Cube Entertainment has joined hands with Kakao Entertainment.
Cube Entertainment announced on December 21 that it has signed a contract with Kakao Entertainment, the largest comprehensive content company in Korea, to distribute records and content in advance.
The total contract amount is 80 billion won ($62,000,000) (including VAT). This exceeds Cube Entertainment’s sales of 72 billion won ($55,000,000) last year, which is more than 430 percent of last year’s sales of about 15 billion won ($11,000,000).
The deal will secure 50 billion won ($38,000,000) by January next year. After that, an additional 30 billion won ($23,000,000) will be paid in advance depending on the sales situation.
Cube Entertainment said,
“The large-scale contract signed with Kakao Entertainment has raised the status of Cube Entertainment, which is evaluated in the market. The actual contract period is five years, but internally, there is no problem in offsetting all advance payments with sales early as it is expected to have the highest performance in the music and music sectors due to the performance of (G)I-DLE and other artists this year. In addition, the inflow of cash through this contract has allowed us to secure liquidity and seek additional investment opportunities. Based on the secured funds, we have laid the foundation for flexible response to the rapidly changing industrial environment in conjunction with the recent signs of lifting the Korean restriction and China’s re-opening, and have enough room to invest and support new artists as well as existing artists. In addition, through this contract, synergy is expected through additional collaboration between Cube Entertainment and Kakao Entertainment, the nation’s largest content distribution platform.”
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