NetEase Cloud Music has reached a preliminary agreement with SM Entertainment to continue streaming their catalog beyond the January 31st deadline, as both companies engage in extended negotiations for a long-term licensing deal.

The announcement came after Cloud Music previously warned about a potential non-renewal, which prompted widespread fan support on Chinese social media platform Weibo. SM Entertainment maintains a significant presence in China, with over 1.5 million followers on their main Weibo profile and millions more following individual acts like Aespa and Red Velvet.

This development is particularly significant for China's growing music market, where NetEase Cloud Music has recently secured partnerships with other major K-pop companies, including Kakao Entertainment and JYP Entertainment in 2024. The platform offers both streaming services and album sales, competing directly with Tencent Music, which recently partnered with Galaxy Corporation.

While the duration of the temporary extension remains unspecified, the agreement ensures continued access to SM Entertainment's catalog for Chinese fans while negotiations proceed. This marks an important development in China's expanding music streaming landscape, particularly in the K-pop sector, where licensing agreements play a crucial role in market competition.

The outcome of these extended negotiations will likely impact both companies' positions in China's digital music market, where K-pop continues to be a significant driver of streaming and album sales.

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