SM Entertainment is facing accusations that the label manipulated netizens against HYBE.
According to reports, SM Entertainment hired a public relations company to manipulate public opinion online during the label's dispute with HYBE. In alleged Telegram conversations, SM Entertainment's public relations form Astraphe created a chat room for viral marketing employees and other label staff in order to create positive public opinion towards SM Entertainment and spread negative information about HYBE.
The contract agreement between SM Entertainment and Astraphe was allegedly 1.38 billion won ($995,699.81 USD), and the music label claimed the amount was for banner advertisements. However, reports say Astraphe was tasked with viral marketing on behalf of the label starting from March 1.
In the Telegram screenshots, an employee from SM Entertainment requests quick viral marketing, and Astraphe agrees. The marketing allegedly included sharing positive articles about SM Entertainment on online communities and sharing negative ones about HYBE.
The screenshots further reveal the marketing included raising fears SM Entertainment artists would be disbanded or let go under HYBE's potential management. One fan cafe post by Astraphe states, "As an SM fan, I think it could be worse if HYBE takes over. HYBE will demand management rights, and SM artists might not get opportunities." Astraphe employees are said to have taken care not to be discovered, and they would edit their posts to sound like they're coming from real netizens. The viral marketing reportedly went on for a month.
Following the allegations, SM Entertainment has come forward to state the marketing was used to defend management rights and reveal the company' stance to shareholders. The label stated, "We conducted online marketing activities through an outside agency to promote the SM 3.0 shareholder proposal and proxy solicitation website. The activities included sharing related articles on online communities as part of a 'media mix' proposal from the agency with little impact on the campaign."
Stay tuned for updates.
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