"Genie Music, Expanding Devices Including AI Robots and Automobiles"

Korea IR Association Corporate Research Center Analysis Report

[Asia Economy Reporter Park Hyungsoo] The Korea IR Council Corporate Research Center forecasted on the 9th that Genie Music, which had been primarily servicing smartphones, will grow by expanding to various devices such as artificial intelligence (AI), robots, the Internet of Things (IoT), and automobiles.

Kim Jaeyoon, a researcher at the IR Council, said, "Genie Music, which operates music content distribution and the Genie platform service, supplies Genie to KT's AI robots and automobile manufacturers," adding, "It has entered a phase of device expansion."

He continued, "While the focus had been on increasing smartphone subscribers, from this year onward, growth momentum is expected through the expansion of new devices."

Genie Music is also expanding its business as a comprehensive audio service platform based on content from affiliated companies such as the KT Group, CJ ENM, and Millie's Library (Millie's Seojae). It is a platform capable of providing not only audio services like audiobooks, entertainment, and dramas but also video media such as virtual reality (VR) performances. It is expected to overcome the limitations of domestic music platforms and enable new subscriber growth.

Researcher Kim explained, "The value of the shares held due to Millie's Library's listing, in which Genie Music is the largest shareholder, is also expected to be highlighted," adding, "Besides the simple external growth factor of increased consolidated sales, there is a high possibility of synergy effects between KT's AI technology and Genie Music's music platform."

Last year, Genie Music acquired the e-book and audio platform Millie's Library, becoming the largest shareholder with a 38.6% stake. Millie's Library is the number one e-book operator in Korea and owns a large reading platform with a monthly active user (MAU) base of 430,000. Its sales last year amounted to 28.9 billion KRW. It is preparing for a public listing targeted for 2024.

Researcher Kim added, "Millie's Library recorded a loss last year due to increased marketing expenses aimed at market preemption," and "the valuation appeal could significantly increase from the point Millie's Library turns profitable." .