Watch: SM Entertainment Explains The Meaning Behind Their Strategic Partnership With Kakao Entertainment
SM Entertainment (hereafter SM) has released a new YouTube video detailing the meaning behind their strategic partnership with Kakao Entertainment (hereafter Kakao) from the perspective of shareholders and fans.
Earlier on February 22, HYBE released an open letter to fans, artists, employees, and shareholders of SM Entertainment regarding their recent acquisition of Lee Soo Man’s SM Entertainment shares.
Later the same day, SM released a follow-up YouTube video titled “Strategic partnership with Kakao from the perspective of shareholders/fans.” According to the video, SM’s cooperation with Kakao signifies the meeting between the best global contents and the best global platform, and this relationship is an equal and mutual strategic partnership that can generate synergy and create a virtuous cycle. SM also explains, “This is not a meeting between contents and contents, rather it is a meeting between contents and platform. It will maintain the diversity of the entertainment industry while strengthening the business performance of SM and Kakao.”
Below are the five main points of the video:
1. SM and Kakao partnership is closely in line with implementation of SM 3.0.
2. Kakao is the best partner to accomplish the SM 3.0 Multi-Production strategy.
3. Profitability of SM’s IP (intellectual property) will increase leveraging the Kakao platform.
4. SM will successsfully establish a virtuous cycle between IP and platforms with Kakao to achieve successful global expansion.
5. New SM Culture Universe (SMCU) will be built based on Kakao’s technology such as Connectivity Tech, AI (artificial intelligence), and Metaverse.
Watch the full video below: