Reports reveal that SM Entertainment allegedly manipulated public opinion against rival label HYBE. Accusations suggest that SM Entertainment hired a public relations firm, Astraphe, during its escalating conflict with HYBE.
SM Entertainment allegedly manipulated public sentiment against HYBE
Leaked Telegram conversations indicate that Astraphe created a dedicated chat room for their viral marketing staff and SM employees. This chat room allegedly aimed to generate positive sentiments towards their company while spreading negative about HYBE.
Financial records show that SM paid Astraphe a staggering 1.38 billion won, approximately $995,699.81 USD. Although SM Entertainment claimed the money was for banner advertisements, insiders say viral marketing activities began on March 1. The Telegram leaks reveal an SM employee urgently requesting quick viral marketing action, and Astraphe agreed.
Additionally, the alleged strategies included sharing positive articles about SM Entertainment. However, it contained negative ones about HYBE in various online communities.
They reportedly used scare tactics to make fans worry SM Entertainment artists might be disbanded or released if HYBE took over. In a fan cafe post, one statement read, “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’s employees reportedly made sure their posts appeared as if they originated from genuine netizens.
The viral marketing reportedly persisted for a month, with Astraphe’s employees editing their posts to sound like real user interactions to avoid detection.
Furthermore, the company responded to the allegations by clarifying their motives. In an official statement, the company said, “We conducted online marketing activities. This was 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. This was part of a ‘media mix’ proposal from the agency with little impact on the campaign.”