NetEase Cloud Music has reached a preliminary agreement with SM Entertainment to continue streaming their catalog beyond the January 31st deadline, allowing for extended licensing negotiations between the two companies.

The temporary extension comes after Cloud Music warned last week about a potential non-renewal, which prompted significant fan support on Chinese social media platform Weibo. SM Entertainment maintains a strong presence in China, with over 1.5 million followers on their main Weibo profile and millions more following individual acts like Aespa and Red Velvet.

This development is particularly significant for NetEase Cloud Music, which has been competing intensely with Tencent Music in China's growing K-pop market. In 2024, Cloud Music secured partnerships with major K-pop companies including Kakao Entertainment and JYP Entertainment, while Tencent Music finalized a deal with Galaxy Corporation in October.

The Chinese streaming market has become increasingly important for K-pop artists, offering both streaming and album sales opportunities. The temporary extension ensures SM Entertainment's catalog remains available to Chinese fans while both parties work toward a long-term agreement.

Neither company has disclosed the specific duration of the temporary extension or the terms of a potential new licensing agreement. The outcome of these negotiations will likely have significant implications for the future of K-pop distribution in China's expanding music market.

Related Articles

Previous Articles