Subscribe
E-Paper
MelOn sends messages to lure users to continue subscription
By Lee Min-hyung
Kakao is raising the ire of music streaming application users for its subsidiary's marketing strategy.
Last year, the company acquired LOEN Entertainment, the operator of the nation's largest music streaming app MelOn. The service holds 28 million subscribers with more than a 50 percent market share over its rivals such as KT Genie, CJ E&M's Mnet and NHN Entertainment's Bugs Music.
But the service faces growing criticism due to its retention strategy — it makes it almost impossible for users to unsubscribe by hiding the tab.
Plus, once subscribers cancel their pay services, the app sends a "default message" to them, saying "Warning: Did you check all the benefits you can get at MelOn?" every time they operate the app.
Due to the complicated and irritating processes for discontinuing the service, a number of users cried foul at the company's practices. They shared detailed methods of how to leave MelOn once and for all.
They claim overseas services like Netflix and Amazon Prime adopt user-friendly content-driven platforms, which they say are simple enough for any user to sign up and quit easily.
Despite the growing customer complaints, the company hasn't made any changes.
"I withdrew MelOn membership and double-checked it. But the next month, it charged me," a user said in an online comment.
Others have complained of similar cases.
"So many people have so far fallen victim to the same problems," another user said. "To prevent the recurrence of similar incidents, users need to keep screenshots of withdrawal applications from MelOn services."
The company, however, has yet to announce any specific measures to deal with the complaints.
In 2004, SK Telecom created the music streaming platform to diversify its revenue streams by taking advantage of its customer base. The company then sold MelOn to LOEN Entertainment in 2008.
Kakao, the operator of the nation's dominant messenger service Kakao Talk, then acquired LOEN Entertainment in January last year, seeking to combine the music platform with its mobile app businesses.
At that time, Kakao acquired a 76.4 percent stake in the company for 1.87 trillion won ($1.64 billion).
