NetEase Cloud Music has reached a preliminary agreement with SM Entertainment to continue streaming their catalog beyond the January 31st deadline, allowing for extended negotiations between both companies.

The temporary extension comes after Cloud Music warned last week about a possible non-renewal of their licensing agreement. Fan support on Chinese social media platform Weibo reportedly played a crucial role in bringing both parties back to negotiations.

This agreement is particularly significant for China's music streaming market, where K-pop maintains a strong presence. SM Entertainment has over 1.5 million followers on Weibo, with popular groups like Aespa and Red Velvet commanding millions more followers individually.

NetEase Cloud Music has been strengthening its position in the K-pop market, having secured partnerships with Kakao Entertainment and JYP Entertainment in 2024. The platform also competes with Tencent Music, which recently finalized a deal with Galaxy Corporation.

While the duration of this temporary extension remains unspecified, the agreement ensures continued access to SM Entertainment's catalog for Chinese fans while both companies work toward a long-term licensing solution.

The outcome of these negotiations will likely impact China's rapidly expanding music streaming market, where K-pop content remains a crucial driver of user engagement and revenue.

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