Asia marketing and innovation strategy – www.innovationcorner.com

An interactive Asia B2B marketing and growth strategy blog from www.solidiance.com to discuss ideas, thoughts and spread the "Growth & Innovation Gospel" across Asia

Asia mobile music changing industry paradigm

Mobile operators may soon be your music supplier . With the fast disappearance of CDs, new music distribution models are springing up around Asia .

Korea is already the world leader in online music sales with just over 90% of music sales coming from online technologies which puts Korea  #1in the world. In 2009, mobile music sales in Korea will hit USD 390 million and at the current growth rate the industry should hit USD 500 million by 2015. Similar trends are observed in Japan.

Mobile operators in Korea have been the fastest to innovate and capture the mobile music market. Since 2008, Korean mobile carriers, especially SK Telecom view music streaming and downloading as the next cash cow for data services. In a quasi coup d’état the Korean mobile operators have transformed the music distribution platforms.

SK Telecom, has provided a mobile music portal service called ‘MelOn’ since 2004. MelOn is the first integrated, wired and wireless, music service that allows users to enjoy music virtually anytime, anywhere using a portable MP3 player, a PC, or a mobile phone. The key MelOn interface is a music download and streaming Internet portal, http://www.melon.co.kr. The service is similar to a rental service, with users “renting” tracks on a monthly basis for use on various terminals. MelOn users pay a 5000 won (US$4.50) monthly subscription to stream music or download tracks to their phone as long as their subscription is current. To download tracks onto the handset, users pay for airtime at regular call rates, regardless of the size of the track.

This end-user friendly platform has completely changed the music landscape and is now being reproduced in Australia, Hong Kong, Singapore, Thailand by local mobile operators.

Mobile Music Industry Asia

How did the Korean mobile operators  innovate and transform the music industry?

-Thanks to its mobile music platform convenience and affordability, music piracy in Korea has dramatically dropped to negligible levels.
-The Korean music industry has been revived after a few years of limited growth.
-Content providers are either being acquired / merged or forced out of business by the mobile operators which are now becoming music integrators more than just distributors.
– With 30% margins, the Korean mobile operators commend the highest distribution margin in the Korean music value chain
– With the artists themselves, mobile operators have become by far the main drivers and key success factors of music in Korea.
-Only smart phones need to apply…

Damien Duhamel
www.solidiance.com
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About Solidiance

Summary: Corporate strategist with extensive Asia-based management & operational experience. Manages the long-term strategic planning of the organization. Responsible for multi-country team management, PBIT and revenue growth, geographical expansion, business development, key staff recruitment, business unit strategy and processes. Speaks English, French, Vietnamese and "Survival" Japanese. In Asia Pacific for the past 21 years. Specialties: Disruptive innovation strategy & implementation, Expansion strategy, Benchmarking, Asia market entry strategy, Market research Asia, Market sizing, opportunity analysis & market feasibility, Sales & demand forecasting, Competitive intelligence and strategy, Customers acquisition & loyalty, New product development, Distribution & value-chain optimization, Industrial B2B branding, Partner evaluation & selection, M&A due diligence - valuation, Marketing & Corporate strategy, Emerging markets

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