SEOUL, Feb.19 (Korea Bizwire) – JYP Entertainment announced that it has signed an agreement with CMC (China Music Corporation), the online music giant, to provide digital music exclusively.
The contract is said to be worth 5.25 billion won, which is around 10 percent of 2014 sales.
JYP officials explained that they signed a contract to exclusively distribute music through CMC for the next five years, until its expiration on February 18, 2021. The companies also plan to establish a legal joint venture to lay out new businesses.
CMC manages music sites such as KUWO, KUGOU, and RAINBOW Century media, as well as digital copyright services. Through the online sites and platforms, CMC has a share of more than 60 percent of the Chinese PC user market, and 40 percent of the mobile market.
JYP representatives said that through the exclusive distribution agreement, the two parties will solve problems related to the digital distribution of music, and boost copyright protection through the distribution of officially released music files.
They added that the two parties will establish a local joint venture to produce content that suits the Chinese market, and move forward with various entertainment businesses that can benefit from synergy between the companies.
By M.H.Lee (firstname.lastname@example.org)