On this a part of the weblog collection, we are going to analyse the music streaming market in South Korea, which has grown so quickly in recent times – primarily due to Ok-pop – and has introduced file revenues to home music streaming providers. Nevertheless, within the 2020s, worldwide opponents entered the market and have been in a position to achieve market share on the expense of South Korean streaming suppliers. The explanations for this might be additional analysed.
The Economics of Ok-pop – Half 2: The music streaming market in South Korea
Lately, competitors within the South Korean music streaming market has intensified. For years, native music streaming providers had divided the market amongst themselves. That modified on 22 Could 2018, when Google launched each, the subscription-based YouTube Premium service – providing ad-free movies – and the ad-supported YouTube Music streaming service in South Korea.[1]
YouTube was already highly regarded in South Korea at the moment, as evidenced by the rising income from ad-supported music video streaming, which had surged to US $59 million by 2021, whereas income from ad-supported audio streaming stagnated at round US $6 million between 2016 and 2021 (see fig. 1).
Determine 1: Income from ad-supported audio and video streaming in South Korea, 2016–2021
The sport-changer was that Google bundled its two providers and built-in YouTube Music into YouTube Premium. Because the Ok-pop aesthetic is extremely performative and centred on dance, efficiency and outfits, music movies have been of nice relevance to followers, which made the YouTube providing very engaging. Many customers who had beforehand used home paid music providers now switched to YouTube Music. While YouTube Music had simply 4.03 million month-to-month energetic customers (MAUs) in 2021, inserting it effectively behind the market chief MelOn with 6.89 million,[2] it had closed the hole on MelOn with 6.27 million MAUs, which had 6.61 million MAUs a yr later (see fig. 2). In 2022, the Korean suppliers Genie Music (3.32 million MAUs) and FLO (2.13 million MAUs) adopted within the rankings, forward of Spotify with 0.79 million MAUs. By 2025, the image had modified utterly. YouTube Music was clearly in first place with 10.12 million MAUs, adopted by MelOn with 6.23 million MAUs. Nevertheless, the rising star of the yr was Spotify, which shot as much as third place with a development soar of 168 per cent to 4.24 million MAUs. In distinction, consumer numbers for the Korean providers Genie Music (2.57 million MAUs) and FLO (1.76 million MAUs) declined in 2025 (see fig. 2).
Determine 2: The music streaming market in South Korea by market share, 2022–2025
Korean music streaming providers noticed Google’s bundling technique as unfair competitors and criticized the US web big for it. In 2024, they acquired help from the Korean Honest Commerce Fee (FTC), which launched the “Platform Competitors Promotion Act” to allow simpler motion towards monopolistic market practices and the abuse of a dominant market place. The brand new regulation was aimed not solely on the Korean tech giants Naver, Kakao and Coupang, however primarily focused main US web firms reminiscent of Google, Meta and Apple. The function of music streaming providers was additionally to be scrutinised extra carefully, as FTC Chairman Han Ki-jeong introduced in a speech earlier than the American Chamber of Commerce in Seoul.[3]
The FTC’s subsequent investigations revealed that Google had breached competitors guidelines by bundling YouTube Premium and YouTube Music. The FTC argued {that a} month-to-month subscription to YouTube Premium in Korea would price KRW 14,900 (US$10.78) and that customers must pay KRW 11,990 (US$8.67) per 30 days for the ad-supported streaming service YouTube Music, with out the choice to change to a premium-only plan. The FTC concluded that this distorted competitors and deprived different music streaming providers, as shoppers may then change on to YouTube Premium, and initiated authorized proceedings towards Google Korea.[4]
To keep away from the hefty penalties offered for within the regulation, Google Korea entered into negotiations with the FTC, which, after an extended and difficult battle, resulted in an final result passable to each side. Google agreed to launch YouTube Premium Lite, which might price KRW 8,500 for customers of Android units and KRW 10,900 for Apple units. Within the Lite model, adverts are faraway from most movies, although not from YouTube Shorts. Moreover, options reminiscent of offline downloads and background playback aren’t accessible.[5]
The FTC expressed satisfaction with this compromise, as shoppers with little curiosity in YouTube Music may now change to the Lite model and subscribe to different music streaming providers. In return, Google agreed to maintain the subscription value for YouTube Premium Lite unchanged for a minimum of one yr and, within the occasion of future value adjustments, to take care of the value distinction between the complete model of YouTube and the Lite providing. Moreover, Google dedicated to paying KRW 30 billion to the general public broadcaster Korean Broadcasting System (KBS) in order that it may well higher help the Korean music business and home artists.[6] It stays to be seen whether or not this compromise will enhance the scenario for Korean music streaming providers, and there has already been criticism from Korean YouTube opponents.[7] Nevertheless, after years of development, they’ve come beneath large financial strain from overseas opponents.
Endnotes
[1] Snapes, Laura and Mark Sweney. 2018. YouTube to launch new music streaming service. The Guardian, 17 Could. https://www.theguardian.com/music/2018/might/17/youtube-music-new-streaming-service-launch. Accessed 16 Dec 2025
[2] Lee, Gyu-lee. 2025. Will home music streaming providers regain market share after YouTube’s new subscription program? The Korea Instances, 23 Could. https://www.koreatimes.co.kr/enterprise/tech-science/20250523/will-korean-music-streaming-services-regain-market-share-after-youtubes-new-subscription-program. Accessed 16 Dec 2025
[3] Lee, Jae-lim. 2024. Antitrust watchdog mulling inclusion of music streaming websites beneath platform regulation. Korea Joong-Ang Day by day, 7 March. https://koreajoongangdaily.joins.com/information/2024-03-07/enterprise/business/Antitrust-watchdog-mulling-inclusion-of-music-streaming-sites-under-platform-regulation/1997097. Accessed 19 Dec 2025
[4] Lee, Jae-lim. 2024. FTC opens penalty overview towards Google for bundling subscriptions. Korea Joong-Ang Day by day, 8 July 2025. https://koreajoongangdaily.joins.com/information/2024-07-08/enterprise/business/FTC-opens-penalty-review-against-Google-for-bundling-subscriptions/2085507. Accessed 19 Dec 2025
[5] Lim, Jeong-won. 2025. Google to launch YouTube Premium Lite plan in Korea after FTC approval. Korea Joong-Ang Day by day, 27 November 2025. https://koreajoongangdaily.joins.com/information/2025-11-27/enterprise/business/Google-to-launch-YouTube-Premium-Lite-plan-in-Korea-after-FTC-approval/2464732. Accessed 19 Dec 2025
[6] Ibid.
[7] Lee, Gyu-lee. 2025. Will home music streaming providers regain market share after YouTube’s new subscription program? The Korea Instances, 23 Could. https://www.koreatimes.co.kr/enterprise/tech-science/20250523/will-korean-music-streaming-services-regain-market-share-after-youtubes-new-subscription-program. Accessed 19 Dec 2025