SK Telecom is presenting a new paradigm that will create a breakthrough in the digital music market which has been limited in growth due to existing free music services being offered by illegal duplication and transmission of copyrighted music.

On November 15th, SK Telecom announced the launching of a music portal service called ’Melon’ that utilizes ’Digital Right Management’ (DRM) technology. The DRM technology prevents illegal distribution and use of wired and wireless integrated networks, platforms, and digital content. ’Melon’ is a new concept of ubiquitous service that lets customers enjoy music anytime and anywhere, with any device.

For a monthly flat rate of 5,000 won, the Melon service lets customers enjoy streaming services, and also download and reproduce their rented music through wired and wireless terminals without limitations, during the subscription period. However, the music service will be automatically suspended by DRM after the one month subscription period, unless the customer subscribes to the service again.

Through this service, customers who use conventional paid music services can relieve the cost burden of downloading each piece of music. The ’Melon’ service can also protect the rights of music source producers who are being damaged by free digital music downloading services that perform illegal duplication and transmission of copyrighted music.

Seoung Yoon Ahn, vice-president in charge of SK Telecom’s Portal Business Division said, "This new rental type music service model will contribute to increasing the consumer’s ability to enjoy their music service. In addition, it will certainly accelerate the development of the digital music market by promoting a pay for music service".

Ji Hoon Kang, director of T Entertainment, also revealed that the ’Melon’ flat rate service will be an excellent way to counteract the conventional illegal music market, and increase the overall size of the music market.

An official in charge of Sony BMG, Korea’s New Media, commented affirmatively, "The ’Melon’ flat rate service is a more upgraded service package that has a next-generation ubiquitous concept. It supports a broad spectrum of devices, compared with the wire-line streaming and downloading flat rate service commercialized by Virgindigital.com of the U.S."

’Melon’ is a ubiquitous service provided by a combined wireless EV-DO network and a wired high-speed network. This service enables / real-time streaming on wire-line web sites, / listening to digital music received from PCs through MP3 phones / listening to digital music through cellular phones on a wireless network while paying a call traffic rate only / listening to digital music through MP3 players.

The ’Melon’ service also offers a ’Digital Showcase’ section that lets customers enjoy their favorite singers’ music recorded prior to the launching of music disks. This will contribute to revenue creation for music source producers.

Furthermore, as the service introduces an ’In-Disy World’ section that furnishes vital music of ’In-di Bands’ free of charge, a number of music manias will have an opportunity to enjoy new type of music.