[Click eStock] Cube Entertainment Expands into China Partnering with Wang Yiwen Music

Contract with music platforms funded by Chinese IT giants Baidu and Alibaba
Lineup established from 'G-IDLE' to 'CLC', 'Pentagon', and rookie groups

Girl group (G)I-DLE. Photo by Cube Entertainment

[Asia Economy Reporter Minwoo Lee] Cube Entertainment, which will launch full-scale business in China in partnership with Wangyi Music, a leading Chinese music platform, is expected to experience high growth.

On the 5th, Hyundai Motor Securities maintained a 'Buy' rating on Cube Entertainment and raised the target price to 5,000 KRW. The closing price on the previous day was 4,140 KRW. Since Cube Entertainment signed an exclusive music supply and joint promotion contract worth 7.5 billion KRW with Wangyi Music, a subsidiary of China's NetEase Group, more aggressive business expansion is expected in the future.

Wangyi Music is a leading Chinese music platform with 900 million music users. It operates under China's NetEase Group and, along with Tencent Music, dominates the Chinese music market. Among the three major Chinese IT giants, Baidu and Alibaba have also invested in it.

This contract is regarded as a strategic alliance that goes beyond a simple music supply agreement, considering the strengthening of promotions for Cube Entertainment artists in mainland China and future offline activities. Additional business opportunities such as intellectual property (IP) projects utilizing Cube Entertainment artists, including performances and management contracts related to activities in China, are expected to open up.

Researcher Seongman Yoo of Hyundai Motor Securities said, "The affiliate KVLY is hosting an online charity event on the 20th, featuring artists from Korea, China, Japan, Taiwan, and Hong Kong, with participation from Cube Entertainment artists, which strengthens relationships with China and gives a favorable position in the China-oriented business." He added, "A stable lineup is being established, including '(G)I-DLE,' which recently rose to a higher status, the returning 'CLC' and Pentagon, and rookie idol groups set to debut from the end of this year through the first half of next year." He continued, "Although offline activities are temporarily restricted due to the novel coronavirus (COVID-19), the music and joint promotion contract with Wangyi Music is expected to accelerate on- and offline business toward China."