thats all well and good but it doesn't really address the nagging feeling most people have that NCT is LSM's most expensive disappointment to date. Some of the members are clearly talented and have star qualities, why all the NCT system bloat to distract from that talent? Literally what have been the advantages so far?
But the facts don’t support your “nagging feeling.” SM had its most successful and profitable year last year and if you read through the financial reports, it’s on the back of NCT with a helping of aespa. The other groups round out the performance and diversity of their portfolio. This is a long term growth strategy that is reaching fruition.
One of the biggest advantages of the NCT system is just what’s happening here. You’re talking about them and thinking about them when they’re not even your group. The concept is eye catching and keeps people talking about the group in a way they’re not talking about other successful groups, like Seventeen.
It’s the “hook”.
It’s the point of difference that makes them different from other bg, esp the strong and very successful ones in their own company. If this had been a traditional concept, it would have come across as Shinee 2.0 or EXO 2.0. (This is why aespa is so different from RV and SNSD.) There are already tremendously talented singers and dancers in SM - so how do you make this group of tremendously talented singers and dancers different?
Additionally the system does what it was intended to - it created a brand that people are interested in. There are lifts in sales, streams and view for all the sub-units after the all-unit NCT events like Reonance, so instead of just having one profitable group, SM has essentially four. When the new unit debuts, these NCT fans will buy and stream and add even more $. Yes, some fans will only stan one unit, but true majority follow multiple units or at least members in different units.
Fundamentally, it takes the risk out of a new group by having a strong built-in audience. And it also creates multiple revenue streams: 127 sells a ton and Dream sells a ton and NCT sells a ton. Each unit had its own CF deals, concert tours and merch, which again, is more revenue streams.
Similarly, if there is a scandal, an injury or an enlistment, the company can shift attention onto one of the other groups or make small tweaks to the lineup in the interim.
When Taeyong had to go on hiatus for his back, four other members from different units subbed his parts rather than leaving a giant hole in the group. This wouldn’t have been possible without the NCT system, where they could temporarily sub a great rapper or dancer for him.
Because of the flexibility of the system, members can also highlight strengths in the rotational U units or experiment in other genres outside of their group’s style and sound. The young WayV members are better performers after being in the Make A Wish, 90s Love and Universe sub units as they gain knowledge from more experienced performers in Dream and 127. It’s a collabo without having to leave your own group.
Similarly, Sungchan picked up pointers in learning how to rap while recording Misfit with Taeyong.
Again, this is about long-term viability - ask any Czennie and they can give you five different options for the group’s first five soloists.
