The Globalization of East Asian Pop Music: SM...
Transcript of 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
Dang Trang Thanh Nha – Strategy Management
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
Dang Trang Thanh Nha – Strategy Management
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
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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.
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“Star factory and Idol system”
• Redefining the relationship between customer and artist
• Training idol become top-notch performers
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“Global to Local to Global”
• ImportingWesternizematerial
GLOBAL
• Translate into Korea Pop
culture and performers
LOCAL• Market it- “K-
Pop”-internationally
GLOBAL
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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
Dang Trang Thanh Nha – Strategy Management
"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
Dang Trang Thanh Nha – Strategy Management