Moving beyond traditional music distribution, the collaboration spans the co-creation of a new idol group targeting the Asian market, expansive intellectual property (IP) ventures, and localized concert initiatives. The alliance gained momentum after TME recently acquired a significant stake in SM from HYBE, positioning TME as a key shareholder.
The partnership leverages SM’s expertise in global IP development and content creation with TME’s vast user base and robust distribution infrastructure. This synergy is poised to generate substantial impact across Asia while bolstering both companies’ competitive edge.
A cornerstone of the deal is the joint development of a China-based idol group, set to debut within the next two to three years. SM will oversee casting, training, and production, while TME will handle local promotions, album releases, and music distribution. The goal is to cultivate an idol group that resonates across Asia.
In the IP realm, the duo plans to roll out physical and digital photocards, character merchandise, pop-up stores, and video content tailored for the Chinese market. On the live performance front, the collaboration includes SMTOWN LIVE in Hong Kong in 2026 and support for SM artists’ regional tours. Additionally, SM’s Beyond LIVE technology will power livestreaming services to engage online fans globally.
This strategic partnership marks a pivotal step for SM to amplify its global influence and solidify its foothold in China. By combining strengths, SM and TME aim to pioneer new business models and cement their dominance in the global entertainment landscape.
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