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Meanwhile, there is also growing interest in the size of the amount for BLACKPINK's contract renewal. "Considering the contract amounts of Big Bang (YG, 1 billion won per person) and TWICE (JYP, 1.2 billion won per person), BLACKPINK's contract amount per person will be in the range of 1 billion to 1.5 billion won (T/N: 1.5 B = ~1.15M USD)," said Cha Yumi, a researcher at Mirae Asset Securities. "Considering BLACKPINK's global recognition, it may exceed estimates, but the impact on the company's profitability is limited because the artist is an artist with ticket power."
There is also a concern that the revenue sharing ratio between the company and the artist. The company's share when the artists are rookies is usually more than 50%, but the artist's share is often more than 80% (20% for the company) after renewal. However, an industry insider said, "The overall pie is much larger even if the company's share is reduced upon re-signing, as the company does not make any profit for three or four years out of the seven years of rookie activities and then exponentially grows in profit. Renewing is also much more favorable in terms of stock price symbolizing that the group's revenue is preserved on the balance sheet."
original post: here
1. That's lower than I thought
2. If the renewal is 1.5 billion and that the artist keeps 80% afterwards, they are getting paid a lot
3. Knowing this, it would be way more profitable for the company not to renew
4. That's it?
5. Isn't this why it's so hard for them to renew with Lisa?
6. I was wondering if 1.5 billion wasn't too little but if the profit sharing is 80%, thenㅋㅋㅋ That's such a good condition
7. Maybe because I'm into football these days, these numbers seem tiny
8. Isn't the profit sharing percentage way more important..?
9. I kinda feel like they should be putting more in the down payment...
10. It's not too little. There's also the profit sharing
