MUMBAI: Airtel has announced its decision to shut down Wynk Music and integrate its users into new offerings through a strategic partnership with Apple Inc. The move reflects a significant shift in Airtel’s approach to digital services, leveraging Apple’s established global platforms to enhance its value proposition.

Here are the key details:

. Shutdown of Wynk Music: Wynk Music, launched in 2014, offered a variety of features including offline music downloads, caller tunes, podcasts, and streaming in multiple regional languages. Despite its range of features, Airtel is phasing out the service.

.  New Partnership with Apple: As part of the transition, Airtel has entered into a partnership with Apple, which will bring Apple Music and Apple TV+ to Airtel users in India. This strategic collaboration aims to offer exclusive benefits to Airtel customers.

. Offers for Wynk Premium Users: Current Wynk Premium subscribers will receive exclusive offers related to Apple Music as part of this transition. This is designed to provide added value and a smooth transition for existing users.

.  Strategic Advantages: The partnership with Apple is intended to enhance Airtel's OTT (Over-the-Top) video and music streaming services. By integrating Apple Music and Apple TV+ into Airtel's offerings, the company aims to offer high-quality content and competitive pricing to its customers.

This transition aligns with industry trends where telecom companies are increasingly partnering with established global content providers to boost their digital service portfolios and address the challenges of monetizing their own streaming platforms.

The 2023 music streaming landscape in India highlighted a significant disparity between active users and paying subscribers. According to the EY-FICCI report released in March 2024, while there were approximately 185 million active users of music streaming apps, only about 7.5 million of these were paying subscribers—just 4 percent of the total user base. This low conversion rate to paid subscriptions is attributed to the availability of numerous free options, including music on YouTube and FM radio, which are widely accessible through cars and mobile phones.

This challenging environment underscores concerns about the profitability of music streaming platforms. The report suggests that the low revenue from subscriptions could lead to consolidation or even shutdowns of some platforms as they struggle to achieve sustainable financial performance.

In light of these market conditions, Bharti Airtel's decision to shut down its Wynk Music service reflects broader industry trends. Previously, Airtel explored options to merge Wynk Music with other major players like Times Internet and Gaana, but these discussions did not come to fruition. Gaana was acquired by Times Group's subsidiary, Entertainment Network India Limited (ENIL), in December 2023 for Rs 25 lakh.

Airtel’s strategy now involves partnering with Apple to leverage established global players like Apple Music, which could provide a more stable and lucrative proposition compared to continuing with Wynk Music in a challenging market.