Giving It All to Overseas Players... Domestic Music Platforms' 'Cross-Industry Collaboration' Strategy

[Asia Economy Reporter Kang Nahum] Domestic music platforms are increasingly partnering with manufacturers and distributors to collaborate on content. This move aims to secure new customers in response to overseas music platforms such as YouTube Music and Spotify, which have officially entered the domestic market.

According to industry sources on the 24th, KT's subsidiary Genie Music has partnered with Megabox to offer customers who book tickets for the musical film "In the Heights" a "Genie Music Listening 100-Times Pass" valid for 14 days.

This is to allow moviegoers at Megabox to enjoy the film's OST on the AI music platform Genie. Along with the trailer, messages encouraging OST listening on Genie will be displayed on digital advertising channels at 49 Megabox locations. This promotion will run until the 14th of next month.

Genie Music also signed a memorandum of understanding (MOU) for online and offline integrated marketing with Shinsegae Department Store on the 8th. The goal is to maximize the strengths of the mobile platform, promote digital content production, and enhance customer benefits to create synergy between music and shopping.

Melon Company, the leading domestic music platform, is also actively collaborating with major domestic corporations. Melon Company recently decided to integrate its music platform Melon into the infotainment system of Kia’s flagship sedan "The New K9," scheduled for release this month. Users can easily access various Melon menus such as "Music Search" and "My Playlist" by simply touching the system screen. From the 1st of next month until the end of the year, a promotion will be held offering a two-month streaming trial pass to customers who purchase "The New K9."

In April, Melon Company also began platform integration with NCSoft’s K-pop entertainment platform "Universe." After logging into Universe and registering their Kakao account linked to Melon, users’ Melon subscription status and artist content usage history are transmitted to Universe. Streaming and download counts are used to record fandom activities on each planet and participate in Universe missions.

The aggressive marketing by domestic music platforms is interpreted as a response to the domestic market penetration by overseas music platforms. According to Mobile Index, the number of YouTube Music users increased to 2.98 million as of April, ranking second after Melon (5.31 million). This represents nearly a fivefold growth compared to 600,000 users in April of the previous year.

The world’s largest music streaming company, Spotify, is also showing clear growth in South Korea. Last month, Spotify’s total usage time was 210,000 hours, nearly recovering to the February level (230,000 hours) when interest surged immediately after its domestic launch. New installations last month were 100,000, lower than February’s 200,000 when many first-time users joined, but showing an increasing trend compared to 50,000 in March and 80,000 in April.

An industry insider said, "Due to the rapid growth of overseas platforms like YouTube Music and Spotify, domestic platforms are feeling heightened pressure," adding, "They are seeking new breakthroughs through collaboration with other industries."

This content was produced with the assistance of AI translation services.