Starting on January 1, 2019, there will be an increase in how much those who create music will receive from streaming websites.

The Ministry of Culture, Sports, and Tourism has revealed that the distribution of profits would ultimately be increasing for the Korea Music Copyright Association (KOMCA), the Together Music Copyright Association, the Federation of Korean Music Performers, and the Korean Record Industry Association.

According to the Ministry of Culture, Sports, and Tourism, starting from next year, the division of profits from streaming will increase from 60 percent to 65 percent for those who create music, while the division for those who work on the business side will be decreased from 40 percent to 35 percent. The division of profits regarding downloaded content will not be affected, as there had already been a change from 60 percent to 70 percent in 2015. For profits from unsold goods such as download packages, their unit price for the song as well as the highest sum of the sales will be taken into account.

The current system of having music discounts of 50 to 65 percent when purchasing download packages of more than 30 songs will also come to an end. For the next three years, the discount rate will be used as an adjustment price, and the download packages will come to an end by 2021. The option to purchase solely streaming at a discount rate of 50 percent will also be unavailable after 2021.

In order to create as minimal of an impact as possible for consumers who have a huge influence on the market, the collection rules for consumers will not be changed. Unless consumers leave or cancel their subscription, they will be able to continue to use their streaming services at the same price.

A representative from the Ministry of Culture, Sports, and Tourism stated, “The recent changes have been implemented as part of the improvements to the environment for artists in culture and in the arts, and so we have increased the distribution of profits. We hope to lessen the pressure on consumers by providing an environment with the same prices for consumers and increased compensation for artists, so we have decided to end the discounted streaming services.”

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