Behind the Scenes: The Fall of MTV Asia and the K-Pop-Driven Rise of Mnet

• In Event: Producing Popularity: Behind the Scenes of the K-Pop Wonderland

Abstract

The celebrated establishment of MTV Asia, in Singapore in 1995, epitomizes the "glocalization" of the music video market in Asia. MTV Asia overcame initial mismanagement, localized video content, and launched the first MTV Asia Awards in 2002. Repeated financial crises (2008-2012) in America and Europe presented new opportunities for Asia-produced music videos distributed by Asian companies, and young East and Southeast Asians increasingly turn to Mnet, a Korean music video channel that often features K-Pop idols, for their entertainment. As Mnet's dominance increased, MTV lost ground, unable to provide new content innovations. This paper analyzes both the market and organizational factors in Mnet’s success in light of drastic changes in the global music media such as the increasing importance of video content. I argue that the rise of Mnet depends in large part on its monopoly over K-pop production and distribution systems that are not outsourced to other parts of Asia, including Japan and China. Furthermore, the localization strategy of the global music content promoted by MTV Asia through satellite channels could not match Mnet’s globalization drive. Backed by K-pop’s strong producing and distributing capabilities, Mnet developed direct access to local broadcast networks as well as cable channels, leveraging capital to buy up local channels for its K-pop content. Mnet successfully vied for monopoly K-pop distribution rights, significantly contributing to K-pop's continued success in Asia. This case study utilizes financial and archival data, as well as interviews, to explain Mnet's important contribution to K-pop's success.

Author

• Ingyu Oh, Korea University