Korean Artists Just Got a Pay Raise from Music Streaming Services

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In the music industry, the battle for fair compensation for artists has been ongoing for years. In Korea, this battle has gained serious traction, resulting in higher artist royalties for several music streaming services. Starting from January 1, 2019, artists will see a growth in their royalties, thanks to a newly-issued government edict. This is a significant win for artists who have been struggling with low compensation for their work.

The Korean music industry is considered one of the most vibrant and innovative in the world. Many Korean music artists have gained international fame and success, which has put the Korean music industry in the spotlight. However, despite the success of its artists, the Korean music industry has been struggling with low compensation for its artists.

The new law will impact several music streaming services, including MNet and Melon. The Ministry of Culture, Sports, and Tourism has announced the changes alongside the Together Music Copyright Association, the Federation of Korean Music Performers, the Korean Record Industry Association, and the Korea Music Copyright Association (KOMCA). These organizations have been advocating for fair compensation for artists for years.

Under the new law, artists will see an increase in their royalties from 60 percent to 65 percent, while the business side will receive a pay cut from 40 percent to 35 percent. This move is aimed at lessening the pressure on consumers while providing an environment with the same prices for consumers and increased compensation for artists. The discounted streaming services will come to an end, which is a significant change for music streaming services in Korea.

The new law will only impact music streaming services, and downloaded content won’t be impacted. Downloadable content’s profits in 2015 rose from 60 percent to 70 percent, and the Ministry is even getting rid of discounts on downloadable products. Over the next three years, the discount rate on bundled downloads will be placed as an adjustment price. Ultimately, download packages will come to a screeching halt before 2022. Currently, purchasing a download package of more than 30 tracks is often used to leverage a 50-65 percent discount.

Consumers will be able to remain at their current price for their desired music streaming platform, unless they cancel and come back or leave altogether. The new law is expected to benefit artists in the long run, as it will provide them with fair compensation for their work.

The Korean music industry has been undergoing significant changes in recent years. The rise of K-pop has put the Korean music industry on the global map, and the industry has been experiencing significant growth. However, this growth has come at a cost, as artists have been struggling with low compensation for their work. The new law is a significant step towards ensuring that artists are fairly compensated for their work, and it is expected to have a positive impact on the Korean music industry as a whole.

In conclusion, the new law in Korea is a significant win for artists who have been struggling with low compensation for their work. The law will impact several music streaming services, and it is aimed at providing fair compensation for artists while lessening the pressure on consumers. The Korean music industry is expected to benefit from the new law in the long run, as it will provide artists with the compensation they deserve.