I always criticize JYP for the way they manage their groups, but on the other hand I understand why they have to do it

JYP also needs to give Boy Story more MVs and promote them better or else people will forever ignore them and than come with comments like "are they new?" or "Who the fuck are they?"

I heard this a lot and it is quit sad

In 2021 I saw people posting on AKP that they think DAY6 was the worst threated artist in JYP and when I said that this is actually Boy Story a lot people just said "Who the fuck are they? I don't care cause it is Day6!"

urg

Quote from Dreamer95

Basically the company has trapped themselves creatively due to strictly business decisions. Mainly their high profit margins. If you ever studied economics or invested, you know what it means. In simple terms, they've promised their shareholders big profits and they can't simply not deliver it, they singned up for this business model long before their current groups debuted, it is nothing personal.

And their strategy worked well, until Hybe was born. Hybe (and YG to lesser degree) treats its groups as a vanity project. They are allowed to burn cash and operate at break even point or even go to minus if that helps their project. Things like spending money on playlisting is not a justified spending for example as it is just an exposure, it is not a profitable thing to do. Overspending on MVs is not a profitable thing to do either, it is a nice thing to have, but it is not a necessity. JYP groups can only do promotions that have financial justification.

So basically what I am trying to say with all this is, in order for things to change for Twice, Itzy, Nmixx, SK and etc. an structural change needs to first happen at JYP on corporate level. Which is currently impossible because profits are good.

Wut? Are you saying Hybe acts dont have to worry about profit margins?

JYP IS shortsighted, i agree, but that's his greed talking. He's the stingiest, cheepest mofo in all of Kpop, agreed, and you see it in the way he bleeds his poor staff and idols dry, making the biggest profit margins in all of Kpop.

But that doesnt equate to Hybe being ok with their acts only breaking even or going into the red lol.

Look at what Hybe did to Nuest, Gfriend, and the now delaying of Fromis9 who might be next on the chopping block. If you dont have SUPERIOR profit potential in Hybe, you are going to get dumped.

Look at how they've milked every single fandom, especially Armys. They care more than any label about profits. And if you want to talk about milking fanbases for profit, you can look no further than Blackpink as example number one lol.

Bottom line, they are ALL corporations and corporations only care about one thing....PROFITS. If BTS, TXT, Enhypen, LSRFM and New Jeans werent making money hand over fist or if they were causing Hybe to lose money, they would be AXED in a microsecond.

Profit margin is definitely their main selling point for the shareholders, current and future ones. They are excellent on that front, their profit margin is the best amongst the big 4. Even better than the Almighty Kakao.

Sure, that is really terrible news to anyone that is not a Shareholder, but sacrifices need to be made.

The only group in JYP that seems to not get the cheap treatment these days is SK, but that's mainly because they bring a lot of money for the company with album sales.

All big public companies are subject to their shareholders though. SM, YG, Hybe etc are all in the same boat as JYP. Theres no economic issues that prevent JYP ggs from being as successful in Korea as any other gg.

Twice, Nmixx etc issues lie with the groups themselves, there's a point where multiple opportunities with different sounds and concepts have arisen for each of them and mutiple times it didn't work out. Can't blame the shareholders if the public don't care

well you are right on this one

they do have the highest net profit margin

Their sales are very high compare to what they invest in their group's comebacks

Quote from Dreamer95

No, you misunderstood. All companies care about profit of course. Thats how capitalism works. High profit margin is something different. For example lets say Hybe is supposed to make 10 million profit on 100 million revenue, right? Well in JYP's case, they have to make 10 million profit on 20 million revenue. Which means Hybe can afford spending more.

Margins become less of an issue when your profits are higher. Hybe idea is to dump cash and make their acts having much higher revenues than any one else. Making 30 million profit out of 100 million revenue still better than making 20 million profit out of 40 million revenue. Even though profits margins are much higher in the second scenario

Inportsnt to notice, many of companies costs are fixed. Hybe has teams responsible to shooting, designing, animation, filming, etc that can be reused by all groups. Reusing high quality studios for all their acts is something that turns to be a good investment, because both their bigger groups and smaller groups can make use of it.

Besides, I don't think JYP spending is so much worse than YG or SM. YG releases far less music and turn their singers into tour slaves. Their comeback looks more wealth because the resources are focused on fewer comebacks. While SM has pretty dreadful budget for some of their acts comebacks, just like JYP.

it's hard to to burn cash like u say when they have multiple projects every year for their groups. They cannot predict which one will do better. They also cannot capitalize if the project does well because they have to start the next project quickly to keep fans hooked to the groups. It has it's advantages and disadvantages. Only hybe is reckless where they burn cash endlessly. Their strategy is a mix of jyp and yg. And that is the trendy strategy right now and the one that seems to be working the best.

So yeah, jyp quality suffers because they can't burn cash like hybe. yg fanbase suffers because they can't deliver several projects like hybe(and jyp).

JYPE's Division System is as follows

Division 1: Stray Kids, 2PM (Both are self managed and self produced)

Division 2: itzy

Division 3: TWICE

Division 4: NMIXX, Xdinary Heroes

JYPE Japan: Nizi U (Sony Music Japan)

JYPE China: Boy Story

The Division System is a replica of a Subsidiary with the difference that there are no CEO's and similar level Management, however both system manages the Artists under them.

As we can see, there is space for another Group in each Division with JYPE America being added.

The Division System allows multiple Groups being active as follows for Groups that debut after TWICE

Stray Kids - World Tour

Itzy - World Tour

TWICE - Promoting Comeback

NMIXX - Promoting Comeback

Xdinary Heroes - Impending Comeback

NiziU - Promoting Comeback

Boys' Story - ????

With their recent and current Activities, that's a lot of earnings through Merchandise which happens to be 1 of the top 2 earners for the Big 3, the other being Album Sales.

JYPE's Division System has completely changed the Companies' Financials to huge Profits and it's something that doesn't need to change because all the Artists are under JYPE Contracts, so JYPE could create a Division to handle the "old Goats" and put them there.

This makes sense, considering that the production value of some groups in JYP has kinda decreased, and lacks that charm it used to have. I think JYP works smarter, and not necessarily harder, and I don’t think it will change any time soon.

i don't know. jyp MVs look more expensive than a lot of hybe/big3 artist MVs generally. playlisting thing is just speculation. just because several artists are doing good on spotify doesnt mean its paid playlisting.

I don't know the specifics of JYP's business model, but the artist having to make sacrifices for the label ain't it. Some of these artists can be considered among the largest in the world and the old system no longer serves them.

This is why artists have third-party managers to advocate for them. The K-Pop system not allowing for this means there's no checks and balances system and disproportionate power is on the label side.

This will all eventually change, but I hope sooner than later.

Your first mistake is to compare in any aspect HYBE with JYPE. Jyp is a small fish compared with the big young shark hybe.

With BTS as their cheat code it's unlogical to compare them. Since 1 BTS member have a similar touring and sale power like the top groups in JYPE (TWICE AND SKZ). That is also the result why HYBE can debut every 6 months a new super rookie group since there is already a pool of investment from the older groups. And this pool is just 10x bigger than the JYP one.

Quote from Dreamer95

Aren't you tired of these horrible takes, seriously asking?

very serious. of course a song in spotify global top 10 will be put on today's top hits. wouldnt make sense to put a song that falls out of top 200 in 2 days on that playlist. its not about money