[JYP REPORT] TWICE EARNED ₩3.3B IN CONCERTS LAST YEAR

JYP 1Q 2022 Results:

Revenue: 67.78B (↑ 110%)

Op Profit:: 19.2 (↑39%)

Net Profit: 16.746 (↑ 39%)

Increase due to Stray Kids, NMixx comebacks and Twice's NA tours (7 shows) and increase in Twice MD sales in the US. Concert sales were 3.3B won.

JYP takes a Minimum Guarantee for its artists overseas which is why the 7 shows are 3.3B. This is very common within the K industry. TheYuanta analyst believes Stray Kids MG will be similar to Twice. YG does it as well for its artists, taking the MG as it is less risk.

Hmmm....TWICE earned ₩14.802 billion with their 7 shows in the US last year. So, if JYP only got 3.3B won, then their profit margin is around 22.5%- which made me curious if TWICE members even got anything considering the costs of staying in the US. For example, BTS expenses during their 5 days UN visit in NY was revealed to be at 1.7B won. You have to consider the staffs that the artists came with, security, rental cars, airfare, covid test kits, food, hotel and other expenses that we don't know of. Twice' expenses are probably on the lower side or higher than BTS but they still had to split the profits made 9 ways & JYP. It's a pain in the ass.

Idk maybe, they earned a penny or two. If anything, I see this move as a promotion for the group, and to gauge their real demand/pull in the upcoming concerts where they can have more power to negotiate with the concert promoter for better profit margin.

Sources:

Quote from idontsleep

it doesn't add up... Is this report pure profit for JYPE or what cuz no person in their right mind would take 22% cut from concerts.

The % is not fixed. JYP signed the deal for a 'Minimum Guarantee' price. The % is just something I calculated based on the fixed price that JYP negotiated with the concert promoter.

Generally, producing a concert costs a lot of money and so many people have to get paid first. JYP set their own price for concerts tho, so the concert promoter planned for everything. The artists just have to show up and perform.

More Insights on how 'MG' works in the US and the possible costs:

Performers are often offered a guarantee, making the performance risk-free as they will be offered a set fee regardless of whether the show sells out, with the promoter shouldering any losses. In many cases, the performers will get a guaranteed minimum fee plus a percentage of anything made beyond that figure.

“In the case of a fixed fee, the promoter would guarantee the artist money and then the promoter gets anything above that,” says Steve Machin, CEO of Accent Media, the operator of the .tickets domain name space. “Or they might split the money with different percentages. So if it’s normally 80-20 after allowable costs, if the act gets a guarantee, then the split would be adjusted in favour of the promoter.”

The artist’s share then has to cover its own mini economy. The act will have their own crew (roadies, sound engineers, lighting crew, catering, tour manager, backing singers, extra musicians, dancers and so on) as well as transport trucks, with 30 articulated trucks on the road not being uncommon for the biggest shows. One huge act’s manager reportedly said it cost them $750,000 a day to be on the road, whether they were playing a show or not. Talking of which, don’t forget that the manager also needs their cut of the band’s share – normally 15%-20%.

Source: https://www.google.com/amp/s/a…s-concert-ticket-money-go

Quote from tetetete

yeah its shocking

the report said twice, skz and yg grps also do this minimum guarantee deal

that means the artists don't make a lot from touring

It depends on how to deal was structured & if the show is sold out. The 'MG' deal is common for artists esp in Kpop, so they still get paid regardless of how the concert will turn out (financially). But yeah, the concert promoter gets more than the company/artists. They basically facilitated the concert & take the risks.

Quote from ketchUp

hopefully, it is like this.

to get only the minimum fee is a scam, considering how low is it.

Yeah, JYP probably negotiated for more profits once the show sell out (which it did). So, I'm betting that the 3.3B won includes the 'MG' + the 'additional' profits made from sold out shows.

Quote from barnaby

Yeah, not believing these numbers.

It's literally in JYP's financial report. The source tha I cited just posted it in summary.

Quote from TheBotter

So if I'm understanding this correctly JYPE basically took around what? 2.5m upfront from the promoter in exchange for the promoter taking the lions share(possibly all) other monies earned from ticket sales? JYPE opting for just 2.5m out of potentially 15-ish million to get it upfront and risk free? Ridiculous.

On top of that JYPE still had to essentially pay the expenses from that 2.5 mil to actually fund the travel, staff wages, show production, etc? Do I have that correct, tell me that's wrong lol? That the promoter funded that and not JYPE/Twice?

If so that probably cut deep into the 2.5m...my god, the girls likely made absolutely nothing from these shows if that's the case. I'm sure the company doesn't really care since they sell literally millions and millions of USD in merch...but that's the company...highly doubt the girls see much of that.

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Yeah, a fixed fee is common in the industry esp in Kpop. Concert promoter takes the bigger cut in the pie, since they took the risks and facilitated everything. I'm pretty sure the 3.3B includes the additional fee + a fixed fee, since all the shows are sold out.

Quote from TheBotter

On top of that JYPE still had to essentially pay the expenses from that 2.5 mil to actually fund the travel, staff wages, show production, etc? Do I have that correct, tell me that's wrong lol? That the promoter funded that and not JYPE/Twice?

Not quite sure in this matter, but sometimes the venue shoulders this or it's on the artists share/cut (like what the source in my first comment said). It all depends on what both parties agreed on terms & negotiated. For Kpop, it's hard to say since they travel overseas and with numerous staffs on board. I'll just edit my first post to avoid confusion. LOL.

It's not shocking to me that people don't know this stuffs tho. Fans always thought that concerts make a lot of money, but we have to consider so many things (the venue capacity, deals structure & demand of artists to negotiate for better % as much as possible). The numbers didn't include the merch sales.

Artists get their highest % in profit margin tho when it comes to profit distribution between them & their company. Next is endorsements and merch, music, so on & so forth. Twice probably makes more money on their endorsement deals currently, since the profit margin is better and they can't tour in huge scale due to pandemic. Most artists probably share the sentiments these days.