The Resurgent Audio Market... Repositioning of Music Streaming Platforms

[Asia Economy Reporter Kang Nahum] Audio content is making a comeback due to the spread of COVID-19 and the expansion of wireless device adoption. Music platforms that primarily focused on music tracks are evolving into comprehensive audio platforms by producing their own original audio content.

According to the industry on the 6th, music platforms operating in Korea such as Melon, Flo, and Spotify have recently been releasing original content with a radio concept one after another while actively investing in related areas. As the podcast and audiobook markets rapidly grow due to the spread of wireless devices like AirPods and Buds, they are expanding their business domains.

Melon, the number one music platform in Korea, operates an original audio content service called ‘Station.’ Launched in May last year, Station began with the original content ‘Star DJ,’ where popular artists directly curate playlists, share them within the Melon app, communicate with fans, and host programs exclusively.

Station features various formats such as music talk shows and audio variety shows, hosted weekly by representative artists from each genre, introducing a wide range of music genres and delivering music stories based on themes. Recently, it introduced a classical music talk show called ‘Bravo Classic.’ This content is planned and produced by Warner Music Korea and presented through Station. Bravo Classic aims to humorously explain the history and interpretation of classical music, which is often perceived as difficult, under the concept of ‘Let’s learn just three pieces a week.’

Another music platform, Flo, expanded its service in January by revamping its audio content targeting the MZ generation. It provides audio content reflecting the interests of the MZ generation, including informational and knowledge-based content as well as newsletter services.

Flo prominently places the audio content menu ‘Audio for You’ on the home screen and is also focusing on producing exclusive original content such as ‘Youngji’s Trend Hard Carry’ and ‘Cheese’s Mood Indigo.’ A Flo representative stated, "We are reprocessing existing newsletter-type content into audio content and experimenting with news digests like ‘CBS News 5 Minutes,’ produced in collaboration with broadcasters."

Spotify, a global music platform that recently launched its service in Korea, is the most aggressive investor. On the 31st of last month, Spotify announced the acquisition of ‘Betty Labs,’ the developer of the live audio app ‘Locker Room.’ As part of efforts to build futuristic audio formats, Spotify plans to accelerate expansion into the live audio business through this acquisition.

Previously, Spotify invested over $600 million to acquire podcast production companies Gimlet, The Ringer, Parcast, and platform company Anchor. It also signed exclusive content supply contracts with former U.S. President Barack Obama and his wife, as well as Prince Harry and Meghan Markle of the UK.

Gustav S?derstr?m, Spotify’s Chief R&D Officer, said, "There have been continuous requests from Spotify’s creators and fans for live format services," adding, "We are now able to provide live format services to hundreds of millions of listeners and millions of creators."