Sony Music Entertainment Hong Kong, a subsidiary, has signed an agreement for it with Yeah1, but its value and acquisition date were not disclosed.
A boy band, established by Yeah1, performs at a music event. Photo by VnExpress/Tung Quynh |
The deal allows Sony Music, the second largest music company in the world behind Universal Music, to control 1Label, a company that produces and distributes music, and its subsidiary 1Talents which manages artists.
Both companies play a key role in the operations of Yeah1.
Sony Music, which has a presence in more than 100 countries, is known as the company that invented the flat vinyl record. It is also renowned for nurturing many top artists and producing influential recordings.
Yeah1 said the investment from Sony Music would provide financial backing for its ecosystem.
Founded in 2006, Yeah1 grew during Vietnam’s early internet boom to become one of the country’s largest integrated digital media groups.
By the end of 2024 it had more than 240 channels on Facebook, YouTube, TikTok, and Dailymotion with over 300 million subscribers.
Its flagship reality shows such as “Sisters Who Make Waves” and “Call Me by Fire” became major hits in the domestic market, attracting thousands of young Vietnamese fans.
It posted after-tax profit of more than VND122.5 billion (US$4.6 million) in 2024, a 4.6-fold increase from 2023, with more than 80% of its revenues coming from advertising.
Speaking to VnExpress in October, CEO Ngo Thi Van Hanh said advertising revenues are important but highly volatile.
The company is seeking to reduce this dependence, including by expanding into artist training and management through the launch of a boy band.
The management expects revenues not only from in-show advertising but also from concerts, music releases, international licensing, artist-linked advertising and commercial image exploitation.
They hope to build a roster of artists capable of long-term careers, generating economic value and a loyal audience for the company’s ecosystem.
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