Updated with details of Wynk’s content costs
July 3rd 2017: Wynk Limited, a company owned by telecom operator Bharti Airtel, which essentially procures/aggregates content and sells to “B2B and B2C customers”, reported a turnover of Rs 128.5 crores for the financial year ended 31st March, 2017 (FY17), and a profit of Rs 4.1 crores. This is a significant jump from Rs 49 crores reported by the company in FY16, up by around 2.62 times. Profit for the company increased to Rs 4.1 crores, up 2.56 times from Rs 1.6 crores in FY16.
Capital expenditure for Wynk Limited declined to Rs 11 crore in FY17, from Rs 16.2 crore in FY16. The company was incorporated towards the end of FY15, so no figures for FY15 were available. Note that Wynk doesn’t just have music: it also includes Movies and Gaming.
As per Wynk’s annual report, its content costs were Rs 84.1 crores for the year – around 65% of turnover and 74% of total expenses – up 167% from Rs 31.15 crores the last financial year – around 64% of turnover and 72% of total expenses then.
In its FY17 Annual Report, Airtel said that:
- Wynk Music now plays close to a billion songs per month.
- Average daily time spent on the app by users has grown by 25% over the previous year.
- Daily streams grew 200% over the last year.
- Wynk crossed 50 million app installs during the year.
Note that 45% of Wynk users are non Airtel customers, the company had said in March. It had said then that Bollywood music made up for 54% of overall songs plays, English music was 26% and Regional music was the rest.
From the FY16 Annual report:
- Wynk Music crossed 12 million downloads.
- Daily songs played are over 10 million.
- On an average users spend 5.25 hours every month on the app.
Note that the streaming app had crossed 25 million downloads back in July 2016.
From the FY15 Annual Report:
- 5 million+ app downloads registered on Wynk music in less than six months, with the 5 million mark being hit in February 2015. 100,000 app downloads were just in the first four days of its launch.
Competition in India
Competition in the music streaming space is fairly substantive in India: there’s Times Internet owned Gaana, and Tiger Global backed Saavn. Apart from this, Google launched Google Play Music in India a few months ago, while Apple Music has been around since 2015. It’s only a matter of time before Amazon Music Unlimited launches in India. Airtel’s competitor (and collaborator) Idea Cellular also has its own music and movies apps.
The Wynk Business is probably incidental to Airtel’s massive telecom business, but the pitch that appears to be coming from Airtel is that it allows the company to acquire and/or retain customers. Our take on telecom operators has always been that it’s about the network: telecom operators are pipe businesses, and they should focus on being the best pipe they can be, while content providers should focus on being the best content providers they can be.