South Korean music apps struggle with YouTube Music

YouTube Music recorded 9.53 million monthly active users (MAU) in March 2025, according to data from industry tracker Wiseapp.

This total is significantly higher than Melon, the second-most popular platform, which reported 6.44 million MAU.

Spotify ranked third with 3.28 million users, followed by Genie Music with 2.59 million MAU.

The strong lead by YouTube Music has led local competitors to revise their strategies to attract more users.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Local streaming services maintain paid subscriber advantage despite YouTube’s dominance

A notable market contradiction exists in South Korea’s streaming landscape: while YouTube Music leads in monthly active users with 9.53 million, Melon maintains stronger paid subscriber loyalty.

The Recording Industry Association of Korea (RIAK) found that 52.7% of surveyed subscribers prefer Melon, while only 31.2% choose YouTube Music, revealing a significant gap between free usage and paid subscriptions 1.

This suggests Melon’s K-pop-focused strategy, offering exclusive artist content and fan engagement opportunities, effectively converts casual listeners into paying customers despite having fewer overall users.

The gap highlights how deeply embedded local services remain in Korea’s music ecosystem, with Melon, Genie, Flo, Vibe, and Bugs collectively maintaining stronger paid subscriber bases than global platforms 2.

This reflects challenges faced by other global streaming giants in penetrating the Korean market, where localized content and fan experiences appear to drive higher willingness to pay.

2️⃣ Strategic partnerships creating new listening contexts beyond traditional playlists

Genie Music’s partnership with Hyundai Motor Company represents a strategic shift toward contextual music experiences, moving beyond the traditional playlist model.

This collaboration boosted Genie’s in-car users by 59% year-over-year, demonstrating the effectiveness of targeting specific listening environments rather than competing solely on content libraries.

The partnership approach aligns with broader industry trends where streaming services seek differentiation through integration with other products and services rather than competing on catalog size alone 3.