Get rid of real-time graphics, pay as much as you hear … Will the music accumulation disappear?

Spotify, the world’s largest music platform. We recommend music that users like. [사진 스포티파이]

Changes are being detected in the national music distribution market everywhere. As Spotify, the world’s largest music platform, is about to enter the Korean market this year, SKT Flow has abolished real-time sound charts, and Naver Vibe has started new experiments, such as changing the font distribution method. Sound. Conservative consumers who have used the connected music service to telecom operators are also changing the market as they move to new platforms like YouTube music.

According to market research firm Korean Click, the share of Kakao Melon, the # 1 provider in terms of monthly net user (MAU) in March, fell to 36.8%. It has been in a steady decline since the 40% line collapsed in September last year. Second place KT Genie Music and third place also decreased 0.9% and 0.4%, respectively, showing 24.8% and 17.3% market share. On the other hand, Google YouTube Music, which ranks fourth, increased by 2.7% from 6.3% to 9.0%. As for the number of users, it increased by 54% from approximately 990,000 to 1,153,000.

The main reason why Korean manufacturers check Spotify is overwhelming. As of Sweden in 2008, it is in service in 79 countries, including the United States, France, and Japan, and at the end of last year, the number of net users reached 270 million. Members who pay $ 9.90 per month (about 12,000 won) are 124 million, which is half the level, but no problem. By listening to ads, users can listen to music for free and pay the copyright fee to the creators to get what they want.

The healing system that combines this big data and artificial intelligence (AI) technology is also a strength. Like Netflix, a subscription-based online video platform, we recommend music that meets your tastes. Providing a 1: 1 playlist of songs with a high probability of being liked by users every Monday, ‘Discover Weekly’ has been particularly responsive. The probability of hitting is high, reaching 17% of the time spent on Spotify.

Spotify released the fourth quarter 2019 results. [사진 스포티파이]

Spotify has also been on the Korean market for a long time. This is because K-pop fandom, like BTS and Black Pink, has spread across the globe, and K-Pop music has played for over 140 billion minutes from January to January of last year. In January, he founded Spotify Korea in Gangnam, Seoul, and Peter Granddelius, the general manager of headquarters, showed enthusiasm. The goal was to launch a service in June this year, but it may be delayed a little after the new coronavirus infection (corona19).

Flow that replaced the real-time chart that was released hourly in March with a 24-hour cumulative chart. [사진 플로]

The changes that the national music service is pursuing are also similar in direction. Ultimately, real-time sound charts must be abolished, and personalized services must be provided to escape the hoarding controversy, as well as showcase unique products by company. To this end, Flo has abolished the hourly real-time ranking since March 19, and has announced only the cumulative 24-hour ranking. As a result of the 1-month trial, the first and second place ratings, such as Cho Jung-suk’s ‘Aroha’ and Oh My Girl’s ‘Slightly Flirting’, are not much different, but the phenomenon like aligning the songs that appear every time an idol group releases a new album Disappeared

Flo did not dwell on this, saying earlier this month that she plans to present a “favorite chart.” As a result of analyzing the usage pattern of the ‘Top 100’ table, it is planned to display a custom table that is rearranged according to personal preferences, reflecting the playback history and user preferences, focusing on half of the users who use only the three main songs.

Vibe proposed changing the method of calculating the music usage fee from a proportional distribution system to a user-centered system. [사진 바이브]

Vibe, which removed the real-time chart in January last year, announced that it would go one step further and introduce a new settlement method called “Viiv Payment System (VPS)” in the first half of this year. Currently, I use a ‘proportional distribution system’ that distributes the profits to copyright holders, such as singers and songwriters, based on the number of views played by the total sound source fee paid by consumers, but my money it’s the music I listen to, the so-called ‘my money’ for my favorite singer. It is meant to be rearranged in the ‘Listen’ method (personal agreement). He is also active in public relations, such as holding a rapper Mamison as a model and running related campaigns.

Leader Lee Tae-hoon, who is in charge of Naver Music Business, attended a seminar on “Improving the Sound Source Establishment Method for the Development of the Sound Source Ecosystem” on the 21st of last month and revealed the simulation results. For example, if A and B pay a fee of 10,000 won each, A assumes that singer C sings 10 times and B listens to singer D’s songs 90 times, then B pays 2,000 won, which is 10% of the total 20,000 won. On the other hand, D will receive 18,000 won, which is 90%. However, if you apply the Vibe method, you will receive 10,000 won each. He explained, “As a result of applying the new method, the amount of music that many users listen to increases and the amount of music that many users listen to decreases.”

Lee Tae-hoon, the leader in charge of Naver Music Business, attended the seminar on how to improve the sound source settlement method to develop the sound source ecosystem on the 21st of last month. From July to December 2019, the simulation results of the best 200,000 songs played in the environment are announced. [영상 캡처]

However, it is still unknown if this method will be well received by all. The reason is that the less you listen to music, the higher the unit price per song. For a user who pays 10,000 won a month and listens 10 times, it is 1,000 won per song, but for a person who listens 1,000 times, it is 10 won per song. “It can help solve problems like storing music sources, but it is not a fundamental solution,” said Yoo Jae-jin, director of the Korea Music Industry Association. Both methods are based on the fact that the creator’s rights are not fully recognized by the distribution of the relationship within the flat fee system.

Some have pointed out that first and second rank operators must show up for real change. Gaon Chart Kim Jin-woo, principal investigator, said: “In the past, Samsung Music has also removed real-time charts and launched curation services, and Apple Music, the second largest company in the world, entered the Korean market in 2016, but it’s still struggling. ” It means that it is difficult for the consumer usage pattern to change in an instant.
However, it was felt that it was very timely to introduce a new system. This is because the demand for pop continues to rise, and the proportion of pop on the forty-fourth annual chart increased from 6.2% in 2009 to 23.9% in 2018. Public opinion that the big music site overlooks the problem. Accumulation is also beneficial for startups. He added: “Korean music has a short history compared to pop, and the genre is partial, so applying an algorithm can make obtaining an appropriate result difficult.” The key question is how much Korean songs can be insured and localized services can be provided. It seems to me.

Reporter Min Kyung-won [email protected]