SM Entertainment, which reigns as the largest song agency in Korea, is preparing for a higher place in 2019. Even in the recent bad news that has been sweeping the Korean music industry such as 'Burning Sun', SM Entertainment is showing its strength as a 'one-top' without a big wind or crisis.
SM Entertainment is also in the process of entering a new era as its artists are entering various transitions. Nevertheless, SM Entertainment pursued it, and the prospect that the value to pursue in the future will remain unchanged.
"In 2019, 1Q earnings slump? Expected 2Q gains"
SM Entertainment's recent earnings in the securities and business world were somewhat disappointing. Some have seen a sharp decline in operating profit in the first quarter of 2019, with the phrase "earnings shock." (In the first quarter of 2019, sales of 130.8 billion won and operating profit of 2.8 billion won) However, the results of overseas soundtrack earnings were not bad, and the reasons for the sluggish 1Q 2019 earnings were the lack of album releases by their Singers, and the sluggishness of subsidiaries such as SM C&C and Keith.
In other words, it is an industry analysis that there is still an expectation that if the activities of the Singers who are the main products of SM Entertainment become active, they will be able to achieve above this.
The extraordinary contract size with China Tencent Music Entertainment, the time of EXO's comeback, and the expectation of Rising Boy Group's domestic and overseas activities classified as Next K Pop The Artist such as NCT, WayV are also factors that can give wings to the position established by SM Entertainment.
Xiumin and EXO D.O. and Minho enlistment? EXO units and RED Velvet are coming
SM Entertainment’s Singers have been in a “conversion period” in many ways: EXO, which reigned as the main product, is a member of Xiumin (May 7), EXO D.O. (July 1)'s active service has been put on hold for some time, and SHINee has also been banned from full-time activities, with Minho joining the Marine Corps on April 15, the Military Band on March 4, and Onyu joining active duty in December 2018, and has already been deviated from the line.
EXO and SHINee are expected to attract attention to the individual and unit activities of the remaining members. Chinese member Ray resumed his activities with 'Honey' on the 14th, Chan Yeol and Sehun are preparing for the new song in July with a unit and Baek Hyun solo. Taemin is also solidifying his position by successfully completing the Arena tour with solo in Japan.
While EXO and SHINee enteRED the military pause, Super Junior ended up in the military life of all members with the cancellation of the youngest Cho Kyuhyun. Super Junior is expected to participate in the regular 9th album in the second half of this year by Lee Teuk, Hee Chul, Yesung, Shindong, Siwon, Eunhyuk, Donghae, Ryeowook and Cho Kyuhyun.
In addition, Uno Yunho, BoA and RED Velvet's new album, which confirmed the complete comeback, are also SM Entertainment's main products.
On the other hand, NCT's domestic and overseas all-round activities, the youngest of its agency, were great when we looked at them only in the first half of 2019, which is an evaluation that they properly filled the gaps of senior Singers. NCT 127 has been working on restless activities such as performances, entertainment, and music broadcasts, including its first solo concert in January 2019, the Japan Hall tour in February, and ABC's "Good Morning America" in April. It was the fourth mini album "NCT #127 We Are Superhuman" released in May. It was ranked 11th on the Billboard 200 chart in the first week of release. This record of NCT 127 corresponds to the second ranking of the Billboard 200 chart K pop group ever.
Tencent and CT Group . . Global alliance move 'synergy expectations'
SM Entertainment joined hands with Tencent Music Entertainment in January to sign a strategic partnership, including music distribution and marketing in the China market. As a result, music-related contents of SM Entertainment's Singers such as EXO, TVXQ, Super Junior, SHINee, RED Velvet, and NCT will be distributed through Tencent Music Entertainment and used for marketing.
SM and Tencent's contract is a very anticipated contract in the industry because they can meet the musical influence of SM's main Singers and the tremendous content control in Tencent's China and expect amazing synergy. Tencent Music Entertainment is also consideRED a leader in China's online music industry, with more than 800 million paid users, and is also on the New York stock market in December 2018, alongside Sporty Pie, Apple Music and Amazon Music.
SM Entertainment has already declaRED its entry into Indonesia. SM Entertainment is a CT group that leads media, finance and retail in Indonesia. CT Group was founded in 1987 by Chairman Kai Rul Than, focusing on media, lifestyle, entertainment and financial sectors, and is focused on national broadcasting stations TransTV, Trans 7 (Trans 7) channels, Mega World Bank (Bank Mega), Mega Sharia World Bank (Bank Mega Syariah), Transmart Carrefour It reaches out to four), trans fashion, coffee beans and Baskin Robbins, and already has a huge influence within Indonesia.
SM Entertainment announced plans for four areas of business, including entertainment and content production, comprehensive advertising agency, lifestyle business, and digital, through the signing ceremony of Heads Of Agreement (HOA) to establish a joint venture with CT Group in February following the signing of an MOU to promote joint projects in October 2018. In addition, the company also confirmed plans for collaboration such as SM's entry into Indonesia, the discovery of Indonesia's local Singer, the production of I-POP (Indonesia pop) content, and the announcement of the collaboration soundtrack of Indonesia's Singer Rosa and Super Junior.
Indonesia is also the largest market in ASEAN, with more than 100 million people, nearly half of the population, attracting interest in content consumption.
SM Entertainment's First Half of 2019 Total Account