I was mostly thinking from the perspective of the companies
They still have to invest in merch but with CFs and brand deals its really an easy but big pay check
Aside from brand deals as group, they also make money through BT21 and Tinytan which have deals with etude, crocs, mcdonalds, etc.
I think merch and concerts for the company and CFs and Song credits for the artists. Ofc both benefit both but I think in terms of % of profit A is for company and B is for the artist.
I think concerts is most money and then probs cfs.
For idols, I think if you're popular enough for the brands to notice you, you already make a lot of money from your main jobs, brand deals are just there to keep you in public's eyes. And the contracts depend on how popular you are, it's not the same for everyone.
Also, I heard that celebrities usually take large proportion from their CFs paycheck because the company doesn't own the royalties or distribution like music or concerts.
for bts, its merch sales
they make the most money from it
BTS make most money from music and concerts tho
I know this is tongue in cheek but on a serious note, BTS usually makes most of their money from music sales and concerts. Their merch sale game is pretty strong though. They usually sell out multiple times even restocked merch.
As to CF and brand deals in kpop, I think they are a great revenue stream for idols/ groups that don’t have a lot of demand because music sales and concerts are still the standard for generating income. Also some idols do better as celebrities than as a musical artist so their appeal is more desirable for CFs and brand deals. Recognition as a Celebrity is easier to achieve. It’s why variety and acting are just as important as music for idols in SK.
I don't think so. Idols don't make a lot from CFs unless you're Suzy, IU or Jennie, basically the CF Queens in Kpop. Half of them are group CFs so you have to divide it among 4-6 people and then the company also get it's shares.
Contract differs for each artist. 4th gen idols don't make the same from their brand deals as let's say Blackpink who are all global ambassadors and have been working with their respective brands for a few years now.
For both idols and companies, touring and mech are the most profitable. That's why even when Suzy made 10B won from her CFs in 2013, JYP still called 2PM the breadwinner of JYPE.
No. Companies still gets much more profits form music sales and also merch sales is a big thing.
Companies gets much bigger share of profits from music sales and merch sales than idols while CFs deals on the other hand are one of the activities idols usually gets the bigger share.
For example NCT Dream who sell like 2 million copies per album. Now imagine if SM get 3 USD profit per album sold that would mean just from that 1 album SM would have earned 6 million USD profit.
While from CFs deals if you didn't know SM contract was released to public back in 2009 and that of course included the profit distribution part and it said in Korea SM idols get 65% of the profit from CF deals while SM gets 35%. Of course that was 14 years ago so who knows if it is still like that but it is the best we got.
I have no idea how much NCT Dream would get paid for a CF deal but lets just say 1 billion won which most likely is overestimation because I heard that is what some top highest in demand Korean celebs get paid.
That is about 760k USD SM share of that would be the 35% which 266k USD.
In order SM to earn as much money from NCT Dream CFs deals than they earn from just 1 NCT Dream album NCT Dream would have to have 23 1 billion won CFs deals.
Display MoreNo. Companies still gets much more profits form music sales and also merch sales is a big thing.
Companies gets much bigger share of profits from music sales and merch sales than idols while CFs deals on the other hand are one of the activities idols usually gets the bigger share.
For example NCT Dream who sell like 2 million copies per album. Now imagine if SM get 3 USD profit per album sold that would mean just from that 1 album SM would have earned 6 million USD profit.
While from CFs deals if you didn't know SM contract was released to public back in 2009 and that of course included the profit distribution part and it said in Korea SM idols get 65% of the profit from CF deals while SM gets 35%. Of course that was 14 years ago so who knows if it is still like that but it is the best we got.
I have no idea how much NCT Dream would get paid for a CF deal but lets just say 1 billion won which most likely is overestimation because I heard that is what some top highest in demand Korean celebs get paid.
That is about 760k USD SM share of that would be the 35% which 266k USD.
In order SM to earn as much money from NCT Dream CFs deals than they earn from just 1 NCT Dream album NCT Dream would have to have 23 1 billion won CFs deals.
Ok I did not consider company VS artists profit share portion and you are right on that
but I dont think companies profit as much as 3 dollar per album
I think it costs alot to make albums, from songs, MVs, photos and actual material costs. They are selling albums at cheaper price now too.
Display MoreNo. Companies still gets much more profits form music sales and also merch sales is a big thing.
Companies gets much bigger share of profits from music sales and merch sales than idols while CFs deals on the other hand are one of the activities idols usually gets the bigger share.
For example NCT Dream who sell like 2 million copies per album. Now imagine if SM get 3 USD profit per album sold that would mean just from that 1 album SM would have earned 6 million USD profit.
While from CFs deals if you didn't know SM contract was released to public back in 2009 and that of course included the profit distribution part and it said in Korea SM idols get 65% of the profit from CF deals while SM gets 35%. Of course that was 14 years ago so who knows if it is still like that but it is the best we got.
I have no idea how much NCT Dream would get paid for a CF deal but lets just say 1 billion won which most likely is overestimation because I heard that is what some top highest in demand Korean celebs get paid.
That is about 760k USD SM share of that would be the 35% which 266k USD.
In order SM to earn as much money from NCT Dream CFs deals than they earn from just 1 NCT Dream album NCT Dream would have to have 23 1 billion won CFs deals.
Exactly.
Just look at the reports, cfs come last generally.
That's kinda how western contracts work too, the difference is that in the west they get a lot more from cfs, brand deals, and concerts.
To release and promote music, companies spend alot of money. Currently bc of digipacks the album prices are also at record low. They also spend alot of money to promote the digital material on spotify and youtube.
On the other hand for CFS and Brand deals they just cash their checks without spending anything.
The end goal for any business, Kpop included, is creating a loyal fanbase that you can sell to.
Any business will have their main income, and (multiple) side income, and cf & brand deals are the side income. It's nice to collect $1m not paying any expense. But it's nicer to make $5m from a concert, spend $2m, and profit $3m. Second option is better because you have more control over the income source AND you make more money.
In business, you can think of CF & brand deals as affiliate marketing. You help other people sell their product and you get a cut. However, the next step is always to make your own and sell it, because you profit more.
If you are limited to the Korean market, then yes, it helps a lot.
If however you are big enough overseas, and do huge concerts or many many large concerts, touring + merchandise sold during the concerts is 10 times more. Thats why acts like BP and Twice now do not really do much in Korea and fans of the bigger overseas groups complain when they do things in Korea saying why are you wasting time there.
sure whatever makes the most money
and cfs and brand deals not only gets the artist money they also increase the artist's public exposure leading to more deals in the future
To release and promote music, companies spend alot of money. Currently bc of digipacks the album prices are also at record low. They also spend alot of money to promote the digital material on spotify and youtube.
On the other hand for CFS and Brand deals they just cash their checks without spending anything.
Cfs and brand deals have always been the business end goal for all those in entertainment.
Actors and actresses have been doing it since forever, idols are just catching up.
Imagine actors are paid not much per episode. It's said that the highest paid earns like 200k per ep, but somehow, they are always the richest entertainers mostly with only one drama a year and sometimes with a movie, though movies pay way better especially for veterans.
Cfs and brand deals make good money. Not even THAAD or the pandemic stops it. Concerts bring in a lot but it comes with a lot of expenses, risks, regulations and losses sometimes.
Display MoreNo. Companies still gets much more profits form music sales and also merch sales is a big thing.
Companies gets much bigger share of profits from music sales and merch sales than idols while CFs deals on the other hand are one of the activities idols usually gets the bigger share.
For example NCT Dream who sell like 2 million copies per album. Now imagine if SM get 3 USD profit per album sold that would mean just from that 1 album SM would have earned 6 million USD profit.
While from CFs deals if you didn't know SM contract was released to public back in 2009 and that of course included the profit distribution part and it said in Korea SM idols get 65% of the profit from CF deals while SM gets 35%. Of course that was 14 years ago so who knows if it is still like that but it is the best we got.
I have no idea how much NCT Dream would get paid for a CF deal but lets just say 1 billion won which most likely is overestimation because I heard that is what some top highest in demand Korean celebs get paid.
That is about 760k USD SM share of that would be the 35% which 266k USD.
In order SM to earn as much money from NCT Dream CFs deals than they earn from just 1 NCT Dream album NCT Dream would have to have 23 1 billion won CFs deals. I can totally relate to the frustrations of navigating customer service in any business, especially when it comes to food delivery services https://www.pissedconsumer.com/ A few months ago, I decided to try Hungryroot, and while their meals are fantastic, I had a couple of issues with my first order that needed resolving. I wasn’t sure where to start, but I reached out to their customer service team. I was surprised at how quickly they responded, and I was able to get everything sorted out without much hassle. Their support team was super friendly and clear about the process. If you’re on the fence about trying it, I’d say their customer service really sets them apart from many other businesses. They definitely took the stress out of my experience!
Thank you for your thoughts, absolutely agree!
No, not the end goal, that still is music, because physical sales and concert tours still are the largest revenue earners.
But CFs are great deals for idols, as you mention they bring good money without much investment by the agency. Also take much less time, compared to music promotions.
Secondly, they increase the exposure of the idol to the public. That's huge value to idol groups.
So while not the primary goal, getting CF deals are pretty important to any idol.
Don’t have an account yet? Register yourself now and be a part of our community!
