SM, JYP, And Big Hit To Launch Joint Music Enterprise
SM Entertainment, JYP Entertainment, and Big Hit Entertainment will be collaborating for a joint business.
The three entertainment agencies along with SK Telecom held an agreement ceremony on January 31 to launch their collaboration for B2B (business-to-business) music distribution and a B2C (business-to-consumer) music service platform.
The agreement was carried forward to establish a virtuous cycle for contents creation and production, create a more efficient and industry-friendly ecosystem, and offer a new and different music service that uses technologies like AI and blockchain.
Beginning on February 1, the B2B distribution of SM, JYP, and Big Hit’s album and digital music contents will be done through SK Telecom subsidiary iriver. Different from the traditional distribution system, the three agencies will actively participate in the distribution process, establish policies for the supply and distribution of contents, and work on internalizing the system.
This aims to help the development of businesses and the industry in the long-run. They will also consider blockchain technology for the protection of music copyrights and increased transparency of transaction records.
Only the three entertainment agencies will participate in this partnership for now, but as the system is tested out and improved, it is expected to slowly expand throughout the year with other agencies who are interested.
The agreement ceremony on January 31 at SK Telecom headquarters was attended by SM Entertainment’s Kim Young Min and CEO Han Se Min, JYP Entertainment’s CEO Jung Wook, Big Hit Entertainment’s CEO Bang Shi Hyuk, and SK Telecom’s No Jong Won.