SM Entertainment has shared that they are planning to debut four new artists in 2023 as part of their new artist production and IP strategy.
In the video explaining the move from SM Entertainment 2.0 to SM Entertainment 3.0, the company explained how they will be moving to a new strategy that will allow them to produce more music and artists at one time. By transitioning from one executive producer to 5 separate “centers”, each center is able to focus on a separate project that will allow SM Entertainment to more quickly produce and release content for their artists.
They explained how they will establish a subsidiary company dedicated to music publishing and production. This includes composing, lyrics, and distributing royalties. This will merge SM’s already established in-house music production company and their network of over 3,000 producers, songwriters, and lyricists all into one company. This is to help the company streamline the production process and make it easier for the company to communicate with all aspects of the production process.
Next, it was mentioned that SM Entertainment would be transitioning into a multi production center system. Currently, SM Entertainment debuts a new group once every 3.5 years on average, releases on average of 31 albums per year, and suffers from around a 25% delay rate in releasing their contents.
However with SM 3.0, the company plans to debut at least 2 new groups each year, increase the number of total albums released to over 40, and reduce their delay rate on contents to under 5%. With this plan comes their plans for 2023.
Their 2023 goals (as indicated on the right side of the picture in the red box) are as follows:
- Debut 3 new groups and 1 solo debut, which is the virtual artist.
- Scheduled to release a total of 41 albums in 2023
- Yearly total album sales of 18 million.
Also shown was some more specifics on the new groups SM Entertainment would debut. These debuts include a new girl group, a new virtual artist, NCT’s Tokyo subunit, and a new boy group. In the first quarter of 2023, SM plans to release 7 albums, with 12 in the 2nd quarter, 12 in the 3rd quarter, and 10 in the 4th quarter.
SM Entertainment is also working on increasing transparency between the company and the fans, vowing to share the schedule for their new artist debuts, album releases, and upcoming concerts every quarter.
Watch SM Entertainment’s explanation of their new business strategy below.
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