Spotify, which announced official service in Korea for the new year, is not speeding up securing K-pop music sources. I am concerned about the situation in which K-pop, which can be heard in the overseas version, cannot be enjoyed in the domestic version.
According to the music industry on the 29th, Spotify could not sign a domestic music distribution contract with most of the major music distribution companies in Korea as of December. Among the leading distributors dealing with K-pop, it is known that only one large entertainment agency signed a domestic contract with Spotify.
An official from the music industry said, “The large-scale agency that signed a domestic contract with Spotify has a high proportion of global artists, so both managements have taken the lead.” “The rest of the major distributors are still waiting.”
Many of the major domestic music distribution companies operate music streaming platforms that are rivals of Spotify. It is difficult to actively sign a contract with Spotify. Negotiations were sluggish.
An official of a music distribution company said, “One of the main business models of Spotify is ad-based free streaming,” and “Korean music distribution companies that operate flat-rate streaming platforms have a negative atmosphere for the spread of free services.”
Another industry insider also said, “As Spotify is preparing to enter Korea for a long time since 2019, a lot of agreements have been made on detailed conditions such as the distribution of copyright fees. However, the contact point for contracting over the Spotify business model and future competition I didn’t find it.”
The rise in K-pop ransom is also one of the reasons why negotiations are not easy. In Korea, Spotify is in a position where it cannot unconditionally assert its platform dominance. According to Spotify, after the company first introduced the K-pop hub playlist in 2014, the percentage of K-pop users listening has increased by more than 2000%.
An official from a music distribution company said, “Spotify is a complex relationship that is both a partner and a competitor to cooperate with,” and “it is highly likely that distribution companies will join by examining the market reaction after launching in Korea.” There is a possibility that Spotify will be a half-service at the beginning of its launch in Korea.
Given this situation, it is analyzed that Spotify’s recent official entry into Korea is also to prepare a turnaround in the negotiations.
(Via)
