Sony Music Takes 49% Stake in Vietnam’s 1Label to Corner V-Pop
By Trevor Loucks
Founder & Lead Developer, Dynamoi
Sony Music Entertainment (SME) isn't just dipping a toe into the Vietnamese market; it’s buying the plumbing.
On Tuesday, the major label’s Hong Kong division finalized a deal to acquire a 49% voting stake in 1Label JSC, the music arm of Vietnam’s media conglomerate YeaH1 Group. This isn't a standard distribution partnership—it is a structural acquisition that grants Sony direct governance over one of Southeast Asia's most potent media pipelines.
For industry strategists, this move signals the end of the "licensing era" in emerging markets. The majors are done renting local culture; now, they want equity in the companies creating it.
Anatomy of the 49% split
The deal reclassifies 1Label from a wholly-owned subsidiary of YeaH1 to an associated company. While YeaH1 retains a controlling 51% interest, Sony secures significant operational influence without the headache of full administrative integration.
The assets involved are critical:
- 1Label: The recording and publishing entity holding master rights.
- 1Talents: The artist management division, which was transferred under the 1Label umbrella specifically for this deal.
Key insight: By bundling management with recording rights, Sony is effectively buying into a 360-degree model. In markets like Vietnam where streaming CPMs are lower, controlling the management commission is often the only path to real profitability.
The V-Pop idol pipeline
Why YeaH1? Because they own the media inventory required to break artists. The partnership creates a direct bridge between YeaH1’s production capabilities—specifically the "Tan Binh Toan Nang" (All-Round Rookie) idol show—and Sony’s global distribution rails.
This mirrors the K-Pop export model perfected by HYBE: use domestic TV infrastructure to manufacture talent, then use global distribution to export it. YeaH1 handles the "zero to one" phase (discovery and training via 1Talents), while Sony handles the "one to one hundred" phase (global scaling).
This is a massive vote of confidence for YeaH1, a company that has been aggressively rebuilding since its 2019 YouTube network crisis. With revenue up 70% to ~$39M USD in the first nine months of 2025, YeaH1 has successfully pivoted from a precarious MCN model to an IP-ownership powerhouse.
Sony's surgical strike
Context matters: While Universal Music Group is currently bogged down in Brussels facing regulatory headwinds over its $775M bid for Downtown Music, Sony is executing surgical strikes in high-growth territories.
The strategy is distinct from its peers:
- Vs. HYBE: Just 24 hours prior, HYBE announced a partnership in Africa with Tyla’s team. But that remains a management JV. Sony’s move in Vietnam is a harder asset play involving direct equity.
- Vs. Warner: Warner Music India recently acquired Divo to secure South Indian market share. Sony’s move is parallel but focuses on the nascent "idol" economy rather than just catalog aggregation.
What strategists should watch
For professionals analyzing global expansion, the 1Label deal offers three clear signals:
- The "Media-Label" Hybrid: 1Label isn't just a record company; it's embedded in a media conglomerate. The most valuable targets in 2026 will be companies that own both the copyrights and the TV/digital shows that market them.
- Equity over Licensing: The days of majors simply licensing a local indie catalog for three years are fading. If you build a valuable infrastructure in the Global South, expect an acquisition offer, not just a distribution contract.
- Vietnam is the new battleground: With South Korea and Japan saturated, the "Big Three" are racing to lock down Vietnam's digital-native demographic before the local market consolidates.
Sony has planted its flag. The question now is how quickly UMG and Warner can respond without getting tangled in red tape.
About the Editor
Trevor Loucks is the founder and lead developer of Dynamoi, where he focuses on the convergence of music business strategy and advertising technology. He focuses on applying the latest ad-tech techniques to artist and record label campaigns so they compound downstream music royalty growth.
