The Digital Music market in South Korea has experienced significant growth in recent years. Customer preferences have shifted towards streaming services, leading to a decline in physical music sales.
Additionally, the market has been influenced by local special circumstances and underlying macroeconomic factors. Customer preferences in the Digital Music market in South Korea have been shaped by the convenience and accessibility of streaming services. With the rise of smartphones and high-speed internet, consumers are increasingly turning to platforms such as Spotify and Apple Music to listen to their favorite songs.
This shift in preference has led to a decline in physical music sales, as consumers no longer need to purchase CDs or DVDs to enjoy their favorite music. Trends in the market indicate a growing demand for Korean pop music, also known as K-pop. K-pop has gained international popularity in recent years, with South Korean artists such as BTS and Blackpink topping global charts.
This trend has led to an increase in the consumption of digital music, as fans around the world stream and download K-pop songs. The success of K-pop has also prompted international streaming services to expand their offerings in the South Korean market, further driving the growth of the Digital Music industry. Local special circumstances have also played a role in the development of the Digital Music market in South Korea.
The country has a strong music culture, with a vibrant music scene and a large number of talented artists. This has created a favorable environment for the growth of the Digital Music industry, as consumers are eager to discover and support local musicians. Additionally, the government has implemented policies to promote the digitalization of the music industry, providing support and incentives for digital music platforms and artists.
Underlying macroeconomic factors have also contributed to the growth of the Digital Music market in South Korea. The country has a high internet penetration rate and a tech-savvy population, providing a solid foundation for the adoption of digital music services. Furthermore, South Korea has a strong economy and a high disposable income, allowing consumers to spend on digital music subscriptions and downloads.
These factors have created a favorable market environment for the Digital Music industry to thrive. In conclusion, the Digital Music market in South Korea has experienced significant growth due to customer preferences for streaming services, the popularity of K-pop, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected that digital music consumption will continue to increase, driving further growth in the industry.
Data coverage:
The data encompasses B2C enterprises. Figures are based on the Music, Radio & Podcasts market, which comprises all revenues generated by traditional and digital radio advertising, consumer purchases of live music event tickets, all sales of tangible audio recording formats, paid digital downloads of professionally produced single tracks / compilations, ad-supported services, and subscription-based, on-demand streaming services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.Modeling approach / market size:
The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.Forecasts:
We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.Additional notes:
The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.
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