Melon rises as biggest beneficiary of domestic AI speaker market

Melon rises as biggest beneficiary of domestic AI speaker market. December. 25, 2017 07:36. by Hyun-Seok Lim lhs@donga.com.

Artificial intelligence (AI) speaker, vehicle infotainment and other new technologies are igniting competition within the music market. By forming a partnership with AI speakers, music businesses appear to increase the number of new members and prevent previous members from withdrawing. IT entities are actively making efforts to secure users via promotions linked to music service.

Melon, No. 1 music service provider based on the number of members (about 4.4 million), is known to be the biggest beneficiary of the growing AI speaker market.

“In case of purchasing AI speakers, it is more likely to use music service that is in partner with the AI speaker,” said a person from the music industry. “This leads to more royal customers, which prevent withdrawing from using the service.”

Moreover, by inducing people to choose not only a rate system for smartphone users but also one that allows people from listening to music from AI speakers, the average sales per member may also increase as well.