SM ENTERTAINMENT JAPAN Co.,Ltd. (4772) Stock Price

Stream Media Corporation operates two main business segments: Entertainment and Rights & Media. In the Entertainment segment, the company provides exclusive artist management for SME artists in Japan, planning and operating concerts, music activities, merchandise sales, and media appearances. The company also supports Japanese activities for Korean artists, operating events, managing fan clubs, and providing mobile distribution services.

In the Rights & Media segment, the company operates paid broadcasting services through its own television station KNTV via CS broadcasting, CATV, and IPTV. KNTV broadcasts Korean dramas, news, K-POP, variety shows, and other content, while also producing television commercials, print advertisements, and original programs. The company partners with Korean entertainment agencies and production companies to acquire broadcasting rights, distribution rights, and merchandising rights, and collaborates with domestic companies to develop these businesses.

As for other operations, the company previously operated a karaoke application business, which has since been discontinued. Through these businesses, Stream Media Corporation provides diverse services in the entertainment and media sectors.

Stream Media Corporation provides media content centered on Korean Wave business while aiming to contribute to society. The company's basic policy is to enhance corporate value by delivering customer-focused services and respecting employee autonomy. In particular, it prioritizes returning profits to stakeholders through securing and expanding revenue.

The company makes swift management decisions in response to market trends in artist activities and drama rights, aiming to improve operating profit. By allocating management resources to high-growth sectors and implementing strategic resource distribution, it seeks to drive sales growth and secure profitability.

Following the 2020 merger with SMEJ, the company expanded its business IP and portfolio. Going forward, it will strengthen artist lineups and IP content business to diversify entertainment operations. From fiscal year 2025 onward, the company aims for further growth through creating original IP and launching new business ventures.

In terms of the operating environment, while facing impacts from foreign exchange fluctuations and rising prices, the domestic concert market is expected to continue growing. K-POP remains highly popular, and demand for Korean content is anticipated. This is expected to increase viewership demand for the company's archived works.

Priority initiatives include improving concert business efficiency and strengthening merchandise sales in the MD business. The company is also scaling up travel business, music business operations, and fan club planning to strengthen its revenue base. It is also developing original IP to enhance the market competitiveness of new artists.

In the Rights & Media business, the company is strengthening acquisition of new content and sales of archived works while promoting rights sales. In response to multi-channel market contraction, it aims to secure profitability through fixed cost reduction.