The three telecom operators, whose average monthly ARPU per subscriber has continued to decline due to rate cuts and discount programs, are seeking to expand their revenues based on `sound service`. In the meantime, the sound source service has been steadily being provided mainly by the subsidiaries of three telecom companies, but recently it has been growing as a new `speaker` with the rapid expansion of the user base based on artificial intelligent speakers and smart home service.

According to the telecom and content industry, telecom companies are strengthening `music services` based on AI speakers, smart homes and smart cars.

First, KT and LG U + are partnering services. KT has decided to cultivate Ginny Music as a representative of media platform and is moving away from streaming providers and based on artificial intelligence (AI) and big data. LG Uplus broke the stereotype of `competitors` and joined with KT as its second shareholder, acquiring a stake in Genki Music. Both companies are seeking service upgrades such as virtual reality service, Genie VR, Big Data, and AI-based customized guidance (curation).

LG U + is expanding its use of Apple Music, which recently launched its official service in Korea. 5 months to allow users to experience for free. Apple Music has allowed Australian Telstra, UK EE and Germany`s Deutsche Telekom to experience it overseas. LG U + said, "The participation of KT`s Gini Music and the expansion of Apple Music services have increased subscriber growth and ARPU." The quality of the communication service is virtually leveled and there is no big difference in consumer choice. "We are making an investment to provide consumers with `taste sniffed` mobile communication services."

Although SK Telecom provides melon service, it is crucial to terminate the alliance after selling Loan to Cacao. However, SK Telecom, which is seeking to expand its market dominance, is unlikely to break up with LoNe, the No. 1 music service provider. In particular, with the spread of AI speakers and AI home services, the use of music services is expanding to children, 4050 housewives, and more than 60 silver classrooms.

KT officials also commented, "The main age group that consumes sound service is from 15 to 34. However, the spread of voice service has been widening due to the spread of intelligent services and AI speakers. "Children can listen to their favorite songs, comic motifs, and latest songs through services that allow people to talk like people, and housewives and older people who are far from smart devices can help with religious activities such as gospel songs, hymns, And that it has been used in a variety of ways. "

Telecom companies are strengthening their sound services because it is hard to expect more sales or profits due to the saturation of subscribers in the mobile phone market. The number of Korean mobile phone subscribers has surpassed the total number of Koreans in Korea by 50.2 million in September 2010, seven years ago. As of the end of August this year, the number of LTE subscribers exceeded the saturation of 60,366,85, and the number of LTE subscribers who acted as a new source of revenue for telcos exceeded 70%.

For this reason, the three telecom companies, which were in urgent need of creating new `added value`, are looking for ways to strengthen their music services.

In the 3G communication service, streaming music is not easy to listen to on mobile phones because of traffic congestion and poor sound quality. However, thanks to stable mobile environment and speed support after LTE adoption, the viewing environment has improved.

In particular, telecom companies are strengthening the marketing of sound source consumption in the form of listening to family members with the purchasing power of 35-44 year olds, showing the subscription based music service. Mobile carriers are estimating this market to be around 8 million.

By Kang Eun Seong esther@


[ copyright ⓒ The Digitaltimes ]