Domestic Music Platforms Turning Their Attention to the Metaverse

[Asia Economy Reporter Kang Nahum] Domestic music platforms are all jumping into new metaverse-related businesses. As their positions narrow due to the expansion of overseas music platforms, they are moving away from traditional content-centered business models to create new sources of revenue.

According to industry sources on the 3rd, Flo, operated by Dreamus Company, a subsidiary of SK Square, has decided to collaborate with SK Telecom's ifland to build a 'creator economy' that grows together with creators and artists. Ifland is a metaverse social communication service operated by SK Square.

The plan is to strengthen communication between audio-based creators and fans within Flo while expanding communication opportunities into metaverse spaces. Flo's audio creators combine music with content of various genres and tastes, reprocess it on Flo, and continue real-time interactive communication with fans in virtual metaverse spaces.

KT affiliate Genie Music is also promoting a new metaverse music service business. To this end, it recently signed a business agreement with mobile game developer HaeGin. The two companies plan to launch a metaverse music show within the year. They will provide users with a new form of metaverse performance that combines Genie Music's virtual reality (VR) content production know-how with HaeGin's game technology. Based on K-pop digital content and AI music creation expertise, they are also preparing a metaverse-type music business. Millie's Library, acquired by Genie Music, is also planning to offer e-books in metaverse spaces.

In addition, NHN Bugs has begun stepping into related businesses by signing a BGM supply contract with Cyworld, which is preparing a comeback with metaverse services. Melon is not directly conducting metaverse business, but since its operator Kakao Entertainment is actively engaging in K-pop business using metaverse, such as developing virtual idols, it is expected to play a significant role.

The reason domestic music platforms are entering metaverse-related businesses is analyzed to be due to their shrinking positions in Korea caused by the strong performance of overseas platforms like YouTube Music and Spotify. An industry insider said, "As the growth of domestic music platforms stagnates, a breakthrough is needed. In that sense, the metaverse, which is seeing an increasing number of users, is an appropriate item for music platforms to adopt as a new growth engine."