[Asia Economy Reporter Eunmo Koo] Genie Music, a media group company under KT Group, announced on the 10th that it will invest 46.4 billion KRW to acquire a 38.6% stake in Millie’s Library (Millie-ui Seojae), securing the position of the largest shareholder. By acquiring Millie’s Library, the number one subscription-based e-book company in Korea, Genie Music plans to leap forward as the country’s leading ‘Artificial Intelligence (AI) Audio Platform’ company.
The ‘AI Audio Platform’ is a new service that combines audio content such as music streaming, audiobooks, and audio entertainment with AI technology. Millie’s Library, which launched its monthly subscription e-book service in October 2017, had accumulated 3.5 million subscribers and holds 100,000 e-books as of May, making it the top subscription-based e-book service platform in Korea.
In the audiobook sector, Millie’s Library owns over 3,000 audiobooks and is pushing to produce more than 1,000 audiobooks monthly by utilizing its e-book inventory. Additionally, through diverse original content such as ‘Audiobooks with Visible Books’ featuring various celebrities and fully narrated audiobooks with multiple voice actors and sound effects, it is advancing as the number one audiobook service platform.
Along with the expansion of the domestic and international e-book and audiobook markets, Millie’s Library is experiencing rapid growth. Last year, it recorded sales of 19.2 billion KRW, a 75% increase compared to the previous year. Millie’s Library is planning to go public in 2022. According to investment banking (IB) industry sources, Millie’s Library’s corporate value exceeded 150 billion KRW based on last year’s performance, and considering industry cases, its value is expected to more than double.
To become the top AI audio platform in Korea, Genie Music plans to gradually provide Millie’s Library’s audiobook content through its AI music platform, Genie, within this year.
Going forward, Genie Music aims to produce and add various audio content such as audiobooks, audio entertainment, and audio dramas to firmly establish itself as the number one AI audio platform in Korea.
Genie Music customers will be able to use Millie’s Library services at a lower price. Genie Music plans to launch a bundled subscription plan combining its music streaming service Genie with Millie’s Library.
Additionally, Millie’s Library services will be offered to KT’s wired and wireless customers through various methods. Beyond KT, Genie Music will also pursue diverse collaborations with its shareholder companies LG Uplus and CJ ENM.
Significant synergies are also expected between KT Group and Millie’s Library. KT, which is strengthening its media value chain centered on KT Studio Genie, will be able to secure IPs with high content hit potential through Millie’s Library, Korea’s top story IP platform.
KT Studio Genie will receive IPs from Millie’s Library to produce video content, which will be serviced through Olleh TV, Season, SkyTV, and other platforms.
Millie’s Library will serve as the starting point of KT Group’s media value chain, and this is expected to lead to a reevaluation of KT Group’s value in the media sector.
Books serviced through Millie’s Library will also benefit from easier expansion into secondary works such as audiobooks, audio dramas, and video content within KT Group’s content ecosystem. A virtuous cycle is anticipated where users who encounter secondary works are encouraged to seek out the original books.
KT’s AI technology is expected to play a significant role in producing Millie’s Library audiobooks. Audiobooks can be produced with various voices, including not only registered voice actors but also family members, famous singers, and characters, drastically reducing time and costs.
Cho Hoon, CEO of Genie Music, said, "We will use AI technology to provide creative audio content, expand services into connected areas to increase auditory market share, and enhance Genie Music’s corporate value."
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