Apple has struck a deal with Airtel to provide the Indian telecom giant’s subscribers with exclusive offers for its music streaming service. The partnership, announced on Tuesday, will also see Airtel bundle Apple TV+ for its premium customers in India, while simultaneously shuttering its own Wynk Music app.
Airtel customers who have subscribed to Airtel’s premium broadband and postpaid services will get Apple TV+ service included in their plans, the Indian firm said Tuesday. “Paying Wynk subscribers will gain access to additional offers,” Airtel said. The new changes will go live later this year.
Apple charges 99 Indian rupees ($1.2) monthly for Apple TV+ and Apple Music in India, compared to $10 and $11 in the U.S., respectively. A tie-up with Airtel will likely further lower the average revenue the company collects for Apple Music and TV+ in the world’s second-largest internet market. But the move is likely Apple’s attempt to reach more users in India, a country where more than 90% smartphones run Android. Apple Music and Apple TV+ are available on Android.
“We are thrilled that Airtel customers in India will soon be able to enjoy all of the incredible content on Apple TV+ and Apple Music,” said Oliver Schusser, Apple’s vice president of Apple Music, Apple TV+, Sports and Beats, in a statement. “With our ever growing catalog of world‐class films, television shows and music to choose from we know there will be something for everyone.”
An Airtel spokesperson separately said in a statement that Wynk Music employees will be moved to other parts of the Airtel business. Wynk is part of Airtel’s bouquet of complimentary services to its paying telecom subscribers. The app also offered a premium plan with additional features.
“Airtel customers will still have access to music streaming services through Apple Music. Moreover, Wynk Premium subscribers will receive exclusive offers from Airtel for Apple services,” the spokesperson added.
Airtel’s decision to shut down Wynk comes as a surprise as the music player wasn’t necessarily losing popularity, though its growth had slowed. According to brokerage firm UBS, Wynk Music made up roughly 5% of all music app downloads in the quarter ending June 2018. This figure increased to 8% for the same quarter this year, suggesting modest growth rather than decline. In the Asia Pacific region, Wynk Music had about 20% market share with downloads, according to Deutsche Bank.
However, music companies in India have struggled against international competitors like Spotify and Apple Music over the last several years. These global platforms provide their streaming services in India for as little as $1.2 to $1.3 per month.
Times Internet sold its music streaming service Gaana, which had raised over $200 million, to a subsidiary firm for less than $30,000.
Airtel and its main competitor Jio are bulking up their content and service bundles tied to telecom plans, aiming to attract high-value customers in India. Both companies offer various packages that include access to multiple streaming platforms alongside education and health services.