“Vi will offer a six-month premium subscription at no additional cost to all of its postpaid and prepaid customers,” the third-largest telephone company and Hungama Music said in a joint statement on Monday.
Previously, Vi had partnered with Hungama for premium video on demand. The latest alliance will help telecom operators compete with rivals Reliance Jio Infocomm (Jio) and Bharti Airtel in its content offerings, and music is one of the biggest content wholesalers.
Jio and Airtel have JioSaavn and Wynk apps respectively. Gaana, Spotify and Youtube Music are other leading music platforms in the market.
For the telecommunications company, obtaining customers is crucial to improving its average revenue per user (ARPU), a key industry parameter.
The phone company, which lost 18.8 million users last year alone, ended the September quarter with 253 million users. The loss-making phone company is desperate to stop and then reverse the trend of lost subscribers. It numbered 408 million at the time of the merger between Vodafone India and Idea Cellular in August 2018.
At the end of the September quarter, his ARPU was Rs 109, while Airtel and Jio’s were Rs 153 and Rs 143.6 respectively.