Apple’s recent partnership with India’s second-largest telecom company, Bharti Airtel, marks a significant move to expand its footprint in the rapidly growing Indian content market. This collaboration is poised to enhance Apple’s reach in a country where it has traditionally focused more on manufacturing than on services. By offering free access to Apple Music and Apple TV+ to a large segment of Airtel’s 281 million customers, Apple aims to increase its market share in a region where it lags behind industry giants like Spotify and Disney.
The deal represents a strategic shift for Apple, which has been working to diversify its revenue streams globally by focusing on services, including apps, payments, and media. In India, a country with a burgeoning smartphone market, Apple’s iPhones account for only 6% of the 690 million smartphones in use, a modest increase from around 2% in 2019, according to Counterpoint Research. The partnership with Airtel, therefore, comes as a critical step in bolstering Apple’s presence in a market where its brand is well-known, but its content services have yet to gain significant traction.
"The move speaks of Apple's ambitions for India," said Nitesh Kripalani, former head of Amazon Prime Video in India. "The strategy is a time-tested method to catapult presence in markets it considers important." Indeed, this is not the first time Apple has leveraged partnerships with telecom operators to expand its services. In the U.S., for example, Apple has offered Apple Music for free through some Verizon mobile data plans since 2019, and Apple TV+ will soon be included in a Comcast streaming bundle.
In India, the partnership will see Apple Music integrated into Airtel’s Wynk music app, which will eventually be phased out. Currently, Airtel’s postpaid contracts provide around 7 million subscribers with access to Wynk’s ad-free version, though only a small percentage of these users take advantage of the service. This transition to Apple Music is expected to significantly increase Apple’s user base in India, where competition in the music streaming space is fierce.
Apple Music’s tailored offerings, which include Bollywood and regional-language songs, make it more relevant to the Indian market compared to Apple TV+, which primarily features English content. However, Apple Music’s library is still smaller than that of Spotify, which dominates the Indian market with approximately 3 million paid users. In contrast, Apple Music has around 200,000 paid users in India, according to an Indian music industry source.
The overall audio streaming market in India remains relatively untapped, with only about 7.5 million people paying for services out of roughly 185 million users of ad-supported and ad-free apps. This highlights the significant growth potential for Apple Music, particularly as it leverages Airtel’s vast distribution network.
Financially, Airtel will pay Apple a per-user fee lower than the $1.20 monthly charge for Apple TV+ and Apple Music in India. This arrangement benefits both parties: Airtel will save millions in licensing costs as it phases out Wynk, and Apple will gain access to a broader audience, potentially boosting its revenue and customer loyalty in the process. "Airtel realized its strength is distribution, not content creation," said a telecom industry source, emphasizing the mutually beneficial nature of the partnership.
While Apple Music stands to benefit from this collaboration, Apple’s position in the Indian video streaming market remains relatively weak. With fewer than 1 million users, Apple TV+ is a small player compared to market leader Disney+ Hotstar, which boasts 38 million users, and Netflix, with around 10 million. Netflix, recognizing the potential of the Indian market, has set an ambitious target of reaching 100 million users, though it has not specified a timeline.
Apple TV+ is known for its high-quality original series such as "The Morning Show" and "Slow Horses." However, it faces stiff competition from rivals like Netflix and Disney, which offer a more extensive selection of Hindi content featuring Bollywood actors, as well as regional-language films. Additionally, Disney and Reliance Industries' JioCinema stream cricket, India's most popular sport, further solidifying their dominance in the market.
Airtel’s plans to offer packages with several months of free access to Apple TV+ could help increase the streaming service’s penetration in India. However, challenges remain, as Apple TV+ is "still not optimized locally that much," according to Neil Shah, co-founder of Counterpoint Research. This suggests that while the partnership with Airtel is a step in the right direction, Apple may need to further tailor its offerings to the Indian market to achieve significant growth.
In conclusion, Apple’s partnership with Bharti Airtel is a bold move to strengthen its presence in India’s content market. By leveraging Airtel’s extensive user base, Apple aims to boost the reach of Apple Music and Apple TV+ in a region where it has struggled to gain a foothold. While the collaboration is expected to bring substantial benefits to both companies, Apple will need to continue refining its content strategy to compete effectively with established players in the Indian market.
(Source:www.livemint.com)
The deal represents a strategic shift for Apple, which has been working to diversify its revenue streams globally by focusing on services, including apps, payments, and media. In India, a country with a burgeoning smartphone market, Apple’s iPhones account for only 6% of the 690 million smartphones in use, a modest increase from around 2% in 2019, according to Counterpoint Research. The partnership with Airtel, therefore, comes as a critical step in bolstering Apple’s presence in a market where its brand is well-known, but its content services have yet to gain significant traction.
"The move speaks of Apple's ambitions for India," said Nitesh Kripalani, former head of Amazon Prime Video in India. "The strategy is a time-tested method to catapult presence in markets it considers important." Indeed, this is not the first time Apple has leveraged partnerships with telecom operators to expand its services. In the U.S., for example, Apple has offered Apple Music for free through some Verizon mobile data plans since 2019, and Apple TV+ will soon be included in a Comcast streaming bundle.
In India, the partnership will see Apple Music integrated into Airtel’s Wynk music app, which will eventually be phased out. Currently, Airtel’s postpaid contracts provide around 7 million subscribers with access to Wynk’s ad-free version, though only a small percentage of these users take advantage of the service. This transition to Apple Music is expected to significantly increase Apple’s user base in India, where competition in the music streaming space is fierce.
Apple Music’s tailored offerings, which include Bollywood and regional-language songs, make it more relevant to the Indian market compared to Apple TV+, which primarily features English content. However, Apple Music’s library is still smaller than that of Spotify, which dominates the Indian market with approximately 3 million paid users. In contrast, Apple Music has around 200,000 paid users in India, according to an Indian music industry source.
The overall audio streaming market in India remains relatively untapped, with only about 7.5 million people paying for services out of roughly 185 million users of ad-supported and ad-free apps. This highlights the significant growth potential for Apple Music, particularly as it leverages Airtel’s vast distribution network.
Financially, Airtel will pay Apple a per-user fee lower than the $1.20 monthly charge for Apple TV+ and Apple Music in India. This arrangement benefits both parties: Airtel will save millions in licensing costs as it phases out Wynk, and Apple will gain access to a broader audience, potentially boosting its revenue and customer loyalty in the process. "Airtel realized its strength is distribution, not content creation," said a telecom industry source, emphasizing the mutually beneficial nature of the partnership.
While Apple Music stands to benefit from this collaboration, Apple’s position in the Indian video streaming market remains relatively weak. With fewer than 1 million users, Apple TV+ is a small player compared to market leader Disney+ Hotstar, which boasts 38 million users, and Netflix, with around 10 million. Netflix, recognizing the potential of the Indian market, has set an ambitious target of reaching 100 million users, though it has not specified a timeline.
Apple TV+ is known for its high-quality original series such as "The Morning Show" and "Slow Horses." However, it faces stiff competition from rivals like Netflix and Disney, which offer a more extensive selection of Hindi content featuring Bollywood actors, as well as regional-language films. Additionally, Disney and Reliance Industries' JioCinema stream cricket, India's most popular sport, further solidifying their dominance in the market.
Airtel’s plans to offer packages with several months of free access to Apple TV+ could help increase the streaming service’s penetration in India. However, challenges remain, as Apple TV+ is "still not optimized locally that much," according to Neil Shah, co-founder of Counterpoint Research. This suggests that while the partnership with Airtel is a step in the right direction, Apple may need to further tailor its offerings to the Indian market to achieve significant growth.
In conclusion, Apple’s partnership with Bharti Airtel is a bold move to strengthen its presence in India’s content market. By leveraging Airtel’s extensive user base, Apple aims to boost the reach of Apple Music and Apple TV+ in a region where it has struggled to gain a foothold. While the collaboration is expected to bring substantial benefits to both companies, Apple will need to continue refining its content strategy to compete effectively with established players in the Indian market.
(Source:www.livemint.com)
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