Genie Music Achieves Record High Cumulative Q3 Performance... "Increase in Music Distribution Revenue"

[Asia Economy Reporter Hyunseok Yoo] Genie Music announced on the 13th that it achieved cumulative sales of 184.3 billion KRW and an operating profit of 9 billion KRW for the third quarter of this year. This represents an increase of 8.8% and 44.7%, respectively, compared to the same period last year. Sales and operating profit for the third quarter were 62.9 billion KRW and 3.8 billion KRW, respectively.

Genie Music explained that the reasons for the strong performance include ▲collaborative achievements with shareholder companies KT, CJ ENM, and LGU+ ▲increase in average purchase price per customer through cost efficiency and advancement of the AI music platform Genie service ▲growth in music distribution sales due to expansion of overseas K-POP music platforms.

Despite the prolonged COVID-19 pandemic, Genie Music strengthened its paid music platform customer base through diversification of music bundle products with shareholder companies KT and LGU+ and advancement of the Genie music platform service. Additionally, in the music distribution business area, synergy with CJ ENM increased domestic and international music distribution sales. Domestic sales increased due to the success of CJ ENM’s drama OSTs and affiliated artists’ music, as well as growth in overseas K-POP sales through partnerships with overseas music platforms such as Tencent and FUGA. Overseas music distribution sales were recorded to have increased by 74% compared to cumulative sales in the same period last year.

Along with this, Genie Music refrained from wasteful low-price promotional competition for subscriber acquisition and promoted music service advancement last year to create integration effects between Mnet.com and the Genie platform.

Recently, Genie Music completely revamped its AI music platform Genie and introduced ‘Music Color,’ a curation service that matches music with colors, the first of its kind among music platform companies. The ‘Music Color’ service matches over 20 million songs with 333 colors, presenting customers’ music preferences through colors. Based on this, customers can intuitively expand their music listening experience. Having succeeded in differentiation by introducing ‘Music Color,’ a curation service that is a level above existing music platform industry curation services, Genie Music plans to strongly drive AI-based service advancement and connected area convergence music business, widening the gap with existing music service companies.

Jungsoo Park, Head of Management Planning at Genie Music, said, “This year, our company has continuously improved management performance by strengthening core competitiveness in the music business through structural improvement,” and added, “We will continue to strengthen the original competitiveness of the AI music platform to create services that innovate customer experiences.” He also stated, “We will expand the convergence music business area based on network-technology-core content competitiveness by strengthening collaboration with shareholder companies KT, CJ ENM, and LGU+.”