It’s been a long time coming, but it’s now far too obvious for people to ignore. SM C&C is likely to be the center of attention in the Korean entertainment industry for the foreseeable future, whether it is successful or not.
The way that SM C&C is moving and the rhetoric coming from SM Entertainment HQ itself, sounds like SM Entertainment has plans on building a media empire on the scale of which Asia has never seen before.
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What is SM C&C?
- Subsidiary of SM Entertainment which was incorporated in April 2012, also known as SM Culture & Content.
- Imagine all the things that SM Entertainment does – almost all the stranger things not strictly related to music like making dramas, managing MCs and actors, being involved in musicals, travel agency etc. is done with SM C&C.
- It has now absorbed Woollim Entertainment, taking in Infinite, Nell and Tasty… and created the “Woollim Label” brand.
- SM C&C manages MCs and comedians, including Kang Hodong, Shin Dongyup, Lee Soogeun.
- SM C&C manages actors like Kim Sooro, Kim Haneul, Jang Dong-gun.
What’s happened recently?
- After acquiring Woollim Label, a few smaller companies did not deny that they had discussions with SM about doing the same as Woollim Entertainment.
- SM Entertainment may absorb SISTAR’s Starship, MBLAQ’s J.Tune, B1A4’s WM Entertainment.
- The main competitors have not responded or cannot respond to the recent M&A movements in the short-term.
- Infinite’s World Tour is targeting 250,000 attendees.
- Despite low ratings domestically, SM managed to sell “To the Beautiful You” for $6.5m internationally.
- It’s apparent that SM have managed to gather the ingredients to launch a series of self-produced variety shows and drama, as well as film.
What’s going to happen?
- In the next 18 months, SM C&C will be focusing heavily on recently acquired talent from Woollim and also in drama production.
- SM have a 4-part drama and two miniseries to be planned in the next 12 months.
- Woollim’s current CEO will remain exactly where he is.
- Woollim Label is likely to be the first of many labels that offer more diverse sounds from SM than the usual SM brand of production.
- Smaller companies may join SM Entertainment, but only after seeing what SM does with the Woollim Label; with Starship, WM Entertainment and J.Tune being the most likely to move first.
- Woollim Label will likely be used to target international markets.
- SM will continue to focus more on China and SE Asia than YG Entertainment does.
- Infinite will become a priority project for Woollim Label, as the most profitable IP in the brand – more international concerts and more variety show appearances.
- More SM idols will appear in drama and film.
- SM C&C has a forecasted growth in revenue and operating profit of 52% and a staggering 177% respectively in 2014
To quote SM, “SM Entertainment will run its global music distribution and additional businesses while SM C&C will take charge of the label’s functions. In terms of business structure and scale, we will acquire international competitiveness and will stand as Asia’s premier music group which can compete with global major music groups. We will take our place as the first global major music group in Korea.”