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June 28, 2005

Korean Internet Portal Daum Changes Streaming Strategy

Korea Times: Daum Communications, Korea’s second-biggest Internet portal site, recently drew back its offering of free music streaming services in the face of strong opposition from record labels...

The company now states that "it will limit the free streaming of any music files to just once from the previous three times a day for users", which is an abrupt change from Daum’s previous statement last week that it would continue to enable its customers to stream any music files registered at Daum site three times a day."

Unless I'm missing something major here - Daum's innovative approach makes perfect sense because if it pays broadcast fees for the music streamed (instead of the individual Web surfers)...Why wouldn't the labels like a new revenue stream in the face of declining global CD sales and why is the industry so against an on-demand radio system that is technologically completely trackable and payable to the rightsholders?

Posted by Todd in Asia | Permalink

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