Music Downloads
According to industry sources on January 19, Google formally announced that it would enter the Korean digital music download market. However, the company reportedly has had difficulty negotiating with local digital music distributors such as LOEN Entertainment and KT Music, as well as music licensing groups such as the Korea Music Copyright Association and the Recording Industry Association of Korea.
Last year, Google began to negotiate with them, but so far has only signed an agreement with CJ E&M, Soribada, and the Music Industry Association of Korea.
Industry analysts are raising questions about whether or not Google’s entry in the local digital music download market will be delayed for a long time owing to problems with negotiations.
The reason for a delay in striking a deal with local digital music distributors lies in the fact that Google’s cloud-based digital music service is a direct threat to them.
Google’s cloud-based digital locker is a place where users can store their music. Local digital music distributors have yet to provide cloud-based digital music services.
Music licensing groups are raising issues over illegal music apps on Google Play, urging Google to normalize the local digital music download market. They think that if Google wants to provide a digital music service in the country, it should contribute to creating the ecosystem of the Korean music industry rather than seeking to harm the industry’s growth.