SM Entertainment corporate development strategy for the next three years. Presented by the SM CEO at the Kakao shareholders’ meeting. 👑Core focus: Balancing the popularity of “legacy IP” (established groups) and “new IP” (newly debuted groups). Specific Strategies: 1. Continued expansion of the scale of concerts and related merchandise. 2. Diversification of the artist portfolio. An interesting detail here is that SM categorizes its groups into four tiers: — Core IP / Rising IP: Established core groups and those currently on an upward trajectory (aespa, …). 3. Strategic company focus: — For Core IP and Rising IP groups, the primary objective is to rapidly scale up their concert operations—which likely explains why groups like aespa (…) are pushing to perform at major dome venues (such as Kyocera Dome) this year. — For legacy groups, the company’s sole requirement is to maintain their existing fan base; there are no further strategic plans for them. 4. Key overseas target markets by group: 🇨🇳 aespa 🇺🇸 aespa 5. Diversified merchandise formats to drive multiple rounds of monetization: — Album-related merchandise. — Concert-related merchandise. — Event-related merchandise (e.g., offline pop-up stores, calendars). — Photo-based merchandise (e.g., photocards, photobooks, posters). — Light sticks: In the absence of significant growth in the total fan base, revenue from this category is driven by releasing updated versions of light sticks or launching individual light sticks for members who have debuted as soloists. 🔗xhslink.com/o/4DPWttL48Be