Display MoreThere isn't much disadvantage from a financial point of view. I was trying to explain for the difference in sales vs streams that were seeing and went of on a tangent.
YGs going for sheer volume and many companies do this. Take straw companies for example, a 30 billion dollar industry is successful because everyone needs straws and only recently started seeing decline as people become more environmentally conscious.
The main potential disadvantage is in the long term when a group is past their peak. A strong dedicated fanbase can keep a group sustainable for a very long time. BP strongest advantage is their streaming numbers but the revenue generated from streams is very low.
Arguably, one of their largest source of income is their CF deals and the value of their image. The issue with branding is is only good as long as you stay relevant. Fashion company no longer offer deals once models drop off and for this reason, it's a very unreliable source in the long run.
But one could argue that BP is so big that the amount they make in 7 years is probably more than what some kpop groups make in a 14 years or more but it really comes down to financial details that none of us really know.
On the other hand, while BPs average album sold per comeback is higher than most groups, their infrequent comeback means their total sale, which is what really matters financially, is lower than most groups relative to their size. You have boy groups seeking 3-5x that or more.
So to answer your question, the disadvantage isn't in maximizing profits but maximizing total future revenue. People who are think they're already number one, the numbers are great, are not seeing the bigger picture.
It doesn't have to be one or the other. You can very well have a large number of fans and have a large portion of them being dedicated fans, it comes down to YGs fan retention strategy. Notice how unhappy blinks are? This shouldbt be the case. A comeback signs be a joyous event but its ruined by the bare minimum number of songs given.
They can potentially sell even more albums in the US with a dedicated fanbase, more total album sales, and more security in the future. The difference between whether BP stay relevant in the next 5 years vs next 20 comes down to YGs ability to maintain fans over time.
Thank you for this! That was a really useful explanation. I hadn't thought about profit vs. total future revenue. Fandom vs. GP satisfaction probably plays into tracks as well.
I wonder if this hints at a deliberately short-term strategy for BP -- I hope that's not the case, but whether they renew is up in the air. In that case retention and future profits are irrelevant. I wonder if the resentment they've built up would bleed into the success of the YGNGG fandom. (It would serve YG right). If anyone would do this it's YG.
This could also be an over-the-top attempt at pre-solo-starving -- Twice went through their equivalent of a drought (like 7 months lol) before Nayeon's debut and Red Velvet's been gone since March after promising a cb every season -- you can bet a lot of that will fuel Seulgi's success.
In either case, if I were a Blink i'd be so hurt and pissed.
Good thing straw companies aren't counting on California as they've been banned. But the paper straw companies are doing great because it takes about three of them to get through one beverage. :)
