Cube Entertainment signs 80 billion won deal with Kakao Entertainment

  • Over the next five years, the Kakao subsidiary will get exclusive distribution rights for music from Cube Entertainment, which is home to girl group (G)I-DLE and boy band BTOB. Kakao Entertainment owns Melon, the largest domestic music service and second in terms of market share following YouTube music.


    Cube Entertainment will use the proceeds from the deal for album production and related development. Kakao will pay 50 billion won at the outset and then the rest after Cube Entertainment generates revenue above an agreed-upon benchmark.


    The agency and distributor will split revenue 70-30 for music downloaded and 65-35 for music streamed.


    Cube Entertainment’s revenue has been growing steadily since 2019, a year after girl group (G)I-DLE debuted. Last year, it made 72 billion won in revenue, a 92-percent rise compared to the previous year.


    (G)I-DLE is the most popular band from the agency. The group released two albums this year — “I NEVER DIE” in March and “I love” in October. The lead tracks from the albums, “Tomboy” and “Nxde,” topped major local charts and music programs in Korea and iTunes charts in multiple regions.


    "This deal is evidence of the higher value that Cube Entertainment is being assessed at in the market," a Cube Entertainment spokesperson said.


    "We believe it will not be difficult to pull off the revenue target, as (G)I-DLE has been achieving its biggest success yet. The amount has given us the room to react better to the fast-changing market conditions."


    Kosdaq-listed Cube Entertainment fell more than 10 percent in trading Wednesday after news of the deal was announced.



    Source: https://koreajoongangdaily.joi…nt/20221221165533947.html

  • how does exacly those exlusive rights work here?

    like song might be loaded on Melon earlier?

    if not then it's just a deal of '80bn worth' but it's marketed like that in terms that those are estimated numbers which streams/downloads of CUBE artists will make in certain amount of time specified in deal (probably few years).

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  • Every people who think a group under kakao have no privilege should read this. :check-bee:

    but Kakao ain't parent company

    they are just distributor


    they are RBW distributor as well :eyes:


    rbw.jpg

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  • but Kakao ain't parent company

    they are just distributor

    Are you pretending not to understand? Do you think being a distributor like Kakao or YG doesn't give you any advantage in the industry? It's even explained here :


    The agency and distributor will split revenue 70-30 for music downloaded and 65-35 for music streamed.

    Do you think a group belonging to Kakao should do this? No so they make money and so that money can be invested elsewhere. And when you're also the distributor, it's easier to promote your own products.

    "If you have time to fantasize about a beautiful end, then just live beautifully 'til the end."


    2bca8f6350f4d02a5e6b134ef325f83ec5739c69.gifv

  • Are you pretending not to understand? Do you think being a distributor like Kakao or YG doesn't give you any advantage in the industry? It's even explained here :


    Do you think a group belonging to Kakao should do this? No so they make money and so that money can be invested elsewhere. And when you're also the distributor, it's easier to promote your own products.

    ok most companies under HYBE umbrella have YG Plus

    you look at SM and JYP and say but they have Dreamus what even is that?

    Dreamus parent company is SK, and they have SK Hynix, SK Telefom, SK Innovation, SK Group,

    that's same shit like Kakao... or even more

    just look here :)


    Top publicly traded South Korean companies by revenue
    Top public companies are: Samsung, Hyundai, SK Group, POSCO, LG Electronics
    companiesmarketcap.com


    also to make a joke even Woollim had Kakao as distributor, not sure if this helped them in any way :wink:


    and many companies had Stone as distributor, which is a CJ subsidiary

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  • You really don't understand what i mean.


    I'll say it in a different way :


    If your company is also your distributor, you have an advantage because you are not dependent on someone else.

    "If you have time to fantasize about a beautiful end, then just live beautifully 'til the end."


    2bca8f6350f4d02a5e6b134ef325f83ec5739c69.gifv

  • YGPlus is still the biggest digital and physical music and merch distributor by a hefty margin.


    It's one of just 5 distributors that was chosen by IFPI to distribute ISRC codes in Korea. Basically labels have to go to YGPlus, whether they distribute for them or not to get it. It's how you are paid for your music and how sales are tracked.



    • Money Today

      YG PLUS, selected as a record code manager by the International Music Industry Association

      Input 2021.03.02. 10:31 am Revision 2021.03.02. 10:32 am

      Reporter Kim Geon-woo

      [Money Today Reporter Gunwoo Kim]

      YG PLUS announced on the 2nd that it has been selected as an International Standard Record Code ( ISRC ) manager by IFPI in London . ISRC is the only international standard code for recording and a permanent identification code, which is widely used internationally due to its high efficiency in copyright management. In particular, ISRC sound source registration is essential for global music platforms such as Spotify, Apple Music, YouTube, Amazon, and Desser, and it is a necessary code to distribute sound sources and music videos to the global market. Currently, only 5 of the domestic distribution companies are registered as ISRC managers, and many distribution companies still receive ISRC through domestic music integration management system ( MIMS ) or overseas companies . YG PLUS was selected as the final manager in recognition of its internal distribution system and professional competence, and plans to distribute the sound source and video to the world by directly issuing ISRC codes to domestic agencies

    YG Family

    1080x360

    *Disclaimer I don't read responses to my posts unless I've replied to you before. If that offends you BLOCK ME. It's not my job to police your feelings.

  • All my faves are under kakao now,

    That means I'm a full fledged company stan now

    Cube is not under Kakao they have a business partnership, it's different :sweat:


    You do know that every companies expect the big3 got their albums/merch distributed by big distributors such as dreamus, yg select, HYBE, CJ and Kakao nothing has to do with being advantaged.

    I explained where the advantage is above. when you subtract something you must have a commercial agreement with this other company so you are dependent, and as explained in the article Cube will have to pay part of its income for the benefit of Kakao something that group from a company like YG or a company owned by Kakao don't need to do it is therefore a structural and also a financial advantage. The money you save in distribution can be invested elsewhere.

    "If you have time to fantasize about a beautiful end, then just live beautifully 'til the end."


    2bca8f6350f4d02a5e6b134ef325f83ec5739c69.gifv

  • Cube is not under Kakao they have a business partnership, it's different :sweat:


    I explained where the advantage is above. when you subtract something you must have a commercial agreement with this other company so you are dependent, and as explained in the article Cube will have to pay part of its income for the benefit of Kakao something that group from a company like YG or a company owned by Kakao don't need to do it is therefore a structural and also a financial advantage. The money you save in distribution can be invested elsewhere.

    then this is a character development arc for cube, since in this year they learnt that a mid company can't go to a higher place if they fight alone...

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