Breaking: YouTube Music Dominates South Korean Market with AI Innovations
Urgent – June 20, 2023
Google’s Voluntary Correction Plan for YouTube Music
In a significant move, the Fair Trade Commission has approved Google’s YouTube Premium Light, a new product under YouTube’s exclusive video service. This voluntary correction plan aims to address the controversy around YouTube Music Selling and solidify YouTube’s already dominant position in the South Korean music market.
Market Share Shift: YouTube Leads with 42%
According to recent data, YouTube Music commands a 42% share of the market, dwarfing domestic competitors like Melon (26%), Spotify (14%), Genie Music (11%), and Flo (8%). This shows that YouTube Music has become the go-to platform for music enthusiasts in South Korea.
Overseas Platforms Gain Traction
The growth of overseas music platforms has been remarkable. Combined, YouTube Music and Spotify have 1.38 million users, exceeding the total number of domestic platform users. Interestingly, 56% of domestic users now prefer overseas platforms. This indicates a notable shift in consumer behavior, with users increasingly favoring international services.
Domestic Platforms Struggle Amidst Competition
Melon, once the absolute leader, has experienced a decline in its market share and user base. Melon’s monthly active users dropped from 7.14 million in April 2023 to 6.61 million in April 2025, signaling potential challenges in retaining users.
On the flip side, Spotify has seen a 56% increase in monthly active users with their new “Spotify Free” plan, showing the appeal of freemium models in attracting users.
AI Innovations Drive New Competitive Edge
Artificial intelligence is shaping the future of music streaming. YouTube Music integrated AI-curated playlists, while Spotify introduced AI-driven DJ services. Additionally, French platform Daza reports that AI-generated songs now account for 20% of new releases, with over 20,000 AI songs uploaded daily.
The integration of AI technology highlights the competitive advantages global platforms offer, forcing domestic platforms to seek strategic differentiation through K-Pop and other unique content.
