Spotify launched in South Korea in February 2021 with out its ad-supported tier.
Now, after three-and-a-half years, the streaming firm says that its “Free” possibility is offered available in the market.
Spotify says that the launch of its ad-supported tier in South Korea, the world’s seventh-largest recorded music market (IFPI), marks a major milestone for the platform.
In line with Spotify, the introduction of its free tier “opens an thrilling new avenue for advertisers and types in South Korea seeking to attain a predominantly younger, extremely engaged viewers”.
Spotify generated international Advert-Supported Revenues of €456 million ($490.97) in Q2 2024, up 12% YoY at fixed forex, reflecting double-digit Y/Y progress throughout all areas.
Globally, Spotify counted 393 million ad-supported MAUs in Q2 (the three months to finish of June), which was up 5 million versus the prior quarter (Q1).
The addressable market in South Korea is critical. In line with Datareportal, there have been 50.30 million web customers in South Korea in the beginning of 2024, when web penetration available in the market stood at 97.2%.
Spotify noticed its international Premium Subscriber base develop to 246 million paying customers in Q2, up by 7 million internet subscribers on the 239 million reported for the prior quarter (Q1 2024).
Commenting on the launch right this moment (October 10), Gautam Talwar, Spotify’s Basic Supervisor for Asia Pacific, mentioned that the supply of the corporate’s free tier in South Korea “means large potential for brand new audiences, discoverability and in the end, extra income for artists”.
Along with the doubtless vital advert income profit for the streaming service available in the market, Spotify will probably additionally hope to transform a portion of its Free userbase in South Korea to paying subscribers sooner or later.
Spotify famous in its announcement right this moment that “all over the world, most subscribers start their Spotify journey with a Free account” however that “free customers can select to improve to the Premium expertise for on-demand, ad-free music listening at any time”.
Spotify affords three paid tiers in South Korea, Particular person, Duo and Primary, that are priced at 10,900, 16,350 and seven,900 South Korea Gained, respectively (see beneath).
Spotify says that artists from South Korea throughout all genres now surpass a mixed 5.8 billion month-to-month streams on common, which marks over 70% progress for the reason that platform’s launch in South Korea three years in the past.
SPOT cites markets akin to the US, Indonesia, the Philippines, Japan, Mexico, Brazil, Thailand, India, South Korea and Taiwan as being among the many prime streamers of music from South Korean artists.
“The launch of Spotify Free in South Korea is an thrilling second, not just for shoppers however for artists and the business at giant.”
Gautam Talwar, Spotify
“The launch of Spotify Free in South Korea is an thrilling second, not just for shoppers however for artists and the business at giant,” mentioned Gautam Talwar, Basic Supervisor, Asia Pacific, Spotify.
“We’re opening the door to each Korean listener to begin discovering and connecting with tens of millions of songs and podcasts with our expertise and repair – which implies large potential for brand new audiences, discoverability and in the end, extra income for artists.”
Added Talwar: “We launched Spotify in South Korea in 2021, and since then we’ve been working to attach extra Korean artists to listeners domestically and all over the world.
“We’re dedicated to rising and increasing artists’ attain worldwide and the launch of our Free providing available in the market will add much more Korean listeners to that blend.”Music Enterprise Worldwide
