[AI Revolution](37) The Era of AI Composing... Genie Music Boosts 'AI Creation' Business

Genie Music Expands Content Value Chain After Acquiring Music AI Startup 'Juice'
"AI Creation, Core Growth Engine for the Future... Will Advance Platform"

Artificial intelligence (AI) is making its mark even in the arts, particularly in the field of music, which has long been considered an irreplaceable domain. From children's songs to drama OSTs, professional baseball team anthems, and even classical music, AI is swiftly entering the realm of creation. This is seen as an opportunity for domestic music platforms facing challenges due to YouTube Music's dominance in the Korean market. Genie Music has positioned itself as a leader in AI creation among domestic music platform companies by acquiring startups with AI music technology and increasing investments this year.

In October last year, Genie Music made a 5.1 billion KRW equity investment in the music-related AI technology startup 'Juice,' acquiring 41.16% (38,123 shares) and becoming the largest shareholder. Founded in 2016, Juice is a startup that has expanded its business areas from music analysis to music creation based on advanced AI technology. It possesses AI technology directly related to music content, such as AI-based real-time lyric sync, background music (BGM) content production, digital score creation, and holds numerous development patents.

With advanced structured data analysis technology, Juice has also launched and operates educational business solutions such as the personalized music education service 'Cisum' and the music education solution app 'Annyeong Dodo' for infants and toddlers. The excellence of these technologies was recognized with investment from KAIST Youth Startup Investment.

Genie Music's acquisition of Juice aligns with CEO Hyunjin Park's future vision to discover new revenue streams beyond music services. The plan is to expand business areas into performance business, audio content, and AI creation to secure future core growth engines.

CEO Park particularly focused on the AI creation field due to its market growth potential. According to the U.S. market research firm Market US, the generative AI music market is expected to grow to $2.6 billion (approximately 3.12 trillion KRW) by 2032, with an average annual growth rate of 28.6%. Generative AI has opened new creative opportunities and is expected to lead market expansion in areas such as composition, music mastering, streaming, and sound design.

CEO Park stated, "Currently, the domestic digital music market is stagnating amid fierce competition with global companies. We judged that securing AI technological competitiveness suitable for the AI creation era, advancing the platform, and expanding the content business value chain are the solutions." He added, "We will secure growth engines by promoting new businesses creatively combined with new technology trends."

Results have begun to show. At the end of last year, Genie Music created AI Christmas music and provided it to commercial districts in Gyeonggi Province, entering the B2B BGM market. This AI Christmas music was produced by Juice. Juice used deep learning based on AI training music data to learn the characteristics of Christmas carols. Reflecting carol genres, keywords, instruments, and tempo, a total of 20 songs were created. Thanks to this, in the commercial districts and streets of Gyeonggi Province, 20 AI-created Christmas songs provided by Genie Music could be played without performance fees or royalties.

Also, in the same year, Genie Music collaborated with Juice to produce the OST for the audio drama 'Welcome to Hyunamdong Bookstore.' It was a remake of singer Tae's 'Same Pillow,' arranged using AI. Genie Music expects AI arrangement technology to be actively used in the cover music market, which is rapidly expanding alongside the increase of one-person media.

Genie Music also entered the home shopping market. The AI BGM planned and produced through collaboration between Genie Music and Juice is used as the signal song for KT Alpha Shopping's flagship shopping program 'Shin Jinyoung's S shop#.' Reflecting the bright and honest character of Shin Jinyoung, a professional shopping host with 20 years of experience, and the high-quality shopping program targeting women in their 40s, the signal song was produced as a bossa nova-style bright and lively BGM.

Genie Music plans to advance AI music creation technology with Juice while collaborating with agencies holding original songs to create new types of remake songs and expand into areas such as drama OSTs, entertainment BGM, production of entrance songs for management programs, and metaverse music creation. CEO Park said, "We will create an environment where anyone can make cover songs of their favorite artists with AI without any knowledge of music theory, and once AI copyrights are recognized, users will be able to directly own the music IP (intellectual property) of their AI-created songs."