SM Entertainment (hereinafter SM) and China's largest music platform Tencent Music Entertainment Group (hereinafter TME) are embarking on a strategic collaboration to target the global market. The two companies signed a memorandum of understanding (MOU) on May 29 and agreed to establish a comprehensive cooperation system.
This collaboration significantly expands the scope of cooperation beyond the existing music distribution-focused partnership to include co-production of new idol groups aimed at the Asian market, IP business, and local performances. With TME recently acquiring SM's equity previously held by HYBE, becoming a major shareholder, the collaboration between the two companies has gained momentum.
The combination of SM's global IP and content production capabilities with TME's vast user base platform and distribution infrastructure is expected to create explosive synergy in Asia and contribute to enhancing the competitiveness of both companies.
In particular, this collaboration includes showcasing a local Chinese idol group with a debut goal set for the next 2 to 3 years, with SM responsible for casting, training, and producing, while TME will handle local promotions, record sales, and music distribution. The two companies plan to jointly nurture an idol group that represents Asia.
In the IP business, the two companies will jointly develop various projects, including physical and digital photo cards, character merchandise, pop-up stores, and video content within China.
In the performance sector, the two companies will strengthen their collaboration on tours of SM artists, including the SMTOWN LIVE concert scheduled to be held in Hong Kong in 2026. They also plan to broadly target online fan bases through live streaming services utilizing SM's Beyond LIVE technology.
This strategic partnership, which combines the strengths of both companies, marks a significant turning point in expanding SM's global influence and solidifying its position in the Chinese market, expecting to create new business models and further solidify its standing in the global market.
[Photo] SM Entertainment
[OSEN]