After an audio recording believed to be of the famed singer Coco Lee criticizing the talent show 'Sing! China' was revealed on August 17, STAR CM Holdings Ltd.'s (Ticker: 06698.HK) stock price suffered a sharp decline. By the close of August 18, shares had fallen 23.43% to HKD 94.950, slashing almost HKD 116 billion from the company's market cap.
Alleged Criticisms from Coco Lee; 'Sing! China' Counteracts
The Paper reported the leaked recording's duration to be approximately 9 minutes, segmented into three parts. It seemingly has Coco Lee lamenting the unfair treatment she faced during her tenure on 'Sing! China'. She conveyed her shock at the unscrupulous behavior of the show's team. Despite her personal sacrifices, the system was perceived as unjust, and no mentor had the power to amend it.
Coco Lee also detailed an episode where, due to a severe leg issue, she fell onstage. Though she had pre-coordinated with a contestant to provide support, the contestant was directed elsewhere during the shoot, leading to her fall.
Further footage released on August 18 appeared to show Coco Lee publicly decrying on the set. In the video, she raises concerns about the show's perceived unjust scoring mechanism. When crew members attempt to intercede, she vehemently tells them to stay away.
However, Coco Lee did voice her profound affection for the show, viewing the young contestants as symbols of hope. Their shared passion for music was her primary motivator, emphasizing her readiness to make sacrifices for both the show and its participants.
Reacting to the emergence of the recording, 'Sing! China' officially addressed the issue on Weibo. They reproached the distribution of the maliciously edited recording, praising Coco Lee's commitment and zeal towards the show. They highlighted that any past misunderstandings were clarified in real-time and concluded by paying homage to the departed artist.
Seeking insights on the alleged edited content claims, media outlets approached Coco Lee's sisters, Li Qiulin and Li Silin. While Li Qiulin opted not to elaborate beyond the video contents, Li Silin pointed to their ongoing sorrow and requested time and space to grieve.
On July 5, Li Silin announced on social media that Coco Lee, battling depression, had taken her own life on July 2. Despite desperate rescue attempts, she passed away on July 5. In 2022, Coco Lee had succeeded Liao Changyong as a mentor on 'Sing! China'.
'Sing! China' Battles Revenue Shortfall
According to STAR CM's IPO documentation, the company specializes in creating and operating IPs. Their repertoire boasts a variety of acclaimed show IPs, encompassing singing, dancing, talent, talk shows, and diverse other variety programs.
One of STAR CM's core entities in China is Shanghai Canxing Culture & Broadcast Co. Ltd. Within this entity, 'Sing! China' stands as their most significant and iconic show IP.
The IPO details revealed a three-year revenue downturn for STAR CM, dwindling from CNY 1.807 billion in 2019 to CNY 1.560 billion in 2020, and shrinking further to CNY 1.127 billion in 2021. The 2022 figures reflected an even tighter contraction to CNY 873 million.
This financial constriction was attributed to shrinking advertising budgets from corporate clients, directly impacting 'Sing! China's' revenue inflow. Over a span of three years, the show's contribution to STAR CM's revenues regressed from CNY 490.5 million in 2019 to CNY 324.5 million in 2020, and yet again to CNY 252 million in 2021.
Having debuted 'Sing! China' in 2012, its twelfth season arrived in 2023. With dwindling revenues, the show's reputation has also been marred. While Douban awarded the inaugural season of 'Sing! China' a 7.9/10 rating, Coco Lee's 2022 season managed just 3.6/10. The 2023 season's rating remains to be disclosed.
