry from Spotify and Apple Music, which offer subscriptions as low as $1.2/month.
- Market Consolidation: Times Internet recently sold its Gaana streaming service for under $30,000 after raising $200M+—a sign of sector challenges.
- Telecom Bundling Trends: Airtel and rival Jio are aggressively bundling streaming, education, and health services to attract high-value users.
What’s Next?
This partnership underscores Apple’s commitment to India’s booming digital economy while reinforcing Airtel’s strategy to enhance subscriber value through premium content. As the battle for India’s streaming audience intensifies, collaborations like this could redefine market dynamics.
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