It was established after SM restructured its affiliates to focus on its music business.

The company manages drama, entertainment, and fields of new media.

[4] The wholly-owned subsidiary was established to promote the restructuring of group affiliates to facilitate the business structure.

[6] It was also expected to secure market competitiveness as affiliates related to media studios have coordinated agreements through integrated management of drama, entertainment, and new media fields.

[11] On November 16, 2022, SM Studios premiered its first "global" content, Welcome to NCT Universe.