NetEase Cloud Music has reached a preliminary agreement with SM Entertainment to continue streaming their catalog beyond the January 31st deadline, allowing for extended negotiations between both 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 music streaming market. In 2024, Cloud Music secured notable partnerships with other K-pop companies, including Kakao Entertainment and JYP Entertainment, with some deals featuring exclusive content windows for the Chinese market.

The Chinese streaming market has become increasingly important for K-pop companies, as demonstrated by strong album sales through various platforms and growing streaming numbers. In October 2024, Tencent Music signed a deal with Galaxy Corporation, while Cloud Music and Tencent Music continued their market competition.

While the duration of this temporary extension remains unspecified, both companies are actively working towards a long-term agreement. The outcome of these negotiations will likely impact the broader landscape of K-pop distribution in China's expanding music market.

Related Articles

Previous Articles