The US know-how big, working to spice up income globally from providers together with apps, funds and media, is ready to supply free music and video streaming to lots of Bharti Airtel’s 281 million prospects.
The deal is prone to vastly broaden the consumer base for Apple TV+ and Apple Music in a rustic the place Apple has lengthy emphasised the manufacturing aspect of enterprise to diversify its provide chain past China.
Apple builds lots of its iPhones in India but its handsets make up simply six % of the nation’s 690 million smartphones, versus round two % in 2019, Counterpoint Research information confirmed.
“The transfer speaks of Apple’s ambitions for India,” mentioned Nitesh Kripalani, former head of Amazon Prime Video in India. “The technique is a time-tested methodology to catapult presence in markets it considers essential.”
In the US, Apple has provided Apple Music free of charge by way of some Verizon cell information plans since 2019, and its Apple TV+ will characteristic in a Comcast streaming bundle from May.
In India, Apple Music will change into accessible to premium customers of Airtel’s Wynk music app, which can finally shut.
Postpaid Airtel contracts give about seven million subscribers entry to the ad-free model of Wynk however solely a small fraction use it, mentioned a telecom business supply who declined to be named because the figures are confidential.
Neither Apple nor Airtel responded to requests for remark outdoors of normal enterprise hours.
Music Battleground
Apple Music is extra tailor-made to the Indian market in contrast with the principally English Apple TV+ with content material together with Bollywood and regional-language songs, although its library is smaller than Spotify’s, mentioned Counterpoint co-founder Neil Shah.
Spotify has some 3 million paid customers in India, Gaana has 1.4 million, Wynk 500,000 and Apple Music 200,000, mentioned an Indian music business supply who declined to be recognized as they weren’t authorised to share estimates publicly.
Neither Spotify nor Gaana responded to requests for remark outdoors of normal enterprise hours.
Overall, solely round 7.5 million folks paid for audio streaming providers in India final 12 months out of about 185 million customers of ad-supported and ad-free apps, confirmed information from business group FICCI and consultants EY.
Airtel pays Apple a per-user charge “considerably” decrease than the month-to-month $1.20 (roughly Rs. 100) charged every for Apple TV+ and Apple Music in India, mentioned the telecom business supply.
In return, it’ll save tens of millions of rupees in licensing because it appears to close Wynk and use Apple Music to spice up income and enhance buyer loyalty, mentioned a second telecom supply
“Airtel realised its energy is distribution, not content material creation,” mentioned the supply on situation of anonymity as they weren’t authorised to debate the matter.
Video Streaming
Apple is a small participant in Indian video streaming, with Counterpoint estimating it has fewer than 1 million customers. Disney+ Hotstar is the market chief with 38 million customers, whereas estimates confirmed Netflix has round 10 million.
Hinting on the market’s potential, Netflix has repeatedly mentioned it targets 100 million customers, with out fixing a time-frame.
Apple TV+ is understood for authentic collection resembling “The Morning Show” and “Slow Horses” nonetheless rivals together with Netflix and Disney characteristic extra Hindi content material with Bollywood actors and even regional-language movies.
Disney and Reliance Industries’ JioCinema additionally stream cricket – India’s hottest sport – and the 2 corporations are merging their Indian media belongings to create the nation’s greatest leisure agency.
Airtel, which as telecoms supplier lags solely Reliance Jio by subscribers, plans to supply packages with a number of months’ free entry to Apple TV+, mentioned the second telecoms supply.
Though that can get Apple TV+ into extra properties, development may very well be hindered as its “providing remains to be not optimised domestically that a lot,” mentioned Counterpoint’s Shah.
© Thomson Reuters 2024
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)
