SM plans to integrate all of fan platforms into one super app, “The consolidated platform will be operated as a ‘space for fans’”

SM Entertainment announced “SM 3.0: IP Monetization Strategy”.

On February 21st, SM released a video titled “SM 3.0: IP Monetization Strategy” on its official Youtube channel. Through the video, CFO Jang Cheol Hyuk explained their plan for their “fan platform” business.

CFO Jang said, “We will immediately embark on internalization of consolidation of the fan platform”.

Digital touch points for SM fans are distributed across a total of 9 mobile platforms, including the official apps, KWANGYA Club and &STORE. 

Since the current structure has several apps that are not integrated by function and are operated by different parties, it is difficult to concentrate the competitiveness of the platforms in one place. 

In this regard, CFO Jang emphasized, “Under SM 3.0, we consider the establishment of a consolidated platform that optimizes fan experience as one of the top priorities in addition to the improvement of corporate governance”.

It means that SM Entertainment’s headquarters will directly develop and operate an integrated platform equipped with fan community, content, and commerce functions.

Director Jang added, “We will actively reflect fan data, which is expanding qualitatively and quantitatively thanks to the gathering of fandoms, on the fan platform.”

At the end of the video, director Jang said, “The new IP monetization strategy in SM 3.0, including the resolution of SM 2.0 problems explained today, is a strong growth engine for SM. By combining the effect of the investment strategy to be announced soon with the promotion of the IP monetization strategy, SM will achieve 1.2 trillion won in sales and 35% operating profit in 2025, and will grow into a leading company in all aspects of the K-pop industry.”

He added, “All SM executives and staff members, including myself, will do our best to keep the promise with shareholders announced this time.”

Source: Insight.