Media War

Like Netflix, Apple hurried to launch its music streaming service without K-Pop in order to glean big data.
Like Netflix, Apple hurried to launch its music streaming service without K-Pop in order to glean big data.

 

Global ICT companies went to contents war. It is global ICT companies’ strategy to sell contents such as music or videos to smartphone users expected to hit two billion this year.  

According the related industry on August 8, Internet companies such as Google, Naver and Kakao as well as global smartphone manufacturers such as Samsung Electronics and Apple are having music streaming service competition.    

In response to Korean music streaming services such as Samsung Electronics’ Milk Service and Melon Service, Apple began Apple Music Service on August 5. Apple is already offering Apple Music Service in ten countries including the US. In Korea, its monthly service fee is two dollars cheaper than the US. Although it was expected that it will be a real challenge for Apple to start its service in Korea as K-Pop accounts less than 20% of Apple Music’s total contents, Apple blitzed to launch its music streaming service.

Netflix is also strengthening its invasion into the Korean market by publicizing differentiated contents with the start of its service in Korea. The online movie streaming company began to directly produce films and shoot TV shows, saying that they will secure contents specialized for Korea and Southeast Asia. “It is the only digital contents that can receive five to ten dollars from two billion consumers around the world,” one industry watcher said. “Global ICT companies will fiercely compete in the contents and media market.”

The three major telecommunication companies in Korea are intensifying media business competition. KT’s IPTV-related sales swelled to 411.1 billion won (US$357.4 million) in the second quarter of this year from 355.6 billion won (US$309.2 million) in the same period of last year. During the same span, those of SK Broadband and LG U+ jumped to 199.2 billion 

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