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