Chinese listeners can still enjoy hits from K-pop acts Aespa, NCT 127, EXO, NCT Dream, and NCT Wish after all, as NetEase Cloud Music has reached a temporary agreement with SM Entertainment to keep the South Korean music giant’s catalog available beyond the January 31 contract deadline.
The development comes after concerns that Chinese listeners would lose access to a significant portion of K-pop content.
Just a day before the announcement on Monday (January 27), NetEase Cloud Music had warned users that SM Entertainment‘s entire music catalog might be removed from the platform due to unsuccessful licensing renewal negotiations.
“NetEase Cloud Music had issued a somber notice to fans warning that SM Entertainment’s unilateral decision to not renew the copyright could result in the removal of all its songs from the streaming service,” the company said.
“NetEase Cloud Music had issued a somber notice to fans warning that SM Entertainment’s unilateral decision to not renew the copyright could result in the removal of all its songs from the streaming service.”
Netease Cloud Music
“The potential loss had sparked heated discussions online, with related hashtags trending on Weibo and other social media platforms, drawing significant public attention.”
While the exact terms of the temporary extension have not been disclosed, it will give both companies additional time to work toward a more comprehensive agreement.
Cloud Music said the “overwhelming support and earnest pleas from fans” played a role in bringing the two companies to the negotiating table.
The two companies’ initial partnership began in 2022 when Cloud Music first secured the rights to distribute SM Entertainment’s music catalog in China. SM Entertainment manages more than 400 artists, including its own trained musicians.
The Chinese company said it remains committed to forging a “longer-term and more stable copyright cooperation” with SM Entertainment.
NetEase Cloud Music’s focus on K-pop content was further demonstrated in October when it struck a deal to give its subscribers in China 30-day exclusive access to releases from Korea’s Kakao Entertainment. Kakao’s music division boasts a library of tens of thousands of tracks from hundreds of artists, among them IU, Jay Park, Kiss of Life, Lee Yong Ji, N.Flying, STAYC, and The BOYZ. The companies didn’t disclose how long the exclusivity feature will run.
Cloud Music first signed a deal with Kakao Entertainment in May 2024.
The company is the second-largest operator of music streaming services in China, next to Tencent Music Entertainment, which operates QQ Music, KuGou, Kuwo and karaoke app WeSing.
In the second quarter of 2024, Cloud Music reported a 26.6% YoY jump in revenue from online music services to RMB 2.6 billion (approx. USD $358.6 million at current exchange rates). As of the end of 2023, paying subscribers stood at 44.12 million, up 15.3% from 2022. By comparison, its rival Tencent Music Entertainment’s subscriber count hit 119 million as of Q3 2024.
Music Business Worldwide
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‘ Some details of this article were extracted from the following source www.musicbusinessworldwide.com ’
