As you know most idols either follow the step of their own idols, like for example Nmixx members are fans of Twice, Itzy, Miss A, Babymonster members are fans of Blackpink and so on, or simply go to the company where they think they have a higher chance to succeed.
And then there is Hybe, that basically consists of multiple small companies like Pledis, Source Music, Ador and etc. that operate independently and hold their own auditions. Therefore even though size wise JYP and YG are still top4, in terms of their attractiveness to trainees they are suddenly top10 because each sub label of Hybe ranks higher for potential trainees.
SM will be fine with Riize and Aespa, plus they have their own visual types that are unique to them. But YG and JYP will no longer have the "first look" like they used to and will have to work with "rejects".
Granted, former big3 "rejects" gave us many great groups under smaller companies but will YG and JYP be able to work the same way these agencies did? Not with their current business model I am afraid.
