Why dont labels invest in longevity instead of teaching fans to look for a new gen of groups?

    I feel like HYBE will do this because of the Geffen ties, but why are groups always broken up into sections of time instead of just being well known for a long time?


    Labels even end up signing legacy acts on and then just tour them and randomly release albums anyways every once in a while, so why not just trust that the consumer will stay interested for a long time and give those groups of 5, 6 years the same consistency?


    Beyonce, taylor swift, nicki minaj, drake, lady gaga… they all pull numbers beyond AND have touring power ANNND have purchasing power because theyve all cultivated these fanbases.


    YG had this with BP and now the girls are all able to do it themselves? Like why even put the millions of dollars into these groups if you plan to replace them with another expensive millions of dollars group instead of planning to make the big money in the second half of their career??

    And labels themselves teach us to look for the next groups “Who’s Next?” From YG. SM Rookies…. Like it just doesnt make any fucking sense to me to teach me to become disinterested?! Is there more money in this business model??


    Is it hoping that maybe i’ll go to SNSD concerts, buy SNSD merch, CDs and stream, and then hoping i’ll do all minus concerts for RV and then the same minus concerts and Merch for Aespa because theyre growing a brand as SM opposed to the individual groups???

  • AllKill VIP
  • AllKill VIP

    that would make sense for older generations when you had like few cartoons or anime to watch


    nowadays kids instead of watching long vlogs... are watching shorts or tiktoks


    I would say more concerning is the multi-label system that some big agencies are doing and are taking too big piece of cake from whole market share

    which makes it harder for groups from smaller agencies to achieve success

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  • AllKill VIP
  • AllKill VIP
  • AllKill VIP
  • AllKill VIP

    More contracts mean more expenses since artists now have more leverage. You also have to pay multiple people rather than just individuals, so you're dividing it even in more ways besides yourself, the artist, the distributor, etc. Will you bring in enough money as a group to make all members of the group happy while you and everyone else makes enough profit?


    What about the market? Are people interested in your older group? Will they spend as much money, or does your target audience want people closer to their age? Do the idols themselves really want to continue being as involved in the regular grind of being an idol? If they want to slow down, then who is going to make up that lost revenue? By extension, how many active idols do you want out there? You want SM to keep chugging out SES, MILK, SNSD, f(x), Red Velvet, etc?


    Younger and debuting idols are cheaper. Have less power in their initial contract. And they are willing to go through the idol life for a few years.


    Seems to make sense to me.


    If you want a longer career, you stick with soloists since the share of the pie is bigger for everyone involved, especially the artist.

  • AllKill VIP

    [엔터코노미] JYP 현지화 전략, 이대로 가면 '빛 좋은 개살구'
    간판 아티스트인 트와이스, 스트레이 키즈의 왕성한 활동과 그로 인한 성과에 힘입어 JYP엔터테인먼트(이하 JYP)는 주요 엔터기업 중 가장 공격적인 아티스트 현지화 전략을 추진하고 있다. 해외 가요 시장을 효과적으로 공략한다는 측면에서 전략의 방향성은 긍정적이다. 그러나 여기에…
    news.mtn.co.kr


    Looks like JYP is a well run company. It is just that their new bets on developing and debuting local artists fell way short of eexpectations.


    "JYP's operating profit and net profit for the first quarter of this year decreased by 20% and 26.3%, respectively, compared to the same period last year. JYP explained the reason as, "The increased cost of management sales was reflected in the operating performance." This means that the increased management costs due to the debut of new artists such as VCHA and NEXZ have become a burden to the point of affecting profitability."


    "Lim Soo-jin, a researcher at Daishin Securities, predicted that "JYP will record sales of KRW 96.8 billion (YoY -36%) and operating profit of KRW 20 billion (YoY -56%) in the second quarter of this year, missing the consensus of securities firms by about 16%." Kim Hye-young, a researcher at Daol Investment & Securities, predicted sales of KRW 87.3 billion (YoY -36%) and operating profit of KRW 21.8 billion (YoY -56%), and Ahn Do-young, a researcher at Korea Investment & Securities, predicted second quarter performance of sales of KRW 97.1 billion (YoY -35.9%) and operating profit of KRW 20.6 billion (YoY -54.8%).


    The sluggish performance of next-generation and new artist IPs is being pointed out as a factor slowing down JYP's growth. Ryu Eun-ae, a researcher at KB Securities, analyzed that "the poor performance of junior artists is increasing the cost burden, which is slowing down growth."

    Quote from bangmenah

    Wouldnt you say that Twice is their ONLY profitable group?

    Stray Kids is the definition of profitable.


    They're the 3rd best selling kpop group ever physically, tour huge and perform in domes + stadiums, and have popular members getting good deals/endorsements (+ also getting big deals as a group).

    489d17e4419016411b36dad88b64df8ffff25ff5.jpg   adfe19c6c403b5343d1458ffba827afe2cf24613.jpg  ae106ac2dca5c430cc8c469d7da001a0ea28bf39.jpg  a373bcf44bc8f3c52101cd2e099b3f0a6598eb9d.jpg

  • AllKill VIP

    that is still 2 million USD profit mate.

    YoY? Really? With the way how all companies are tanking?


    Do I wish they would focus more on SK? Yes.

    Will they? Doubt it.

  • AllKill VIP
    Quote from alexS

    that is still 2 million USD profit mate.

    YoY? Really? With the way how all companies are tanking?


    Do I wish they would focus more on SK? Yes.

    Will they? Doubt it.



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    Because at re-signing the companies' shares are reduced significantly


    Usually the distribution for the first 7 years is about 4:6 for larger companies, and smaller for smaller companies


    and that is after costs are deducted


    After 7 years the idols have gained enough insight about the cost structure and so the distribution becomes about 6:4, or 7:3 if the idol is quite famous. So the companies have little incentive to maintain legacy idols unless they could arrange their own producing.

    a few legendary artists can stand the test of time (like bp and the other ones you mentioned in the OP) but thats not typical, most artists just fall off even if the label keeps trying (mamamoo, rv, twice). i think its especially like that in kpop where it appeals a lot to younger people and its a lot more superficial than the west.

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