Apple Partners with Airtel to Boost Music and TV Streaming in India Amidst Growing Competition

Apple is set to enhance its presence in India’s competitive streaming market through a new partnership with Bharti Airtel, the country’s second-largest telecom provider. This strategic move aims to expand the reach of Apple Music and Apple TV+ to Airtel’s vast customer base, potentially reshaping the streaming landscape in India.

The collaboration will provide many of Airtel’s 281 million subscribers with free access to Apple’s music and video streaming services. This initiative comes as Apple seeks to strengthen its foothold in a market where it currently lags behind rivals like Spotify and Walt Disney.

Historically, Apple has focused more on manufacturing in India, diversifying its supply chain beyond China. Although Apple builds a significant number of its iPhones in India, its market share in the country’s smartphone sector remains modest, holding just 6% of the 690 million smartphones, a slight increase from 2% in 2019, according to Counterpoint Research.

Nitesh Kripalani, former head of Amazon Prime Video in India, highlighted that this move aligns with Apple’s broader strategy to establish a stronger presence in key markets. “The strategy is a time-tested method to catapult presence in markets it considers important,” Kripalani said.

In the U.S., Apple has offered similar free streaming deals through partnerships with Verizon and Comcast. In India, Apple Music will be integrated into Airtel’s Wynk music app, which is set to be phased out. Postpaid Airtel customers, around 7 million of whom currently access Wynk’s ad-free version, will transition to Apple Music.

Despite its efforts, Apple Music’s market presence in India is still limited compared to Spotify, which has around 3 million paid users in the country. Apple Music trails with approximately 200,000 users, according to industry estimates. The broader Indian market for audio streaming services includes around 185 million users, with only 7.5 million paying for these services.

Apple is also a minor player in the Indian video streaming arena, with fewer than 1 million users for Apple TV+. In contrast, Disney+ Hotstar dominates with 38 million users, and Netflix holds around 10 million. Apple TV+ faces challenges in gaining traction due to its relatively smaller library of Hindi and regional content compared to its competitors.

Airtel’s deal with Apple will involve paying a per-user fee significantly lower than the standard $1.20 monthly charge for Apple TV+ and Apple Music in India. This arrangement will allow Airtel to phase out Wynk, leverage Apple’s offerings to boost customer loyalty, and save on licensing costs.

As part of the deal, Airtel plans to bundle several months of free access to Apple TV+ with its packages, expanding the service’s reach into more homes. However, Apple TV+ might face hurdles in growing its user base due to its less optimized local content compared to its rivals, according to Counterpoint’s Neil Shah.

This partnership signifies Apple’s push to capitalize on the vast potential of the Indian market while navigating an increasingly competitive streaming landscape.