SM Entertainment Establishes Subsidiary 'SM Studios' for Non-Music Projects
SM Entertainment has established a new subsidiary, "SM Studios," dedicated for non-music projects.
Continue reading to know more.
SM Entertainment Establishes "SM Studios"
SM Entertainment is promoting a restructuring of its affiliates in order to focus more on its music business and promote efficiency in its overall business structure.
On April 5, SM Entertainment announced the establishment of subsidiary that is wholly owned by the company, "SM Studios." All of SM Entertainment's shares in SM C&C, SM Life Design Group, Dear U, Key East and Mystic Story will be invested into the new subsidiary, making SM Studios the managing subsidiary.
SM C&C is an affiliate that produces and distributes advertising and video contents. Key East is a management agency for actors and actresses, as well as a drama production company. Dear U developes mobile applications and deals with its operations. Mystic Story is a management company for actors and actresses, and musicians, as well as produce video content.
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SM Studios is a new subsidiary that aims to promote the efficiency of group business and management through a more responsible management system, and is expected to secure its competitiveness in the market as affiliates related to the Studios have a collective bargaining power when it comes to the management of drama, entertainment, and new media sectors.
SM Enterainment explained that they plan to focus more on the music business, which is the original business of the company.
SM Entertainment Records Sluggish Earnings in 2020
In 2020, SM Entertainment recorded sluggish earnings, with a consolidated sales of 579.9 billion won ($515.7 million), a 11.8 percent decrease from the previous year. The company's operating profit had a decrease of 83.9 percent compared to the previous year as well, with only a profit of 6.5 billion won ($5.7 million).
With the establishment of the subsidiary, "SM Studios," the company aims to increase its sales and profit this year.
In addition, by investing in 5 billion won ($4.4 million) into the subsidiary, SM Entertainment will acquire 190,648 shares of SM Studios for around 244.6 billion won ($217.5 million) and will have 100 percent at stake. SM Entertainment is expected to acquire the stocks on June 4, 2021.
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SM Entertainment Donates EXO and Yoo Jae Suk's Collaboration Track "Dancing King" Profits
SM Entertainment donated the proceeds of EXO and Yoo Jae Suk's 2016 collaboration, "Dancing King," to charity.
SM Entertainment donated 32 million won ($28.4 thousand) from the profits of EXO and Yoo Jae Suk's SM Station collaboration, "Dancing King," to The Beautiful Foundation that aims to help young adults become self-supporting.
The company has been using the profits from the collaboration for support projects such as giving music education to children and adolescents and helping adolescents on the street.
With their donation to The Beautiful Foundation, the company planned to work with the organization to produce fashionable bags that contain messages to raise awareness on adolescents released from institutional care.
What are your thoughts on the SM Entertainment's restructuring?
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Written by Robyn Joan
