Apple goes after Spotify and Disney by way of a landmark partnership

Apple is getting ready the stage for a landmark partnership with India’s second-largest telecom firm, Bharti Airtel. Apple has acquired some catching as much as do with opponents like Spotify and Walt Disney.

The Cupertino large goals to extend its international income from companies reminiscent of apps, funds, and media: the plan is to supply free music and video streaming to a lot of Bharti Airtel’s 281 million clients.

This deal is anticipated to considerably broaden the person base for Apple TV+ and Apple Music in India, a rustic the place Apple has traditionally targeted on manufacturing to diversify its provide chain past China, Reuters reviews. Whereas many iPhones are manufactured in India, Apple units solely account for six% of the nation’s 690 million smartphones, a rise from about 2% in 2019, in accordance with information from Counterpoint Analysis.

– Nitesh Kripalani, former head of Amazon Prime Video in India.

In the US, Apple has been providing Apple Music free of charge via some Verizon cell information plans since 2019, and its Apple TV+ will probably be included in a Comcast streaming bundle beginning in Might.

In India, Apple Music will probably be made out there to premium customers of Airtel’s Wynk music app, which is about to finally shut. Presently, Airtel’s postpaid contracts present round 7 million subscribers entry to the ad-free model of Wynk, however solely a small fraction of those customers truly use it, in accordance with a telecom trade supply who requested anonymity because of the confidentiality of the figures. Neither Apple nor Airtel supplied feedback outdoors of normal enterprise hours.

Apple Music, with its content material together with Bollywood and regional-language songs, is extra tailor-made to the Indian market in comparison with the predominantly English Apple TV+, though its library is smaller than Spotify’s, mentioned Neil Shah, co-founder of Counterpoint.

In India, Spotify has roughly 3 million paid customers, Gaana has 1.4 million, Wynk has 500,000, and Apple Music has 200,000, in accordance with an Indian music trade supply who wished to stay nameless as they weren’t approved to share these estimates publicly.

In complete, solely about 7.5 million folks paid for audio streaming companies in India final 12 months, out of roughly 185 million customers of each ad-supported and ad-free apps, in accordance with information from trade group FICCI and consultants EY.

Airtel pays Apple a per-user payment that’s “considerably” decrease than the month-to-month $1.20 charged for Apple TV+ and Apple Music in India, mentioned a telecom trade supply. In alternate, Airtel will save hundreds of thousands of rupees in licensing prices because it plans to close down Wynk and use Apple Music to spice up income and improve buyer loyalty, in accordance with a second telecom supply.

Apple is a minor participant within the Indian video streaming market, with fewer than 1 million customers, in accordance with Counterpoint estimates. Disney+ Hotstar leads the market with 38 million customers, whereas Netflix has round 10 million, in accordance with estimates. Indicating the market’s potential, Netflix has said it goals for 100 million customers in India, although it has not specified a time-frame.

Apple TV+ is thought for its unique sequence like “The Morning Present” and “Gradual Horses,” however opponents reminiscent of Netflix and Disney supply extra Hindi content material, together with Bollywood productions and regional-language movies.

Disney and Reliance Industries’ JioCinema additionally broadcast cricket, India’s hottest sport, and the 2 firms are merging their Indian media property to kind the nation’s largest leisure firm. Airtel, which is the second-largest telecom supplier when it comes to subscribers after Reliance Jio, plans to supply packages that embody a number of months of free entry to Apple TV+, in accordance with the second telecom supply.