SM Leisure continues its public denouncement of HYBE Labels‘ “hostile” takeover of the famend leisure firm, this time in a proper video uploaded to their official YouTube channel.
In contrast to their previous public addresses, the video has been uploaded with content material and subtitles in English to instantly deal with and attain extra international followers.
SM Leisure’s Co-CEO Lee Sung Soo lately launched a scathing public deal with wherein he referred to as out his uncle-in-law, SM Leisure’s founder Lee Soo Man, and requested that he beg for forgiveness after he bought nearly all of his shares to HYBE Labels and introduced he was suing SM.
Trainer. Please cease now. Please now, kneel in entrance of everybody and ask for his or her forgiveness, together with me. I hope you realize that that is the one means that I, as your scholar, can prevent from the Valley of Hell. Now, come out of that place, escape from the group of eunuchs, undergo your KWANGYA, and return to your loved ones as soon as extra. And what you’ve all the time preached, “Be Humble, Be Form, Be the Love,” I’ll pray collectively that you would be able to put this into motion for the remainder of your life.
— Lee Sung Soo
Now, SM Leisure’s CFO Cheol Hyuk Jang joins the dialogue, releasing his personal video explaining the dreaded detrimental results of HYBE’s takeover.
The video outlines the explanations SM Leisure is towards HYBE’s acquisition, and Cheol Hyuk Jang highlights three main impacts it might have on SM Leisure and its artists.
1. Neglect of SM Leisure artists
Contemplating the vary of artists at present below HYBE Labels and the decided “optimum [album] launch instances” being round 100 instances per yr, SM Leisure fears that their artists’ releases will develop into a decrease precedence.
SM Leisure at present manages 17 musical teams, together with its subsidiary labels’ artists and virtually 20 particular person artists.
In distinction, HYBE Labels manages seven musical teams and ten solo artists, not together with artists below HYBE America or HYBE Japan.
2. Abandoning SM Leisure’s artist-to-fan communication platform
SM Leisure fashioned Expensive U below their subsidiary SM Studios in 2017. Expensive U (previously often called Everysing) was SM Leisure’s go-to platform for his or her artists’ content material and fan-to-idol communication via the favored app Expensive U. Bubble, which requires a month-to-month paid subscription to entry messages from its related artists.
JYP Leisure grew to become the proprietor of a 23.3% share in Expensive U in 2021, integrating its artists onto the platform in order that it now housed artists from two of the highest leisure corporations in Korea.
JYP Leisure and SM Leisure additionally joined forces to create Past LIVE Company, which grew to become the primary firm to concentrate on on-line live shows.
HYBE Company created its standard fan-to-idol communication and content material platform in 2019, Weverse. In 2022, it merged with V LIVE, which was a live-streaming platform fashioned by Naver Company in 2015.
Since its launch in 2019, Weverse has seen explosive development and has confirmed the wants and the affect of fan group platforms within the international music market.
We now have excessive expectations for the synergy that will probably be created between Weverse and V Dwell via our full-scale collaboration with Naver. Primarily based on this, we’ll create an unmatched fan group platform within the international market.
We’ll obtain the manpower and expertise from V Dwell, and a brand new platform will probably be reborn after a few yr of service integration and preparation
— BIGHIT Music
In comparison with Expensive U. Bubble, Weverse customers can join and look at artist pages without cost, with choose content material accessible through a paid subscription.
Cheol Hyuk Jang shared that SM Leisure fears they’ll lose their distinctive channel of monitoring fan utilization to set targets and proceed planning for SM Leisure’s development and growth if their artists additionally combine into the Weverse platform.
Such a platform will merely enhance some licensing income, however not be correctly mirrored within the company worth. In consequence, SM will lose a brand new development engine by lacking out on the information that may assist deepen understanding on the followers.
— Cheol Hyuk Jang
3. Decrease precedence for brand new enterprise alternatives
As SM Leisure has grown to develop into a self-sustaining enterprise over time as a “file label, expertise company, music manufacturing firm, occasion administration and live performance manufacturing firm, and music publishing home,” the corporate fears it is going to lose the chance to proceed to strive new ventures and develop. Particularly, they really feel that such alternatives will probably be allotted to HYBE Company first.
Lastly, new enterprise alternatives which may assist [SM 3.0’s strategy] will probably be extremely prone to be allotted to HYBE’s wholly-owned subsidiary.
— Cheol Hyuk Jang
Earlier than HYBE grew to become the bulk shareholder of SM Leisure, SM was planning their newest enterprise, SM 3.0, which they teased earlier this month.
SM Leisure’s Co-CEO beforehand shared throughout their SM 3.0 announcement that the IP (mental property) manufacturing was solely below the course of Lee Soo Man whereas he was SM Leisure’s govt producer.
Throughout the SM 1.0 and SM 2.0, we had a sole govt producer system and produced SM artist IP below the course of the manager producer, Soo Man Lee, whereas the manufacturing and core capabilities have been concentrated in a single place. On this interval, we used an exterior publishing firm for music sourcing.
— SM Leisure Co-CEO Lee Sung Soo
Mental property contains patents, copyrights, emblems, and commerce secrets and techniques. With SM 3.0’s new course, the present administrators hoped to “speed up the velocity of IP manufacturing” by getting a couple of individual concerned within the course of. It additionally hoped to “broaden the manufacturing capability” of the corporate.
The Multi ‘Manufacturing Middle/Label’ system of SM 3.0 will broaden the manufacturing capability and speed up the velocity of IP manufacturing by delegating the decision-making authority to every unit chief via impartial artist administration and advance the SM Customary whereas sustaining the know-how on IP manufacturing and administration collected from the prevailing system.
— SM Leisure Co-CEO Lee Sung Soo
SM Leisure’s CFO continued to listing issues about HYBE’s takeover and what SM vows to do to guard the corporate.
Try extra on that within the article under:
SM Leisure Releases Video Denouncing HYBE’s Takeover Of The Firm, Vows To Defend SM As It Is