The capital of the joint venture to be based in Japan is a total 10 billion won, with CJ E&M holding 51 percent of its equity and Victor Entertainment 49 percent.
CJ and Victor will combine their business infrastructures for CJ Victor Entertainment. They will carry out related tasks ranging from artist management, event management, merchandise development and fan clubs to content distribution, concert planning and overseas activities. CJ Victor Entertainment will be CJ E&M’s global label.
|Victor Entertainment vice president Nobuhiko Yonemitsu (left) and head of CJ E&M’s music division Ahn Suk-joon. (CJ E&M)|
As a subsidiary of the multinational electronics giant JVC Kenwood, Victor Entertainment has produced and distributed music locally for 87 years. It currently owns 23 labels under its name.
The joint venture marks the first time that two major music labels from Korea and Japan have joined hands to spur their global business.
“In order for Hallyu to expand and sustain itself overseas, it’s important to move away from simply relying on individual artists’ activities toward building a stable system with foreign companies,” CJ E&M’s head of music Ahn Suk-joon said in a joint press meeting on Monday.
“Given that the offline music market remains strong and profitable in Japan, there have not been many attempts to train Japanese acts with a focus on overseas markets,” said vice president of Victor Entertainment Nobuhiko Yonemitsu.
In June, CJ Victor Entertainment will first launch Korean artists in Japan and then release new albums featuring Japanese pop singers and bands.
Starting from early 2015, the joint venture will focus on sending artists to international stages as well as developing new “Asian” stars.
By Sohn Ji-young (firstname.lastname@example.org)