KT's new bundle tests if unbundling YouTube Music impacts market share.
South Korean telecom operator KT has launched a new bundle plan that includes YouTube Premium Lite, which provides ad-free YouTube viewing without access to YouTube Music. The plan offers subscribers a choice between a Genie Music subscription or a Millie’s Library subscription. The move is viewed as a key test of whether unbundling YouTube Music from the core ad-free video offering can help domestic music streaming services regain market share from the dominant YouTube Music.
Key Takeaways
- KT is the first Korean telecom operator to offer a bundle built around YouTube Premium Lite.
- Subscribers to the new plan must choose between receiving a subscription to Genie Music or the e-book service Millie’s Library.
- YouTube Music is the market leader in South Korea with an estimated 7.21 million users, ahead of Melon (4.76M) and Genie Music (2.4M), according to Embrain Deep Data.
- A successful outcome for Genie Music could encourage other domestic platforms like Melon and FLO to pursue similar partnerships with telecoms SK Telecom and LG Uplus.
Why It Matters
This bundle creates the first significant test case in the Korean market to decouple demand for ad-free YouTube from a bundled music service. It directly targets users who value ad-free viewing but may be indifferent to YouTube Music, providing a potential subscriber acquisition channel for Genie Music. Domestic competitors have long argued that YouTube's bundling strategy stifled competition. If Genie Music shows meaningful gains, it could give other local services like Melon and FLO a strong rationale to push for similar unbundled offerings with other telcos. The metric to watch over the next three months is the selection rate for Genie Music versus Millie's Library within the plan.
Read full article at it.chosun.com
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