SUMMARY
- Bharti Airtel is set to close its streaming music service, Wynk Music, integrating all its staff into the Airtel network.
- The announcement comes following Bharti Airtel’s collaboration with Apple Inc to offer exclusive deals on Apple TV+ and Apple Music for the Indian audience.
- Wynk Music contributes around Rs 250 to Rs 300 crore in annual revenue for the telecom major.
Bharti Airtel is set to close its streaming music service, Wynk Music, after a decade since its inception, integrating all its staff into the Airtel network.
A spokesperson told Moneycontrol about the confirmation of the decision to shut down Wynk Music and absorb its employees into the Airtel ecosystem, following Bharti Airtel’s collaboration with Apple Inc to offer exclusive deals on OTT video and music streaming services, including Apple TV+ and Apple Music for the Indian audience.
The spokesperson said, “Airtel users will have access to Apple Music. Additionally, Wynk Premium users will receive exclusive offers from Airtel for Apple Music.”
On August 27, Airtel announced its strategic alliance with Apple to introduce exclusive offers for its OTT video and music streaming services, Apple TV+ and Apple Music, in India. This partnership will enable Airtel Xstream subscribers to enjoy content from Apple TV+ with premium Airtel WiFi and Postpaid plans, enhancing the Airtel Xstream fiber service. The services will be made available later this year.
The spokesperson mentioned that this partnership not only benefits Airtel but also aids Apple in attracting high-quality subscribers through this strategic collaboration. Airtel will provide Apple Music subscriptions at a more advantageous and discounted rate compared to Apple’s standard pricing, making these plans exclusive to Airtel customers and not available through any other telecom provider.
As per sources, the decision to shut down Wynk’s service was due to the apparent lack of any monetisation plan for the platform. “In India, music streaming monetization is already low. Secondly, Airtel wanted to offer a better service in the music streaming space. Apple is an established player in the global music streaming space.”
Additionally, Airtel and Apple are in the process of establishing a carrier billing agreement as a component of their partnership, aimed at enabling Apple to monetize its OTT and music streaming services.
Launched in 2014, Wynk Music provided users with the ability to download music for offline listening, customize ringtones, listen to podcasts, and stream music in various regional languages, among other functions.
As part of Airtel’s digital services division, Wynk Music contributes around Rs 250 to Rs 300 crore in annual revenue for the telecom major.
In 2023, the music streaming market saw approximately 185 million active users, yet only about 7.5 million of these paid for subscriptions, representing just 4%, as highlighted in an EY-FICCI report released in March 2024.
This report suggests that converting users to paid subscribers could be a challenge due to the free options available on major streaming platforms, the availability of music on YouTube, and FM radio in vehicles and mobile phones. This situation raises concerns regarding the profitability of audio streaming services, potentially leading to consolidation or the closure of platforms in the future.
Bharti Airtel had previously explored the possibility of acquiring and merging Wynk with Times Internet and Tencent-backed Gaana, but these discussions did not lead to a successful agreement. Subsequently, Gaana was purchased by Times Group’s subsidiary Entertainment Network India Limited (ENIL) in December 2023 for Rs 25 lakh.
