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| ▲ This image, provided by Korea Creative Content Agency, shows utilization rate of music streaming and download services in Korea in 2022. (PHOTO NOT FOR SALE) (Yonhap) |
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| ▲ This photo, provided by YouTube, shows the logo of YouTube. (PHOTO NOT FOR SALE) (Yonhap) |
SEOUL, Jan. 29 (Yonhap) - YouTube, the world's No. 1 video platform, and YouTube Music, an affiliated music service, are continuing their success in the domestic music market.
When the utilization rates of YouTube and YouTube Music are combined, it has already surpassed Melon, the No. 1 music platform in Korea, and due to their growth, Genie, a domestic company, has fallen to fourth place.
According to the "2022 Music User Survey Report" by the Korea Creative Content Agency on Sunday, Melon has topped the list with 32.8% of the "Music Streaming and Download Main Use Service."
YouTube has ranked second with 28.7%, and YouTube Music third with 9.8%. Genie, which was third until the previous year, fell one notch to fourth place.
It was followed by FLO (6.1%), NAVER VIBE (3.6%), Bugs (3.1%), Spotify (1.8%), Apple Music and Kakao Music (1.3%), and Soribada (0.9%).
The survey was conducted on 3,500 people aged 10 to 69 nationwide from July 22 to August 26 last year who used music content more than once every two to three months over the past year.
On the surface, Melon has remained at the top of the music platform, but a closer look reveals the "crisis" of the domestic platform.
According to the survey, the usage rate of Melon fell for the third consecutive year from 36.4% in 2020 to 34.6% in 2021 and 32.8% last year.
On the other hand, YouTube utilization rate rose from 26.0% in 2020 to 28.7% last year. Accordingly, the difference in utilization rate between the two platforms has decreased from 10.4% points in 2020 to 4.1% points last year.
In particular, if YouTube and YouTube music are combined, the utilization rate will rise to 38.5%, surpassing Melon and ranking first.
The combined utilization rate of YouTube and YouTube music was already 35.5% in 2021, beating Melon (34.6%) by 0.9 percentage points, and the gap widened by 5.7% points last year.
The reason YouTube is doing so well in the music market is because prices have a great influence in the process of consumers selecting platforms.
When asked why they chose music streaming and downloading services, 30.3%, the largest number of respondents, said "because it was free" (or because of a lot of discounts). Subsequently, 25.2% of the respondents said, "Because it's what I've been using."
An official from the music industry said, "These days, YouTube is familiar because even middle-aged and elderly people consume videos extensively besides young consumers," adding, "I think people use it a lot because they can listen to music and watch videos together."
Some in the domestic music platform industry point out that YouTube and YouTube Music's price policies are not fair.
The monthly fee for major music platforms in Korea ranges from 7,000 won to 8,000 won. However, YouTube also provides free YouTube music services if you use the YouTube Premium, which allows you to watch videos without advertisements, for about 10,000 won a month.
An official from the music industry criticized, "Users are most sensitive to prices when using digital music services, but YouTube is strengthening the inflow of the platform with 'tie-in sale'," adding, "This gives the perception that music is free."
Official then pointed out, "Native music platform companies have increased their cost burden due to Google's in-app payment fee policy, but they are suffering from a double whammy of a decrease in subscribers due to YouTube's bundling."
In response to this criticism, YouTube only replied, "The position has not yet been taken down from the headquarters."
(This article is translated from Korean to English by Yunhee Cho.)
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