SM Entertainment and Naver have heightened their ties through investments.
It was previously reported that the two companies had signed a Memorandum Of Understanding (MOU) for a partnership gearing for expansion in the global Entertainment Business. On April 13, Naver said that they would join hands with SM Entertainment with their most influential artists to accelerate further their efforts to tap the global market.
SM Entertainment shared on August 3 that it has secured 100 billion won (approximately $83.8 million) investment from Naver. The venture is intended for SM’s subsidiaries SMEJ Plus and Mystic Story as well as a content fund to expand their global online concerts, comprehensive fan club service, and a next-generation video content business.
Furthermore, the SM Entertainment plans to merge their fan club service into Naver V Live’s global community membership platform- Fanship and to produce more concerts on the “Beyond LIVE” online concert platform and produce new music-related video content.
Sm Entertainment and Naver will also discuss business collaboration plans for video streaming services that focus on developing the music content in the next generation.
Hang Sung Sook, the Naver CEO, expressed that Naver is gaining a new competitive edge in the contactless digital concert market using advanced live broadcasting and community platform technologies and a paid business model based on big data.
The CEO continued that through their collaboration with SM Entertainment, and after the investment, they will strengthen the competitiveness of Fanship and showcase innovation in the global market.
The co-president of SM Entertainment, Lee Sung Soo, said that they are looking forward to a synergy between the two companies in an era of ontact (online contact). As they have joined hands with Naver- a company with a competitive edge in the contactless content platform business, Sm will be providing the global fans with unique content and open a new era of entertainment.
