BLACKPINK's concert is not as profitable as I think it is

no idk, I dont check the company performance of a group I dont care about

that's maniatic

Quote from sweetenerstan

Looking at YG's annual report and thinking most of BP's 'overpriced' tickets only went to promoter and middlemen huh.

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If the Born Pink Tour is estimated to have grossed 340M USD and the net profit is 104B won or 77M USD in today's currency, then the GP is only 23%. It should be noted that YG is only taking MG and not percentage like HYBE usually does.

For those who don't know, performers are often offered a guarantee, making the performance risk-free as they will be offered a set fee regardless of whether the show sells out, with the promoter shouldering any losses.

In percentage or profit sharing, it is high risk high reward, basically you have an agreement of profit share with the promoter. For 'profitable' concerts, this is more advantageous on the artists' side as you have more leverage and can get more % and money if the show did well.

With YG only taking MG/minimum guarantee (upfront fee) per concert, is it time to take the risk?

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Just another of YG's mismanagement, enriching the middlepeople.

Only Hybe, who has actually formed or bought companies which deal with concerts, has the ability to secure most of the revenue for itself. Everyone else, except IU in Korea only, uses middlemen who skim most of the profit. (IU's concerts in Korea are organized by herself and people related to her so she gets most of the profit herself, but her foreign concerts are arranged by some other entities so she only gets the guarantee, just like every other non Hybe acts outside of Korea.)

These are negotiable.

If they only take the percentage, this would be a high number, let's say 25% (Just guessing)

They can also take the guarantee + a small percentage, say 5%

The bigger the name, the higher slice they can demand.

Quote from BEG4DAWIN

These are negotiable.

If they only take the percentage, this would be a high number, let's say 25% (Just guessing)

They can also take the guarantee + a small percentage, say 5%

The bigger the name, the higher slice they can demand.

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But up to now YG only cared about the cut he got, not the members got

Hopefully as they organize their own concerts they would be able to arrange better rates

Quote from sweetenerstan

Born Pink Tour sales

66 dates (2022-2023)

Revenue: 340M USD

Average Revenue: 5.2M USD (roundoff)

Average Gross Profit: 1.2M USD (roundoff)

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IU's concert at Chamshil at 2022 had a total revenue of 9.5 billion won, about $8.5 million by the exchange rate of that day, and sale of her goods had increased by 7.6 billion won, mostly sold at the concert venue, or about a bit short of $7 million.

And "Performance Production Cost" was 4.5 billion won, or a bit more than $4 million. Since IU was the only singer in her company and she only had one concert, it can be deduced that the profit from her concert was around $4.5 million, or a bit more than 50% of the total revenue.

I have never watched a BlackPink concert but I don't think its production cost should be significantly more than that of IU's concert, so assuming a 55% cost, at 2.86 mil/per cost, the profit per concert should be 2.34 m per concert.

So almost half of total concert profits were skimmed by the concert organizers, and that is before YG has taken his cut.

Yuck.

Kpop fans should NEVER look at financial reports and think they can interpret or understand how businesses work.

You're Kpop fans. Your understanding of how businesses function is limited due to your perspective of just being a fan.

Prices and contracts are dynamic and variable.

You can't even begin to understand contracts and the levels of complexity.

Let's just say the OP's (and a few other people in this thread) understanding of how this works is on an elementary school level.

Quote from Blue2012

Yuck.

Kpop fans should NEVER look at financial reports and think they can interpret or understand how businesses work.

You're Kpop fans. Your understanding of how businesses function is limited due to your perspective of just being a fan.

Prices and contracts are dynamic and variable.

You can't even begin to understand contracts and the levels of complexity.

Let's just say the OP's (and a few other people in this thread) understanding of how this works is on an elementary school level.

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KPop fans come from every walk of life and some of them can read financial statements

And they tend to prefer more of the revenues to go to their faves rather than the company or peoples nothing to do with their faves.

Which is part of reason I talk about IU all the time since the very existence of her signifies a very strong alternative where the artist can claim virtually all of the revenue herself

Quote from WhyKnock

Only Hybe, who has actually formed or bought companies which deal with concerts, has the ability to secure most of the revenue for itself.

HYBE is a promoter themselves so they take most of the revenue.

I'm glad I didn't post this, because I wanted to. Every time I said Blinks can celebrate their huge concerts from last year, but they're hardly making any profit, all of them laughed at me. I want to remind everyone that YG had to sell their golf course the first time they did a World Tour. YG's biggest profit is not coming from Kpop, anyone who's interested in these things and did some research knows this. Only some clueless fans think Blackpink built YG and without them, they will go bankrupt.

Honestly, if they continue like this, Babymoster will cause their bankruptcy.🤣 Also, don't forget how much money they lost after G-Dragon left them not long ago. The company is in the mud, literally. If I remember correctly, they're not even in the TOP3 most profitable companies list anymore. I'm pretty sure HYBE, JYP and even SM is ahead of them now, or CUBE, I don't remember.

Quote from Blue2012

Yuck.

Kpop fans should NEVER look at financial reports and think they can interpret or understand how businesses work.

You can acctually be a kpop fan and know how to read an annualreport and understand it......?

But sure, it's difficult for an outsider to get all the details right.

Quote from Kitty_Saurus

HYBE is a promoter themselves so they take most of the revenue.

Revenue is not the same as profit, they also takes most of the cost.....