Entertainment (Music) Content to drive blockbuster growth in 2013 SM to top 2012 annual Japanese concert attendance with 1H13 concerts alone We have recently seen a number of indicators suggesting that domestic music firms are remaining resilient despite headwinds from yen depreciation. First, SM Entertainment’s Entertainment Japanese concert attendance (1.37mn based on maximum seating capacities and confirmed tour schedules) for 1H13 is expected to be 1.28 times greater than its 2012 Anchor Report annual figure (1.07mn based on maximum seating capacities). April 16, 2013 Furthermore, SM Entertainment’s dome (i.e., large stadium) concerts as a percentage of total concerts have increased from 46.3% in 2012 to 81.7% in 2013, a positive development given that dome tours tend to generate royalty income (per 10,000 Daewoo Securities Co., Ltd. attendees) twice as high as that of regular concerts (capacity of 40,000-50,000 per Internet/Game/Entertainment concert for dome tours vs. 10,000-15,000 for regular tours). Chang-kwean Kim Also, a number of Chinese concerts were added to 2013 ex-Japan tour schedules for the +822-768-4321 first time. TVXQ is set to hold a concert in Beijing in March, while G-Dragon is scheduled
[email protected] to tour Beijing, Shanghai, and Guangzhou this May. Boy band Super Junior’s 2013 Super Show 5 will include a tour in Latin America, which we expect will draw 200,000 concertgoers. In 2013, we believe the Chinese performance market will begin serving as a medium- to long-term growth driver for Korean music companies (following a pattern seen in many other consumer industries).