China's Entertainment Regulations To Affect YG, SM, JYP

    The Chinese government's attempts to regulate its entertainment sector will affect the K-pop industry, because China is the top source of revenue for Korea's leading entertainment agencies.


    The Cyberspace Administration of China issued a notice on Aug. 27 saying it will implement 10 measures to improve fan culture, including the scrapping of ranking entertainers and halting paid voting systems on entertainment TV shows.


    Right after the notice was announced, Tencent's music streaming service, QQ Music, restricted customers from purchasing more than one copy of an album online.


    Total exports of K-pop albums in July this year surged 3.6 times year-on-year to $26 million (30.7 billion won). Sales coming from China reached $8.25 million, which was the biggest amount ever. But the Chinese regulation is expected to affect this trend, while local securities firms say they will have to see the actual impact of the regulations during the third quarter of this year before estimating monetary losses.


    "Because album sales are based on individual purchase, it is difficult to accurately predict the impact of the restrictions until we confirm the decline in sales in the third quarter," said Park Da-gyeom, a researcher at Hi Investment & Securities.


    China's State Administration of Radio, Film, and Television (SARFT) also issued the "Directive on Increasing Oversight of Entertainment Programs and their Personnel" on Sept. 2, banning effeminate boy bands from starring in idol talent shows broadcast on TV networks and internet platforms.


    Chinese authorities said these regulations aim to eliminate immoral entertainers who commit illegal activities, and television stations will cast actors and singers based on their political sophistication, moral conduct and social assessment.


    A day after SARFT's announcement, the stock prices of Korea's three representative K-pop firms all declined.


    YG Entertainment, SM Entertainment and JYP Entertainment witnessed their stock prices decrease by 2.54 percent, 1.94 percent and 1.57 percent, respectively. Keyeast, a management agency specializing in actors, also saw its stock price drop 4 percent on the same day.


    But officials at domestic talent agencies are saying the impact of the restrictive measures from China on their financial soundness will be limited as the level of reliance in terms of generating money from the sale of music albums isn't that high compared to previous years.


    JYP Entertainment has been investing in the metaverse and non-fungible tokens to strengthen its music business. SM Entertainment is planning to sell off a 19.42 percent stake, possibly to CJ Group or Kakao Entertainment.


    Source: https://m.koreatimes.co.kr/pages/article.asp?newsIdx=315074

    Atleast now LSM cant sell his shares to Chinese companies

    god blesssssssssssss

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    Quote from poteto

    Total exports of K-pop albums in July this year surged 3.6 times year-on-year to $26 million (30.7 billion won). Sales coming from China reached $8.25 million, which was the biggest amount ever. But the Chinese regulation is expected to affect this trend, while local securities firms say they will have to see the actual impact of the regulations during the third quarter of this year before estimating monetary losses.



    Source: https://m.koreatimes.co.kr/pages/article.asp?newsIdx=315074

    This is a good article.

    lol at those people said that china market does not affect their fav. That like 1/3 overall for physical sale. It's gona affect everyone.

    Quote from KangK

    This is a good article.

    lol at those people said that china market does not affect their fav. That like 1/3 overall for physical sale. It's gona affect everyone.

    It will effect everyone, some more than others of course, a big part of the increase in sales for a lot of mid groups are because of China.

    The article: idk I guess we're gonna have to wait and see while things may go down, it may not be as much as suspected because most companies don't rely solely on physical sales.

    Kpop stans:

    The Sky Is Falling Chicken Little GIF - The Sky Is Falling Chicken Little Chicken - Discover & Share GIFs

    Quote from NEO

    These companies have other business ventures, they'll be fine. We shouldn't be worried about multi-millionaire companies. :clown:


    Quote from dummi

    Oh nooo the billion dollar companies will have to make some changes :clown:

    One question, do you really think people is talking about these topic because they are sad the companies will loose money?



    Or, because these could change how a part of the industry, where our faves work and can have effects to them, works? (I know, I know, that can't be possible)

    Quote from poteto

    One question, do you really think people is talking about these topic because they are sad the companies will loose money?



    Or, because these could change how a part of the industry, where our faves work and can have effects to them, works? (I know, I know, that can't be possible)

    Not saying it's your case, but some people keep talking about it because they THINK there's a possibility of "rival groups" going down.

    Quote from NEO

    Not saying it's your case, but some people keep talking about it because they THINK there's a possibility of "rival groups" going down.

    Oh it's definitely this. I mean stans in general love to put down Chinese fans for some reason in general, but this is really what it's about. No one really cares if less albums are sold... they just want groups who threaten their faves to fall so they can point out that classic line "they're only relevant because of China" which is supposed to be an insult for some reason that I still don't understand.

    Quote from quark12395

    Oh it's definitely this. I mean stans in general love to put down Chinese fans for some reason in general, but this is really what it's about. No one really cares if less albums are sold... they just want groups who threaten their faves to fall so they can point out that classic line "they're only relevant because of China" which is supposed to be an insult for some reason that I still don't understand.

    It's because they have the idea that only C-bars bulk buy. :clown:

    Albums sales without concert was always slippery slope anyway. Before groups who used to sell a lot used to be able to tour a lot and in the end that’s where the money came from. It was a means to an end.


    When China banned concert that was a much bigger blow than any of this.


    So we will see less album sales that’ll be interesting indeed. But not a particularly huge blow to kpop as 2016 was.

    Quote from NEO

    Not saying it's your case, but some people keep talking about it because they THINK there's a possibility of "rival groups" going down.

    And you are right.


    In my case I talk and post about this because it could effect how things work in the industry, and I find that very interesting.


    That's why I don't talk about who is going to loose sales, money... because we don't know it, and because it's unnecessary.


    That's why I didn't like those posts (sry if I sounded rude) because I like to talk about these things.

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