Highlight
- Airtel going to shut Wynk Music
- Airtel partners with Apple to bring exclusive offers for its OTT video and music streaming services, Apple TV+, and Apple Music in India.
Airtel the second largest telecom company in India going to shut down its music streaming service Wynk Music according to the source. The Music service was launched back in 2014 and now it has more than more than 100millions active users.
Airtel and Apple Partnership in Music and OTT
The Indian telco company Airtel partners with Apple to bring exclusive offers for its OTT video and music streaming services, Apple TV+, and Apple Music in India.
Just after this announcement, the Airtel spokesperson confirmed that Wynk Music is going to shut down in India he said “We can confirm that we will sunset Wynk Music and all Wynk Music employees will be absorbed within the Airtel ecosystem,”
As part of the collaboration, Airtel users will gain access to Apple Music’s extensive library of songs, albums, and playlists. Moreover, existing Wynk Premium users will enjoy exclusive offers and benefits when they subscribe to Apple Music.
“Airtel users will have access to Apple Music. Additionally, Wynk Premium users will receive exclusive offers from Airtel for Apple Music” an Airtel spokesperson said in a statement to Moneycontrol.
Also Read: Airtel to deploy a 5G SA Network to support its FWA services
Why is Airtel going to shut down Wynk Music?
The questions arise as to why Airtel shut its music streaming services despite a large user base of more than 100 million. As per the source, Airtel decided to shut down its music streaming because there is less monetization for music streaming services in India Secondly the strategic partnership with Apple also led to the merger of its music streaming service with Apple a global player in the music streaming space.
Streaming Services Face Challenges in India’s
The EY-FICCI report highlights the difficulties faced by streaming services in acquiring paid subscribers in India. With numerous free options available on major platforms, YouTube’s extensive music library, and the widespread availability of FM radio, converting users to paid subscriptions proves to be a significant challenge.
Airtel, despite having a massive user base of approximately 185 million, only has 7.5 million paid subscribers, representing a mere 4% of its total user count according to the EY-FICCI report released in March 2024. This low conversion rate creates a significant obstacle for streaming services in generating revenue through subscriptions.
To mitigate these challenges, many streaming services rely heavily on advertising to monetize their platforms. However, ad revenue alone may not be sufficient to cover operational costs.
Also Read: JioTV+ app with over 800 digital TV channels for Reliance Jio users
Conclusion
In addition, Airtel’s previous attempt to acquire Gaana and merge it with its Wynk Music service did not materialize. The Times Group’s subsidiary, Entertainment Network India Limited (ENIL), ultimately acquired Gaana in December 2023 for Rs 25 lakh.
