Soribada "Shedding Existing Weaknesses and Rebounding as a Culture and Content Platform Operator"

[Asia Economy Reporter Jang Hyowon] Soribada (CEO Jo Hogyeon) announced on the 3rd that starting this year, the company will shake off its existing weaknesses and improve its business areas to expand its scope as a culture and content-based platform operator.

Soribada, Korea’s first-generation music distribution company, is now accelerating its structural reform to transition from simple music distribution to a platform business that comprehensively utilizes the company’s assets, and stated that it will continuously expand its touchpoints with online and offline customers.

On the 16th, Soribada disclosed the reasons for being designated as a management item at the internal settlement point, stating that operating profit decreased due to increased music business costs caused by the sudden termination of the Samsung Music contract and the prolonged COVID-19 pandemic’s adverse effects on the entertainment and cultural industries.

Amid expectations of designation as a management item due to long-term operating losses, Soribada responded, “We deeply feel the limitations of the existing music business and agree that change is necessary,” adding, “We are rapidly progressing with the transformation into a culture/content platform business.”

Regarding recent rumors about delisting, the company stated that there is no reason for delisting and dismissed the rumors.

A Soribada official said, “Although a significant impairment loss on investment assets in affiliates, which accounted for a large portion of total assets at the end of the recent fiscal year, is expected to be reflected, we have secured momentum to focus on the company’s core business and completed cost structure innovation through strenuous efforts, laying the foundation for the company’s resurgence.”

Soribada plans to strengthen distribution and production businesses beyond its existing music B2C services and is currently pursuing various music distribution contracts targeting China and Southeast Asia. The company is making company-wide efforts to directly produce content and secure music rights for YouTube and OTT markets, and aims to expand customer touchpoints by producing online/offline content linked to entertainment business combined content production, Soribada Awards, environmental concerts, camping, surfing, running, and various culture/leisure fields, as well as expanding fashion/distribution businesses. It stated that this year will be the first year of transformation into a platform business operator.

Additionally, Soribada plans to expand its fashion business area from the existing footwear sector to clothing and accessories, expecting meaningful results within the first half of the year. The company plans to launch more than two new brands this year, including its own brand ‘Stair’ and the newly launched ‘Saint Marine’ last year, and will develop and distribute fashion/accessory products in collaboration with celebrities, entertainers, and artists, expecting sales to increase by more than 100% compared to the previous year.

A Soribada official said, “We recognized the saturation of the music market and the limitations of the existing business areas and felt the need for change,” adding, “We plan to leap beyond the framework of a first-generation music distribution company into a culture/content-based platform company through bold structural reforms and business area expansion. We will also achieve a turnaround to profitability within the first half of the year through cost structure improvement and sales increase.”