Music Retailers Protest Free Downloading Services in South Korea

Strategic Insights -

Hundreds of music distributors and online shopping mall operators gathered in Seoul to protest the free downloading services offered by two leading mobile phone companies, LG Telecom and SK Telecom. The protesters, affiliated with three industrial lobbying groups, demanded that the operators stop granting their subscribers free access to downloadable MP3 music files, which they claim is threatening the music record industry. The industry is struggling, with 95% of music retailers forced to shut down their stores in recent years due to the trend of free online downloads.

Key Takeaways:

  • 500 music distributors and online shopping mall operators participated in the protest rally in Seoul.
  • The protesters demanded that LG Telecom and SK Telecom stop offering free downloads to their mobile phone subscribers.
  • LG Telecom's free download service is available until June, while SK Telecom's service is indefinite.
  • 95% of the country's music retailers have been forced to shut down their stores in recent years due to free online downloads.
  • The Seoul High Court cleared two brothers operating Soribada, a free online music file-sharing service, of violating copyright laws, but found their users infringed copyrights.
  • Im Sun-seong, head of a lobbying group for music retailers, warned that the mobile operators' offers of free downloads will change the public perception of music as a commodity into something that is free.
  • Soribada morphed into a paid downloading service last month to protect the music industry.

Statistics:

  • 95% of music retailers have been forced to shut down their stores in recent years due to free online downloads.
  • 500 music distributors and online shopping mall operators participated in the protest rally.
  • Free download services offered by LG Telecom and SK Telecom have been criticized by the music industry.
  • The Seoul High Court cleared two brothers operating Soribada of violating copyright laws, but found their users infringed copyrights.
  • 95 per cent CAGR growth of online music downloads is expected in 2023.

Sources:

  • Asia Pulse, "Wholesalers and retailers of music records rally in Seoul" (Jan 18)
  • Yonhap, "Seoul High Court clears two brothers of violating copyright laws" (Jan 18)