KT introduces new pricing system for music streaming

Models promote KT Music’s new curation service, “Genie Life,” and a new per-streaming pricing system during a press conference at the company’s office near Gwanghwamun, central Seoul, Wednesday. / Courtesy of KT Music

By Yoon Sung-won

KT Music, the music content-providing affiliate of KT, has launched a new pricing system for its “Genie” service that charges per streaming.

KT Music said the plan will charge 10 won, compared with 12 won for existing streaming services, every time a user streams a song for more than 60 seconds. A basic charge of 100 won will be added every month, the company said.

“The new pricing system will help customers consume music content at reasonable prices and save expense,” KT Music Chief Executive Kim Sung-ook said at a press conference in central Seoul, Wednesday.

“We believe we can expand the entire music streaming service market as we target those who have not used a paid service due to price burdens. This will build a virtuous cycle in the market and offer a profit increase for record labels, entertainment companies, artists and music composers.”

Per-streaming pricing has been unprecedented in the Korean music content market because most providers offer unlimited streaming for a prepaid flat rate.

KT Music said it wants to attract 3 million new customers for the service.

“What we are trying to do is enter an uncharted market,” Kim said. “We are targeting those who do not use a paid digital music service even when they have a mobile device.

“We believe that there are 30 million customers in this market and aim at attracting 10 percent of them as our customers by 2016. We expect that we can create a new market with 2-3 million customers.”

As a mobile music content platform, Genie holds about 20 percent of the domestic market, compared with the market’s leading service, “Melon,” provided by Loen Entertainment. Loen also operates a music production business.

KT Music said Loen was the only major music label that did not want to provide content to its service and but KT hoped to reach an agreement soon.

Kim said the decision to discount the streaming price to 10 won from 12 won will not cause losses for music content providers and artists.

“In distributing the profit of selling music contents, all vendors need to follow regulations set by the Ministry of Culture, Sports and Tourism,” he said. “The discount will be provided entirely by downsizing our own profit margin. Personally, I believe that music producers should be able to set prices that they believe reasonable and fair and regulations are needed to be set for this.”

Meanwhile, KT Music showcased a new music curation service called “Genie Life” to better support wearable devices and to meet diversified music content consumption patterns.