Choi Ki-young: "OTT Music Copyright Rates Show Irrational Aspects"
[Asia Economy Reporter Seulgi Na Cho] Choi Ki-young, Minister of Science and ICT, stated on the 17th regarding domestic online video service (OTT) companies such as Wavve, Watcha, and TVING filing administrative lawsuits with the Ministry of Culture, Sports and Tourism over music copyright royalty rates, "There are unreasonable parts in the (amendment), and we are discussing improvements with the Ministry of Culture, Sports and Tourism."
Minister Choi responded on the same day during the National Assembly Science, ICT, Broadcasting and Communications Committee (Science Committee) plenary session to a question from Park Dae-chul, a member of the People Power Party, asking whether the Ministry of Science and ICT had expressed opposition to the Ministry of Culture, Sports and Tourism’s 'Amendment to the Music Copyright Usage Fee Collection Regulations' that has caused controversy, saying, "From the Ministry of Science and ICT’s standpoint, the development of OTT is important."
Minister Choi explained, "We are currently consulting with the Ministry of Culture, Sports and Tourism to find parts that do not hinder the development of OTT." Regarding the evaluation of the current OTT music copyright royalty conflict as a confrontation between the Ministry of Science and ICT, the Korea Communications Commission, and the Ministry of Culture, Sports and Tourism, he mentioned, "There is a confrontation between the Korea Music Copyright Association and OTT, not between ministries."
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The OTT Music Copyright Countermeasure Council (OTT Music Council), which includes Wavve, TVING, and Watcha, filed a lawsuit on the 5th at the Seoul Administrative Court requesting the cancellation of the Ministry of Culture, Sports and Tourism’s approval of the amendment to the music copyright usage fee collection regulations. The amendment mainly raises the OTT music copyright royalty rate from 1.5% this year to 1.9995% by 2026. However, there is criticism that the standards are unclear, such as the royalty rate increasing several times depending on the platform even when watching the same terrestrial drama, and that the decision was made based on opinions from a committee structured to be significantly disadvantageous to OTT companies.
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