the globalization of east asian pop music: sm...

The Globalization of East Asian Pop Music: SM

Entertainment

Dang Trang Thanh Nha

Ageda

• Introduction

• Music Industry in Korea

• Music Consumed Market

• Success Strategy

Dang Trang Thanh Nha – Strategy Management

SM Entertainment

• a South Korean entertainment

company

• established in 1989 by Lee Soo-

Man as SM studio

• one of the largest entertainment

companies in South Korea.

• operates as a record label, talent

agency, music production

company, event management

,concert production company,

and music publishing house

• Revenue 2015 approximately

US$287 million Dang Trang Thanh Nha – Strategy Management

SubsidiariesS.M. Culture & Contents

• SM Entertainment Japan

• SM Entertainment USA

• DreamMaker Entertainment

• SM Entertainment Beijing

• SM Food & Beverage Development

• Galaxia SM

• ALEL Co., Ltd.

• Everysing Japan

• Double K Film&Theatre

• Label SJ

• ScreaM Records

• Dang Trang Thanh Nha – Strategy Management

Timeline

1990s : First generation artists

S.M. kicked off the K-pop phenomenon

2000s: Second generation, the first Korean label

expand oversea market

( focused on Japan, China and US )

2013 to present: Third generation artists , the period

of “unlimited member” ,new digital music channel – SM station

and Electronic Dance Music


Physical sales per Label-Korea

• Receives 300,000 applicants in nine countries every year

• It collaborates with 400 songwriters worldwide and samples some 12,000 songs a year.

Global Record Music Industry Revenue

In 2014, South Korea’s music market hugely increased by 19.2 per cent. This can be compared to that of the U.S. which only increased 2.1 per cent


Record LabelThe big three in Korea

• SM Entertainment:

The richest record label of South Korea

with the revenue about $ 286.9

million.SM house big time group:

Super Junior, EXO and Girl’s

Generation

• YG Entertainment:

The company revenue is $156.3

million. YG houses the trend setters of

Korean pop culture and trends such as

2NE1 and BIG BANG

• JYP Entertainment:

Company revenue is being $48.5

million with powerhouse performers

like 2PM and Got7

Key strategy

• S.M. kicked off the K-pop phenomenon in the 1990s

• “Star factory and Idol system” breeding multi-talented entertainers

• “Global to Local to Global” strategy

• Restructuring the Revenue Channels


Create K-Pop phenomenon

• Lee Soo Man surveyed teenage girls on what they wanted to see in music groups and created the boy H.O.T. and girl group S.E.S.

=> It popularized an upbeat, catchy style of dance music that had been coming into vogue, overtaking the folk, rock and protest songs of yore. It remarked the period of “bands as brands” and K-Pop wave in the Asia market.


“Star factory and Idol system”

• Redefining the relationship between customer and artist

• Training idol become top-notch performers


“Global to Local to Global”

• ImportingWesternizematerial

GLOBAL

• Translate into Korea Pop

culture and performers

LOCAL• Market it- “K-

Pop”-internationally

GLOBAL


Revenue Channels

New

• B-2-BBusiness to Business

Old

• B-2-CBusiness to Customer

2000s: The first country where

digital music sales surpassed

physical sales

Conclusion

• Mark Russell, author of Pop Goes Korea, "S.M. has a very clear niche, and if they want to go beyond that, it's tricky, but I think they'll do very well with what they have.“

• Although K-Pop is so huge popular, today, it also have the dark-side itself.

https://www.youtube.com/watch?v=oBhsdMMvHrY


"Before Lee it was, Music is my life, I don't care if I'm rich or poor.' Now you can love music and

be a millionaire!” - Andrew Salmon August 2013 issue of Forbes Asia


the globalization of east asian pop music: sm...

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