There are changes afoot in the way streaming revenues in South Korea are divided up between the streaming platforms and rightsholders (and thus musicians). From next year, rightsholders will get a 65% share of the streaming pot, up from 60% in the current system, while the streaming businesses will see their share decrease from 40% to 35% accordingly.
“The recent changes have been implemented as part of the improvements to the environment for artists in culture and in the arts, and so we have increased the distribution of profits,” said a spokesperson for the Korean Ministry of Culture, Sports and Tourism. “We hope to lessen the pressure on consumers by providing an environment with the same prices for consumers and increased compensation for artists, so we have decided to end the discounted streaming services.”
For now, there will be no change to the prices that people pay for streaming subscriptions in South Korea. Meanwhile, the authorities are also phasing out the option to get a discount of between 50% and 65% when buying download ‘packages’ of more than 30 songs, although this will happen gradually over the next three years.