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Apple Music Subscription Prices Slashed in India

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Apple has cut the price of all Apple Music plans in India, in a move apparently aimed at fending off rival streaming services like Spotify and YouTube Music, both of which recently launched in the country within the last month.

apple-music-india-800x441.jpg

Apple Music is now being offered for Rs 99 ($1.43) a month, down from the earlier price of Rs 120 ($1.73).

Likewise, a student membership now costs Rs 49 instead of Rs 60, while a family plan has dropped from Rs 190 to Rs 149. Yearly subscriptions meanwhile cost Rs 999 rather than the earlier price of Rs 1,200.

The new price of an Apple Music membership undercuts both Spotify and YouTube Music, whose monthly premium plans start at Rs 119 and Rs 129, respectively.

India is seen as an untapped market for streaming music services, with a population of 1.3 billion people many of whom are only just becoming active internet users.

Home to a thriving and varied multi-lingual music scene, the country already has several local streaming services like JioSaavn and Gaana, but with the big international players making their debut in the country, competition appears to be hotting up.

(Via The Indian Express.)

Article Link: Apple Music Subscription Prices Slashed in India
 
Article Link
https://www.macrumors.com/2019/04/05/apple-music-prices-slashed-in-india/
I totally understand that the cost of living in India is much lower, along with earnings but I’ve never understood how a product or service can vary in price so much between countries (tax excepted.)

Are Apple making a profit at this price? If so, are Western European and American customers being ripped off?

If Apple are losing money at this price, are we essentially subsidising residents of poorer countries Apple Music subscriptions?

I make no judgements either way but I’m curious as to how it works.
 
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-Garry- said:
I totally understand that the cost of living in India is much lower, along with earnings but I’ve never understood how a product or service can vary in price so much between countries (tax excepted.)

Are Apple making a profit at this price? If so, are Western European and American customers being ripped off?

If Apple are losing money at this price, are we essentially subsidising residents of poorer countries Apple Music subscriptions?

I make no judgements either way but I’m curious as to how it works.
Click to expand...
It’s interesting because I thought loyalties are being paid based on the number of times a song is played but I guess Apple (and other streaming service providers) is paying a different amount based on country. It appears that both technology companies and labels have agreed that markets such as India’s are just too big even if they only make a few dollars out of each person.
 
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-Garry- said:
I totally understand that the cost of living in India is much lower, along with earnings but I’ve never understood how a product or service can vary in price so much between countries (tax excepted.)

Are Apple making a profit at this price? If so, are Western European and American customers being ripped off?

If Apple are losing money at this price, are we essentially subsidising residents of poorer countries Apple Music subscriptions?

I make no judgements either way but I’m curious as to how it works.
Click to expand...

I wonder if there is here more then meets the eye.. Don't forget, the recording labels would be charging diff royalties based on the country....

Building an iPhone for cheaper is not as simple as reducing royalty payments/levels...
 
-Garry- said:
I totally understand that the cost of living in India is much lower, along with earnings but I’ve never understood how a product or service can vary in price so much between countries (tax excepted.)

Are Apple making a profit at this price? If so, are Western European and American customers being ripped off?

If Apple are losing money at this price, are we essentially subsidising residents of poorer countries Apple Music subscriptions?

I make no judgements either way but I’m curious as to how it works.
Click to expand...

Music royalty and licensing costs also vary dramatically between countries. Although I can't quantify the differences, I suspect that is driving much of the absolute price differential.

Look at the costs for buying music via sites such as Megaboon.com which operate under non-US royalty agreements and have sold mp3s for significantly lower prices for years.

I'd suggest that if any organization is subsidizing music in developing countries, it is the music industry itself. That's not to say Apple isn't also doing so -- they are very much all about charging what people are willing to pay. Cost-of-goods-sold only comes into play in terms of whether they feel they'd make a profit at the price people are willing to pay.

Again, just speculation -- but music costs are generally a bunch lower outside the "west"
 
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KooL BeAnZ said:
Apple really wants that Asian Market!

But that price is incredible!
Click to expand...
They are aiming for the Indian market specifically not the whole Asian market.

they can’t win western market and rest of Asia as competition is very strong in both hardware and services section.Samsung and Huawei are winning /already won the hardware and likes of Spotify and Google,etc winning the software side.

But India is different,many f there STILL look at iPhones (and thus it’s services as status symbol and luxury).

Also Apple really wants to move iPhone assembly line from China to India to save production costs even further and maximise margins.this way they can also influence Indian market more.
 
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A lot of analysts think that Apple only gets 10-15% margin on Apple Music. In this case, I would hazard a guess that Apple is losing money, but their costs are also lower because many songs are not available in India.
 
-Garry- said:
I totally understand that the cost of living in India is much lower, along with earnings but I’ve never understood how a product or service can vary in price so much between countries (tax excepted.)

Are Apple making a profit at this price? If so, are Western European and American customers being ripped off?

If Apple are losing money at this price, are we essentially subsidising residents of poorer countries Apple Music subscriptions?

I make no judgements either way but I’m curious as to how it works.
Click to expand...
There are just alot of people in India man, Apple definitely makes profits
 
-Garry- said:
I totally understand that the cost of living in India is much lower, along with earnings but I’ve never understood how a product or service can vary in price so much between countries (tax excepted.)

Are Apple making a profit at this price? If so, are Western European and American customers being ripped off?

If Apple are losing money at this price, are we essentially subsidising residents of poorer countries Apple Music subscriptions?

I make no judgements either way but I’m curious as to how it works.
Click to expand...

2 main reasons come to mind:

- Avoid competitors claiming that market (could be a huge market in the future)
- Internet services have high fixed costs and low variable costs. Therefore charging prices people in India can afford is "free money".
 
I'm sorry, but am I living in a separate reality where the word "SLASHED" means something else?

"Apple Music is now being offered for Rs 99 ($1.43) a month, down from the earlier price of Rs 120 ($1.73)"

So from $1.73 down to $1.43 is classed as a price SLASH now is it?

If I went into ANY store, which had a sign saying "PRICES SLASHED" on the windows, if I'm honest, I'd expect more of a drop in price difference than that.
 
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KooL BeAnZ said:
Apple really wants that Asian Market!

But that price is incredible!
Click to expand...
Apple is trying to own Indian market. As iTunes Music Store, Apple Books and Movies are banned in China and nobody cares about Apple Music in China, Apple need huge Indian market.
 
pratikindia said:
Apple is trying to own Indian market. As iTunes Music Store, Apple Books and Movies are banned in China and nobody cares about Apple Music in China, Apple need huge Indian market.
Click to expand...

May I please make one comment on your above statement I feel is not correct in my honest option?

I do not believe, and I can't imagine anyone else would that Apple NEEDS the huge Indian music market.
If you said Apple WANTS the huge Indian market, then I would of course agree.

That would be like me, having $10,000,000 and saying I NEED another million. No I don't need it, but because I may be greedy, I could still WANT it.
 
-Garry- said:
I totally understand that the cost of living in India is much lower, along with earnings but I’ve never understood how a product or service can vary in price so much between countries (tax excepted.)

Are Apple making a profit at this price? If so, are Western European and American customers being ripped off?

If Apple are losing money at this price, are we essentially subsidising residents of poorer countries Apple Music subscriptions?

I make no judgements either way but I’m curious as to how it works.
Click to expand...

The local production costs are so low. Local music stores have low wages and low rents, just like the local record labels and local recording studios. Local artist have much lower cost of living as well so they don't mind selling an album for way less in India then the same album in the rest of the world. However non local artist and record labels have to lower the price to be able so sell to the local market. They used to offset some cost by pressing the records and CDs in India and running businesses by cheaper local subsidiarys of their record labels. But the artists made way less and some didn't bother to sell records in those markets.
 
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-Garry- said:
I totally understand that the cost of living in India is much lower, along with earnings but I’ve never understood how a product or service can vary in price so much between countries (tax excepted.)

Are Apple making a profit at this price? If so, are Western European and American customers being ripped off?

If Apple are losing money at this price, are we essentially subsidising residents of poorer countries Apple Music subscriptions?

I make no judgements either way but I’m curious as to how it works.
Click to expand...
The music selection available in india is likely very different than ours. It’s probably flooded with artists and labels who are willing to sell their music for much less.

Also they may be undercutting the profit margin significantly in order to attract more customers to their hardware. ¢30 less per month is nothing compared to the price of an iphone
 
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Average salary in the whole of India is about 200 USD per month, so about 7 dollars a day. They can't charge comparable prices to the US or else only the rich would bother.
 
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