SM C&C, the advertising and cultural content affiliate of SM Entertainment Group, moved to upgrade its business structure on the back of results from its music IP business.
SM C&C posted 100.4 billion won in revenue last year, laying a foundation for stable growth. Based on this, it created a new record division within its entertainment business unit and signed exclusive contracts with the "Top 11" artists selected through the SBS audition program "Our Ballad."
Our Ballad aired on SBS and Netflix, achieving a peak minute rating of 7.6% and placing No. 2 on Netflix Korea's Top 10 series. The 95 tracks released in tandem with the broadcast also entered the upper ranks of the charts, extending their popularity.
Through this initiative, SM C&C built a music business value chain that runs from music production to management and concerts. By combining singer development and IP business with its existing MC- and variety-talent–centered management business, it diversified its revenue structure. It is also expanding K-pop into the ballad genre by leveraging SM Entertainment Group's production capabilities, and nurturing artists based on its in-house incubating system.
The concert business also delivered results. The nationwide tour held from January to March this year drew about 13,000 cumulative attendees, with some regions selling out all seats.
SM C&C plans to release about 18 tracks centered on the Top 11 artists and expand the business with diverse content such as drama OSTs and remake tracks.
Park Tae-hyun, CEO of SM C&C, said, "2026 will be the year we firmly establish the music IP business and prove tangible results."