Korea Music Copyright Association Renews Contract with Netflix... Five Years of Music Copyright Fees Settled

Copyright Fees for 2021-2025 Usage Scheduled for Distribution

Korea Music Copyright Association logo. Provided by Korea Music Copyright Association

The Korean Music Copyright Association has renewed its music copyright licensing agreement with Netflix. With the settlement of music usage fees for 2021 to 2025, which had been the subject of lengthy negotiations, a major hurdle regarding music copyright fees for online video streaming services (OTT) has been surmounted.

On the 27th, the Association announced that it had signed a new contract with Netflix for the use of music copyrights between 2021 and 2025. Netflix paid music usage fees for this period, and the Association stated it will review the accompanying documentation and gradually allocate copyright royalties to rights holders.

This is not the first time the two companies have signed a music copyright agreement. In 2018, the Korean Music Copyright Association and Netflix entered into a contract covering music copyright usage from 2016 to 2020. Subsequent discussions over the application and calculation methods of OTT music copyright collection rules, which had been approved by the Ministry of Culture, Sports and Tourism, delayed the next round of contract signing.

The Ministry of Culture, Sports and Tourism has been working to mediate differences between the OTT industry and music copyright organizations, while also promoting revisions to the collection rules. After ongoing negotiations, the Association and Netflix reached an agreement on the contract terms based on the current OTT royalty collection regulations.

This round of settlement includes music used in domestic films, TV dramas, and animations provided on Netflix between 2021 and 2025. The Association will review the usage data received from Netflix, assess the details and rights for each title, and allocate royalties accordingly.

Music copyright fees for OTT platforms have emerged as a major issue for the music industry, as the domestic video content market has expanded. Unlike traditional broadcasting, OTT requires a separate music copyright collection standard, and there have been differences between platform operators and copyright organizations regarding royalty rates and application methods. This contract is significant in that it has completed the settlement of five years’ music usage between Netflix and the Association.

An official from the Association said, "We hope this will serve as a foundation for stable settlement of music royalties from OTT platforms and become a standard in negotiations with other platforms."

Chairman Lee Siha of the Association remarked, "Collecting OTT copyright royalties has been a core priority since before I took office. As Korean content and music are now distributed globally through Netflix, we have worked to ensure that creators receive appropriate royalties."

A Netflix representative stated, "Netflix has continuously sought ways to grow together with creators, and, through this agreement, creators’ rights related to the use of domestic music can now be guaranteed."

This content was produced with the assistance of AI translation services.