KMP Holdings

KMP Holdings, an abbreviation of Korean Music Power, was a South Korean music distribution and content-services company headquartered in Gangnam-gu, Seoul. It opened on March 18, 2010, as a joint venture involving several influential entertainment companies, including S.M. Entertainment, YG Entertainment, JYP Entertainment, and Star Empire Entertainment, together with Media Line, CAN Entertainment, and Music Factory Entertainment. The venture was created at a time when South Korea's recorded-music market was increasingly shaped by digital services and by a small number of powerful distribution companies. KMP's principal role was to act as an official distributor for releases from its participating companies and other affiliated content providers. Its business covered both physical album distribution and digital music distribution in domestic and foreign markets. It also described itself as a broader service platform rather than only a conventional wholesaler. Its stated areas included music-content investment, content production and management, concerts and awards, new-media and social-media activities, and merchandising. The company was associated with an effort to provide entertainment companies with a more commercially favorable and coordinated music-distribution system. Contemporary descriptions presented KMP as a potential challenger to the concentration of Korean music distribution in Mnet Media and LOEN Entertainment. Its founding structure gave participating labels a shared distribution vehicle, while its business scope connected recorded music with online services, media production, live events, and related commercial rights. KMP's distribution network included South Korean companies such as S.M. Entertainment, YG Entertainment, JYP Entertainment, Star Empire Entertainment, Media Line, CAN Entertainment, Music Factory Entertainment, GM Contents Media, Fair Music, GraceJ, Afrodino World, Trophy Entertainment, and iMBC for releases associated with the program Infinite Challenge. The network also included Japanese companies such as Avex Group and Johnny & Associates. Distribution relationships varied by company and release; for example, Star Empire's Nine Muses releases were excluded from the KMP arrangement identified in the reference material. Songwriter and producer Kim Chang-whan, who represented Media Line, served as chief executive officer. KMP later became part of KT Music's music-content business. KT Music, the music-content arm of KT Corporation, acquired KMP in November 2012. In mid-June 2013, KT Music absorbed KMP's distribution network, effectively ending KMP's independent role as a distribution platform. Before that transition, the company received the Best Music Distribution Company (Offline Music) award at the second Gaon Chart K-Pop Awards on February 2, 2013. KMP is therefore best understood as a short-lived industry consortium and distribution brand whose principal legacy was the coordination of physical and digital music distribution among participating Korean entertainment companies.

KMP Holdings was launched in Seoul on March 18, 2010, under the name Korean Music Power. It was organized as a joint venture by a group of Korean entertainment companies that included S.M. Entertainment, YG Entertainment, JYP Entertainment, Star Empire Entertainment, Media Line, CAN Entertainment, and Music Factory Entertainment. The structure brought together companies that otherwise operated as separate labels and content businesses, giving them a shared vehicle for distributing recorded music. The company emerged during a period in which the Korean music business was moving between physical albums and rapidly expanding digital channels. KMP's operating model covered both sides of that market. It distributed physical music albums and provided domestic and international digital distribution. The company also presented a wider portfolio of music and media services, including investment in music content, content production and management, concerts and award events, new-media and social-media activities, and merchandising. KMP's purpose was not limited to handling logistics. It was described as a service platform intended to support a more reasonable digital music system for participating companies. Its formation was also viewed as an attempt to challenge the influence of Mnet Media and LOEN Entertainment, which were described as dominant forces in Korean music distribution. By pooling releases from multiple entertainment companies, KMP could provide a common distribution network while allowing the participating labels to retain their own identities. The company's network extended beyond its original founding group. Korean participants and affiliated distributors included Afrodino World, Fair Music, GM Contents Media, GraceJ, iMBC for releases connected with Infinite Challenge, and Trophy Entertainment. The network also included Japanese companies such as Avex Group and Johnny & Associates. The arrangement was not uniform across every artist or release. Star Empire Entertainment was included, for example, while Nine Muses releases were identified as being distributed by LOEN Entertainment instead. Kim Chang-whan, a songwriter and producer representing Media Line, served as KMP's chief executive officer. During its independent period, the company gained industry recognition at the second Gaon Chart K-Pop Awards, held on February 2, 2013, where it received the award for Best Music Distribution Company (Offline Music). The award reflected KMP's role in the physical-album side of the Korean recorded-music market. KMP's independent existence was relatively brief. KT Music, the music-content arm of KT Corporation, acquired the company in November 2012. In mid-June 2013, KT Music absorbed KMP's distribution network. This transaction and subsequent integration brought KMP's separate distribution-platform phase to an end. KMP is consequently best classified as a defunct South Korean music-distribution and content-services brand, remembered for creating a multi-label distribution consortium and for connecting physical distribution with digital music, media, events, and merchandising.

• 2013

  Offline distribution award

  [1]KMP Holdingsen.wikipedia.org

  KMP receives the Best Music Distribution Company (Offline Music) award at the second Gaon Chart K-Pop Awards on February 2.

• 2013

  Distribution network absorbed by KT Music

  [1]KMP Holdingsen.wikipedia.org

  KT Music absorbs KMP's distribution network in mid-June, ending KMP's independent operating role.

• 2012

  Acquisition by KT Music

  [1]KMP Holdingsen.wikipedia.org

  KT Music acquires KMP Holdings in November.

• 2010

  KMP Holdings opens in Seoul

  [1]KMP Holdingsen.wikipedia.org

  KMP Holdings, also known as Korean Music Power, opens on March 18 as a joint venture of several Korean entertainment companies.

A shared distribution and content-services platform created by Korean entertainment companies, positioned as an alternative to the concentrated distribution structure associated with Mnet Media and LOEN Entertainment.

• Music distribution · 2010

  Physical music album distribution

  KMP distributed physical music albums for participating Korean entertainment companies and affiliated content providers. This offline-distribution function was central to the company's operating identity and was later recognized by the Gaon Chart K-Pop Awards.

• Digital music services · 2010

  Digital music distribution

  The company handled digital music distribution in South Korea and foreign markets. Its digital role formed part of KMP's broader objective of providing a shared and more commercially reasonable music-distribution platform.

• Content services · 2010

  Music content and media services

  KMP's stated business scope included investment in music content, production and management, concerts and awards, new-media and social-media business, and merchandising. These activities complemented its core distribution network.

• 2013

  Integrate the KMP distribution networkStrategy

  Background

  Following KT Music's acquisition, the separate KMP distribution structure was consolidated.

  Action taken

  KT Music absorbed KMP's distribution network in mid-June.

  Aftermath

  KMP ceased to operate as an independent distribution platform.

  Source

• 2012

  Sell KMP Holdings to KT MusicM&A

  Background

  KT Music, KT Corporation's music-content arm, expanded its position in music content and distribution.

  Action taken

  KT Music acquired KMP Holdings in November.

  Aftermath

  The acquisition was followed by the integration of KMP's distribution network into KT Music.

  Source

• 2010

  Create a shared multi-label distribution platformStrategy

  Background

  Several Korean entertainment companies sought a coordinated distribution structure spanning physical albums, digital music, and related content services.

  Action taken

  The companies established KMP Holdings as a joint venture under the Korean Music Power name.

  Aftermath

  KMP operated as a common distribution vehicle and was regarded as a possible challenger to the market influence of Mnet Media and LOEN Entertainment.

  Source

1. 1KMP Holdingsen.wikipedia.org