MOU Signed on May 29
On May 29, SM Entertainment announced that it had signed a memorandum of understanding (MOU) with Tencent Music Entertainment Group (TME), a Chinese music platform.
SM stated, "This collaboration significantly expands the scope of cooperation beyond the existing focus on music distribution, to include joint production of new idol groups targeting the Asian market, intellectual property (IP) business, and local concerts." The company added, "As Tencent Music recently acquired SM shares previously held by HYBE and became a major shareholder, full-scale cooperation between the two companies has begun."
The two companies plan to debut a local Chinese idol group within the next two to three years. SM will be responsible for the entire production process, including casting, training, and producing, while TME will handle local promotions and the distribution of albums and digital music.
In the IP business, the companies will jointly develop physical and digital photocards, character merchandise, pop-up stores, and video content within China.
In the performance sector, they will strengthen cooperation on tours for SM artists, including the SM TOWN LIVE concert scheduled to be held in Hong Kong in 2026. They also plan to target online fan communities through live streaming services utilizing SM's Beyond LIVE technology.
SM stated, "This strategic partnership marks a crucial turning point for expanding SM's global influence and solidifying its position in the Chinese market." The company added, "We expect it to create new business models and further strengthen our presence in the global market."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
