Why is loona's company financially collapsing when loona sell 100k for their ablums

Quote from Zazatwin22

My exact thoughts. Aint that like a million dollars right there. Just keep doing cheap comebacks and there dedicated fans will eat it up no matter how bad it is

because they spent $10 million usd for predebut, and probably still haven't paid that amount back yet + interest..... Do you think all their album sales combined >= $10 million usd?

How long they have been selling 100k?

If they have been selling 100k album since debut they could probably cover the predebut investement that they used.

The problem is its just recently that group is getting traction. Plus the fact that we are in pandemic which definitely affects the revenue of majority of kpop groups.

Anyways I really hope this is not serious like the previous news about this financial issue last year.

Loona spent a lot on their predebut(which has been said already), but they also had a lawsuit of 3 million against them because this stupid ass company could not do the simplest job of uploading a video of the girls in a plataform(owned by Donuts)

Their pre-debut promotions alone lasted for almost two years, 2016 to 2018. Before their actual group debut on August 20, 2018.

Their MV's alone from pre-debut to now costs a ton of money. Plus hair and make up and outfits for 12 GIRLS. Plus other expenses. Plus company expenses.

And the money came from investors, which means these people are owed promised returns within a specific time period.

Their pre debut promotions were extensive, too many filler members, Kpop videos are getting more and more expensive to produce in order to keep up with the trends.

Also gotta remember that 100k sales does not equal $1.5 million in profit (considering each album sells ~$15). A LARGE chunk of that money pays for the album production, distribution, music production, M/V production, comeback stages + clothing, promotion, etc. And considering the amount of dept they accumulated for their debut, it's not surprising that it hasn't been paid off yet.

Quote from hannseohee

Their pre debut promotions were extensive, too many filler members, Kpop videos are getting more and more expensive to produce in order to keep up with the trends.

I have loved several of Loona's recent releases, Why Not and Star are SOTY quality for me. But even now, i still dont understand why BBC chose to have so many members in the group. It couldve easily just been a 7 member group, which wouldve reduced expenses by a decent chunk.

Heejin, Yves, Chuu, Olivia, Jinsoul, Cherry, and Kim Lip seem like the favored members anyway when it comes to line distribution.

Quote from bartkun

wait was there some news about Blockberry?

or one of members said they didn't get any money?

Thread

LOONA's future isnt looking really good

twitter.com/InformLoona/status/1442675383242006547?s=20
twitter.com/aoaluvme/status/1442681841081745408?s=20
so apparently bbc's financial problems has reached to a situation where their hair, makeup, stylists are notified to stop working, apparently even the employees were not paid on time and most of it were delayed, even the the taxes

girlgroupstan21

Sep 27th 2021

Quote from BlackpinkHouse

But even now, i still dont understand why BBC chose to have so many members in the group. It couldve easily just been a 7 member group, which wouldve reduced expenses by a decent chunk.

lol because it's their concept. 12 girls for 12 months (ie. 12 moons) a year.

Besides that, yeah I don't think it is that useful to have so many members.

Album sales dont put food on the table.

Debt. Before any of that success is probably multiple loans here and there to even debut a group.

One misleading point is people here think albums sales = profit

Albums sales IS NEVER the main source of income for idol groups. It has always been touring and CF.

For physical album sales, it comes with high production cost, and with more inclusions and higher quality design, outer box, they all come at higher cost. Most of these are fixed cost, including songs production cost, styling, photoshooting cost.

Revenue from album sales might seem a lot, but net profit might not be. Only when you can sell A LOT (like >300k-500k) to spread fixed cost over more units, then u can have higher profit margin.

100k doesnt seem to be much when see the quality of Loona albums.

Quote from BlackpinkHouse

I have loved several of Loona's recent releases, Why Not and Star are SOTY quality for me. But even now, i still dont understand why BBC chose to have so many members in the group. It couldve easily just been a 7 member group, which wouldve reduced expenses by a decent chunk.

Heejin, Yves, Chuu, Olivia, Jinsoul, Cherry, and Kim Lip seem like the favored members anyway when it comes to line distribution.

Having a ton of members seems to be the strategy for more cuter, girl next door type of groups. Since their fans will primarily be boys and there would be at certain members that appeal to certain preferences. But LOONA has been marketed more towards "woke", LGBTQ, often female fans. So yeah I don't know what the company's long term strategy was. The company was way too small to take that many risks

this industry has many costs that we're not even aware of as fans. financial problems for smaller companies, even with somewhat popular groups, is completely normal

Quote from peachyjoon

this industry has many costs that we're not even aware of as fans. financial problems for smaller companies, even with somewhat popular groups, is completely normal

Gfriend is good example of that

Decent fanbase decent sales, but company disbanded them + company in financial trouble