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Press Release
The number of monthly flat rate subscribers reached 470 thousand. This confirms that the Melon site ranked number one among paid music sites
SK Telecom’s ’Melon Partnership Program’ was released with the objective of promoting the music market
Music service providers introduced Melon’s flat rate music service worldwide. This flat rate rental type music service model is bolstering its position as a leader of a worldwide trend.
The number of paying subscribers to music services has rapidly increased.
SK Telecom announced on June 9 that ’Melon’, the world’s first wired and wireless integrated music portal(www.melon.com), which opened last November, grew to over 2 million subscribers. The number of paying subscribers that enjoyed an unlimited amount of music within that month for a monthly flat rate increased as well, reaching 470 thousand. Accordingly, the site ranked number one among paid music sites, in terms of sales revenue.
This notable outcome was achieved in 7 months after the launch of Melon. The company explained that Melon has been able to receive positive feedback from the market as it provides a new concept of ubiquitous music service that adapts a flat rate rental type music service model.
The flat rate rental type music service model lets customers enjoy unlimited downloading and streaming services with KRW 3,000, and KRW 5,000, flat rates. Virgin Digital, Napster, and Yahoo, introduced this rate system when they recognized its excellence. Domestic mobile service providers also adopted this flat rate system. The flat rate type music service model is solidifying its position as a worldwide trend.
SK Telecom disclosed the ’Melon Partnership Program’ that is designed to further strengthen the win-win partnership with music rights holders, as well as promote the general music market. In line with this, the company plans to select talented new singers each month, and support a maximum KRW 100 million fund for their musical album productions through a ’New Singer Album Production Support’ program. This will help develop high-quality music content, and boost the sluggish domestic music market. In addition, the company’s ’Digital Show Case Support’ program will be launched with the objective of supporting music promotion activities through Melon, prior to the production of music discs.
The goal that Melon has set for 2005 is to acquire a total of 3 million subscribers with 800 thousand paying subscribers. Melon also hopes to create an online cafeteria type community, which enables users to introduce and share information about music, around July. Starting mid-July, a Melon agent will be embedded in SK Telecom’s personal service called ’1mm’, allowing users to enjoy the music service on their cellular phones more conveniently.
Ahn Seung Yoon, head of SK Telecom’s Content Business Division stated, "Melon has been drawing positive attention from the worldwide market. Business Week recently carried an article stating that Melon is a better business model than Apple’s iford-Itunes. The increasing number of fixed rate subscribers has significant meaning because it implies that the paid system is taking root in the sluggish Korean music industry. "He also added "We will continue to offer a variety of customer-focused services such as ’Theme Zone’, that focuses on hot issues of the music industry, and ’Melon Juice’, that offers a music magazine. We will also make the utmost effort to solidify our position as the best music portal in the marketplace."
SK Telecom announced on June 9 that ’Melon’, the world’s first wired and wireless integrated music portal(www.melon.com), which opened last November, grew to over 2 million subscribers. The number of paying subscribers that enjoyed an unlimited amount of music within that month for a monthly flat rate increased as well, reaching 470 thousand. Accordingly, the site ranked number one among paid music sites, in terms of sales revenue.
This notable outcome was achieved in 7 months after the launch of Melon. The company explained that Melon has been able to receive positive feedback from the market as it provides a new concept of ubiquitous music service that adapts a flat rate rental type music service model.
The flat rate rental type music service model lets customers enjoy unlimited downloading and streaming services with KRW 3,000, and KRW 5,000, flat rates. Virgin Digital, Napster, and Yahoo, introduced this rate system when they recognized its excellence. Domestic mobile service providers also adopted this flat rate system. The flat rate type music service model is solidifying its position as a worldwide trend.
SK Telecom disclosed the ’Melon Partnership Program’ that is designed to further strengthen the win-win partnership with music rights holders, as well as promote the general music market. In line with this, the company plans to select talented new singers each month, and support a maximum KRW 100 million fund for their musical album productions through a ’New Singer Album Production Support’ program. This will help develop high-quality music content, and boost the sluggish domestic music market. In addition, the company’s ’Digital Show Case Support’ program will be launched with the objective of supporting music promotion activities through Melon, prior to the production of music discs.
The goal that Melon has set for 2005 is to acquire a total of 3 million subscribers with 800 thousand paying subscribers. Melon also hopes to create an online cafeteria type community, which enables users to introduce and share information about music, around July. Starting mid-July, a Melon agent will be embedded in SK Telecom’s personal service called ’1mm’, allowing users to enjoy the music service on their cellular phones more conveniently.
Ahn Seung Yoon, head of SK Telecom’s Content Business Division stated, "Melon has been drawing positive attention from the worldwide market. Business Week recently carried an article stating that Melon is a better business model than Apple’s iford-Itunes. The increasing number of fixed rate subscribers has significant meaning because it implies that the paid system is taking root in the sluggish Korean music industry. "He also added "We will continue to offer a variety of customer-focused services such as ’Theme Zone’, that focuses on hot issues of the music industry, and ’Melon Juice’, that offers a music magazine. We will also make the utmost effort to solidify our position as the best music portal in the marketplace."