According to a brand new assertion from each firms, JYP Entertainment has now acquired a stake in SM Entertainment‘s subsidiary service, DEAR U.
DEAR U is a cellular software improvement and IT operations firm below SM Entertainment’s new subsidiary, SM Studios—which additionally homes Mystic Story, SM C&C, and extra. One of DEAR U’s first choices was the LYSN fanclub app for SM Entertainment artists, however LYSN wasn’t initially obtained in addition to supposed. In truth, the applying was quickly dubbed “one of SM Entertainment’s biggest money-draining affiliates.”
Thankfully, DEAR U was capable of finding its method once more in 2020 when the corporate launched the well-known DEAR U Bubble service, which permits followers to speak immediately with their idols via a non-public messaging system. While DEAR U Bubble was initially launched solely with SM Entertainment artists, the service has since expanded to a number of Ok-Pop companies—together with JYP Entertainment.
Now, JYP Entertainment is biting off a much bigger slice of the DEAR U pie. The Financial Supervisory Service reviews that JYP Entertainment has change into the proprietor of a 23.3% share of DEAR U. JYP Entertainment purchased 9.1% of the shares final month, buying the remaining 14.2% this week.
In whole, your complete stake was bought for ₩21.4 billion KRW (about $19.2 million USD).
In the primary quarter of 2021 alone, DEAR U has generated ₩8.90 billion KRW (about $7.97 million USD) in gross sales, accumulating an working revenue of ₩3.20 billion KRW (about $2.87 million USD).
While DEAR U reached ₩4.20 billion KRW (about $3.76 million USD) in gross sales again within the second quarter of 2020, this 12 months marks the primary time the service has generated a revenue—and a considerable one at that.
As such, it’s no shock that JYP Entertainment sees it as a worthwhile funding. TWICE, ITZY, Stray Kids, and extra are at present all a part of the DEAR U Bubble service. Now, an company consultant states, “JYP Entertainment will invest more in IT platforms that allow fans to become closer to our artists.”
This isn’t the primary time JYP Entertainment has partnered up with SM Entertainment in recent times. Back in August 2020, the 2 firms launched the Beyond LIVE Corporation collectively—the primary firm specializing in on-line concert events. Beyond LIVE concert events are mentioned to mix SM Entertainment’s producing expertise with JYP Entertainment’s world community and augmented actuality know-how from Naver.
The first Beyond LIVE live performance with SuperM generated roughly $2 million USD in income.