K-Buzz

YouTube Music has taken the top spot in South Korea's music streaming market by monthly active users (MAU). In April 2025 YouTube Music recorded 9.79 million MAU, representing about 42% of the market. By contrast, domestic platforms that once held roughly 80% have seen their combined share fall to around 44%. The rise of global services and the local response could reshape the industry's structure.

Why did YouTube Music expand so quickly in Korea?

First, the current picture.

The industry landscape flipped in a short time.
YouTube Music and Spotify together now control a majority of users.
In April 2025 YouTube Music's MAU was 9.79 million, ranking first.
In the same month Melon stood at about 6.01 million.

However, user choice is largely shaped by convenience and price sensitivity.
In particular, bundling (including services together) and free ad-supported tiers have accelerated migration.
This is not merely an app-preference story; it signals structural change across the business.

Meanwhile, as switching becomes more frequent, platform competition refocuses on recommendation algorithms and user experience (UX).
Global platforms leverage built ecosystems to enter local markets quickly.
All these factors combined produced the current share distribution.

Tracing the shift.

Four years ago Melon, Genie and Flo controlled roughly 80% of the market. Since then YouTube Music and Spotify increased their shares by about 19 and 11 percentage points respectively, changing the landscape.

From 2019 through 2021 competition relied on local services' exclusive content and user loyalty.
However, from 2022 global players adopted new tactics.
Bundling, ad-supported free tiers, and stronger recommendation systems made it easier for listeners to switch.

On the other hand, domestic platforms initially responded with curated, differentiated content but could not match the pace of change.
Consequently, the 2023 balance—Melon about 7.0 million versus YouTube Music about 6.0 million—reversed by 2025.
In the same interval Spotify's free-tier strategy helped it grow from roughly 1.42 million in 2024 to about 4.24 million in August 2025.

Arguments for foreign platform advantage.

Convenience and price competition move users.

The core advantage is accessibility.
YouTube Music's bundling strategy lowers the marginal cost of trying a new service.
Including music for YouTube Premium subscribers effectively removes a barrier to switching.

Meanwhile Spotify's free, ad-supported tier attracts cost-sensitive listeners.
An ad-based free model removes the initial price barrier and rapidly expands the user base.
This pressures traditional pay-first ecosystems.

The global ecosystem can recruit users faster than local innovation.
Foreign services bring established creator and label networks, large cross-market datasets for recommendations, and global marketing muscle to local markets.
That combination can yield rapid MAU gains.

Cost also matters.
When users can access the same content for less money or with extra perks, they move platforms.
As a result market share has shifted toward foreign platforms.

From this perspective, the argument that foreign platforms hold an advantage is reasonable.
When convenience, price, and recommendation quality align, consumers tend toward global services.
That choice shows up directly in MAU and revenue measures.

The case for a domestic comeback.

Local platforms play a key role in the K-pop ecosystem and in supporting creators. That role goes beyond headline market share and ties to the industry's long-term sustainability.

The core issue is ecosystem maintenance.
Melon, Genie and Flo have historically invested in discovering new artists, supporting concerts, and sharing streaming revenue.
If that structure atrophies, artists' incomes and industry diversity could suffer.

On the other hand, domestic platforms are pursuing fine-grained curation and offline events that use local data to build loyalty.
For example, Melon has introduced K-pop charts aimed at Korea, China, and Japan and is staging offline concerts to reconnect fans.
They are also rolling out AI-powered recommendation tools to strengthen personalization.

Local platforms help sustain the circulation that keeps K-pop healthy.
Artist discovery, concert production, and regional fan communities create value that does not translate neatly into streaming counts.
So weakening domestic players could erode structural parts of the ecosystem.

Policy responses are available.
Reviewing bundling from a fair-trade perspective could relieve some competitive pressure.
At the same time public investment and targeted support can help local firms close technological gaps.

Therefore a domestic rebound is not merely aspirational.
With focused localization, industry cooperation, and public-private support, regaining share is feasible.
However it requires time, capital, and appropriate institutional backing.

Deeper causes.

The explanation rests on three interacting drivers.
Bundling and free tiers, recommendation algorithms, and shifting user behavior combined and amplified one another.

Bundling reduces incremental cost and encourages trial.
Including music in YouTube Premium speeds conversion.
Simultaneously Spotify's ad-supported free tier quickly absorbs price-sensitive segments.

Recommendations and data use are the engine of market control. Increasing return visits and listening time ties directly to monetization.

Recommendation systems raise dwell time, which drives ad revenue and paid upgrades.
Global platforms benefit from larger cross-market datasets that can improve recommendation accuracy.
Local services struggle to match that scale.

User behavior has changed as music listening blends more tightly with daily life.
YouTube's mix of video and audio has raised expectations for integrated content experiences.
That convergence shifts how people compare services.

At the same time capital and investment determine scalability.
Global firms can allocate more resources to marketing and product improvement.
Domestic firms must often choose between spending on technology or on exclusive content with limited budgets.

Policy and industry recommendations.

Fair competition and local ecosystem protection must be balanced.

Policy should aim for balance.
Bundling and tying practices deserve fair-trade scrutiny, but blunt regulation could stifle innovation, so careful design is essential.

At the industry level, both cooperation and differentiation are required.
Local platforms should invest in AI-driven recommendation tech, enhance offline experiences, and seek global partnerships.
They must also negotiate fairer revenue splits with labels and agencies to continue supporting creators.

Investment plus smart policy will determine domestic competitiveness.
Governments can offer R&D incentives and funding for startups and smaller platforms.
Private firms should diversify business models and pursue international alliances.

Finally, user choice matters.
Consumers weigh price, convenience, and content variety.
Platforms must continuously improve the user experience to remain relevant.

Conclusion.

The point is simple.
Foreign platforms' growth rests on convenience, price, and recommendation technology.
Domestic services need strategic responses to preserve the K-pop ecosystem.

In three sentences:
First, YouTube Music and Spotify strategies have driven market-share shifts.
Second, weakening domestic platforms affects parts of K-pop's circulation—artist discovery, concert production, and local fan communities.

Third, a balanced mix of policy, investment, and platform innovation can restore a healthier ecosystem.
Industry leaders and policymakers should look beyond short-term share battles to long-term structure.
Which factor do you think matters most?