By Kim Tae-gyu
Apple Music got off to a bad start in Korea after the music-streaming service started service here on Aug. 5, which is ominous news for the global tech giant.
WiseApp, a domestic consultancy, said Wednesday that the number of Apple Music users last week amounted to about 60,000, or 0.24 percent of the Korean customer base of 24.6 million.
Local players dominated the market as MelOn topped the podium with 2.91 million followed by Genie with 960,000 and Naver Music with 660,000. Apple ranked ninth.
This compares to its global success on the strength of exclusive content and unique ad campaigns ― following its official June 2015 launch, the on-demand service attracted more than 15 million subscribers across the world in a year.
Steve Jobs, the late Apple founder, was known to dislike subscription-based music offerings, but after his death the U.S. company pursued such offerings.
That was also the case for some features of the iPhone. Apple came up with a stylus, which Steve Jobs outspokenly hated, and sold large-screen phones like the 4.7 inch and 5.5 inch iPhone, which were repeatedly mocked by the former CEO ― he believed that smartphones should match the ergonomics of people’s hands.
“Thanks to its global reputation, many expected Apple Music to make a dent in the local market as the iPhone did,” said a Seoul-based analyst.
“But thus far, the service has failed to make its presence felt probably due to a lack of music content in a market ruled by a handful of homegrown players. Let’s see whether Apple Music would be able to harness the late-mover advantage by securing proper content in a battle with established competitors.”
Apple chalked up a sensational success after it brought the iPhone here in 1999, years after its global debut. But its growth trailed off while its after-sales services generated consumer complaints.
In particular, its refurbished phone policy raised the ire of iPhone users, which prompted lawmakers to raise the issue during last year’s Assembly session.
The late-mover advantage typically takes place when latecomers learn from pioneers’ mistakes in deciding the time to enter the market and judging consumer tastes.
Unlike the conventional wisdom that only innovation-powered first survivors will take the lion’s share, the most successful global brands including Google and Gillette were not first on the scene in their respective businesses.
Koreans can enjoy a three-month free trial of Apple Music. After that they will have the option to pay $7.99 a month for an individual plan or $11.99 for a family plan of up to six members.
Apple Korea refused to comment.