Key Takeaways
- SM Entertainment has unveiled its new growth blueprint, "SM NEXT 3.0", which includes changes to its structure systems, expanded global IP strategy, AI integration, and the introduction of a new boy group
- The company will adopt a "Multi-Creative" structure that places people and artists at the core of its creative ecosystem
- SM Entertainment will introduce a new boy group this year, which will debut through the variety program "Reply High School"
- The company will strengthen its global A&R infrastructure by collaborating with its music publishing subsidiary, KMR, and integrating AI features to analyze songs and recommend them to each artist
- SM Entertainment will continue to protect its artists through its reporting service, KWANGYA 119, and provide quarterly updates to fans about its legal actions
Introduction to SM NEXT 3.0
SM Entertainment, one of the leading entertainment companies in South Korea, has unveiled its new growth blueprint, "SM NEXT 3.0", as it celebrates its 30th anniversary. The company, which is home to popular K-pop acts like SHINee, EXO, NCT, aespa, and RIIZE, has outlined several major plans to evolve its established "SM 3.0" system. The new system, which will be implemented over the next few years, aims to place people and artists at the core of its creative ecosystem. This move is expected to provide artists with more opportunities to participate in the creative process and allow for more flexible and project-optimized creative lineups.
The Multi-Creative Structure
The "Multi-Creative" structure is a key component of SM NEXT 3.0, and it aims to achieve growth and transformation simultaneously. According to Co-CEO Dmitry YJ Tak, "By placing artists at the center and flexibly assigning the most optimal creative teams, we aim to achieve growth and transformation simultaneously." This structure will allow artists to work with different creative teams and explore new artistic languages, rather than operating within a fixed production hierarchy. The company believes that this approach will enable artists to realize their full potential and produce high-quality content.
New Boy Group and Global IP Strategy
SM Entertainment has officially confirmed that a new boy group will debut this year, and it will be introduced progressively through the variety program "Reply High School". The potential candidates will include SMTR25 trainees, and the group is expected to be a key part of the company’s global IP strategy. The company will work with partners in China, Thailand, and Japan to strengthen its presence in these markets while maintaining its "creative identity". This move is expected to help SM Entertainment expand its global reach and increase its competitiveness in the K-pop industry.
A&R Infrastructure and AI Integration
SM Entertainment will also strengthen its global A&R infrastructure by collaborating with its music publishing subsidiary, KMR. KMR has maintained several exclusive and sub-publishing agreements with more than 370 composers worldwide, and it has a core K-pop catalog of over 7,000 songs. The company plans to upgrade its A&R systems by integrating AI features to analyze songs and recommend them to each artist. According to Co-CEO Daniel Jang, "We see strong potential for meaningful synergy at the intersection of a rapidly evolving K-pop landscape and AI." The company will also pursue M&A opportunities within music and related industries to accelerate growth.
Artist Protection and Fan Experiences
SM Entertainment is committed to protecting its artists and providing them with a safe and supportive environment. The company will continue its reporting service, KWANGYA 119, which has received approximately 300,000 reports and a reported 99.8% response rate. The company will also provide quarterly updates to fans about its legal actions to protect its artists from false rumors and malicious attacks. In addition, SM Entertainment will expand fan experiences across concerts, merchandise, and communications, providing fans with more opportunities to engage with their favorite artists and experience their universe.
Conclusion
In conclusion, SM Entertainment’s new growth blueprint, "SM NEXT 3.0", represents a significant step forward for the company as it continues to evolve and expand its presence in the K-pop industry. The company’s commitment to placing people and artists at the core of its creative ecosystem, combined with its expanded global IP strategy, AI integration, and focus on artist protection and fan experiences, is expected to drive growth and transformation in the years to come. As Co-CEOs Jang and Tak emphasized, "Through disciplined, sustainable growth alongside bold, forward-looking investments, we will continue to shape the future of the global entertainment market."
