On the morning of October 27, sources said that NetEase Cloud Music is planning to report to the relevant state regulatory authorities complaints South Korea SM company adhere to the exclusive copyright model, refused to open up the music copyright licensing matters, or involved in the use of music copyright to maintain a "two-choice" monopoly state.
Sources said SM ignored the explicit request of Chinese regulators that SM refuse to complete the contract with any platform after the exclusive agreement was legally ordered to be lifted, thereby forcibly continuing a discriminatory music licensing policy and maintaining years of high prepaid profits in China, which is the reason for NetEase's complaint.
As early as 2017, the State Copyright Administration interviewed more than 20 domestic and foreign music companies, the main person in charge, to promote the full authorization of online music, wide dissemination, to avoid granting exclusive copyright to online music service providers.
SM company known as "Asia's first entertainment group", its representative artists are oriental god, girlhood, EXO and so on. In January 2019, Tencent Music exclusively signed SM, bringing together the rights of South Korea's three largest head entertainment companies. In 2018, SM has become one of Tencent's music investors, holding more than 100 million yuan worth of tencent music shares, according to public information.
On July 24th the State Administration of Market Supervision issued a penalty order requiring the companies concerned to lift their exclusive copyrights within 30 days. However, according to the China Youth Daily, the current platform to remove the exclusive copyright of the promotion of the action is relatively limited. After two months of overdue completion of only a small number of exclusive copyright settlement, the domestic music copyright opening process is still facing great obstacles.