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One person accounts for half of quarterly sales… Vulnerable to issues such as non-renewal of contract and enlistment

group astro

group astro

(Seoul = Larose.VIP) Reporter Tae-su Lee = “In the case of B artists, individual sales are being generated as they continue to engage in album activities, advertisements, and acting activities… accounting for 23-54% of total sales.” (Fantagio Securities Report, 19th of last month)

It is natural that the popularity of celebrities varies widely, but as sales are concentrated on certain stars, entertainment agencies are becoming more concerned.

In particular, listed agencies whose stock prices fluctuate due to various variables surrounding celebrities seem to be making efforts to diversify their business by discovering new talent and new businesses.

According to the music industry on the 15th, Fantagio, a KOSDAQ-listed company well known as Cha Eun-woo’s agency, disclosed the sales and proportion of ‘main artists’ A, B, and C since 2021 in a securities report last month, and the combined sales proportion of these three teams is up to 83%. (2021).

In the case of B, the sales proportion was large at 5.4 billion won in 2021 (31st quarter, 23%), 2.6 billion won in the first half of 2022 (32nd quarter, 17%), and 11.9 billion won in the second half of 2022 to the first half of last year (33rd quarter, 31%). In particular, in the third quarter of last year, the sales of one star reached 6.7 billion won (1st quarter of the 34th period, 54%), accounting for more than half of the company’s total sales.

A also had a large proportion of KRW 13.3 billion (57%) in 2021, KRW 9.3 billion (61%) in the first half of 2022, and KRW 8.9 billion (23%) from the second half of 2022 to the first half of last year. C accounted for 4% of sales from the second half of 2022 to 1.5 billion won in the first half of last year.

According to the explanation that he pre-debuted with the web drama ‘To Be Continued’ in 2015 and will release his 3rd full-length album in 2022, A is a member of the group Astro, and C, a former member of the group Wanna One, is actor Ong Seong-wu.

B, who is attracting attention, can be assumed to be Cha Eun-woo due to the explanation that he ‘consistently worked on albums, commercials, and acting’, but a Fantagio official said, “We cannot disclose it as it is related to sales.”

Cha Eunwoo

Cha Eunwoo

Fantagio said, “The entertainment business has the characteristic that sales are greatly affected by the recognition and activity level of affiliated artists, as well as changes in contract terms or personal identity. We are aware of the situation in which sales are highly dependent on specific artists. Accordingly, we are working to discover new artists and diversify our portfolio,” he emphasized.

He also added, “As the drama production division generates sales, we believe that the dependence on sales from specific artists will gradually decrease in the future.”

Fantagio debuted the new boy group Lunate last year, and worked hard to diversify its profits by producing dramas such as ‘Lovely Dog Today’ and ‘Fantasy Sonata’. Recently, it attracted attention by revealing plans to produce a new drama, ‘Dae Jang Geum’ (tentative title), with Lee Young-ae, the protagonist of the ‘Dae Jang Geum’ syndrome, at the forefront.

This revenue diversification task is not only a problem for Fantagio. Although they did not disclose specific figures like Fantagio, all major listed agencies have it.

black pink

black pink

This is because if the contract period expires and the contract is not renewed, or if a popular male star enlists, a sharp drop in sales cannot be avoided for a certain period of time.

After suffering for half a year over the contract renewal issue of the girl group Blackpink, which had been a topic of unprecedented interest since the summer of last year, YG Entertainment concluded in the new year that “all members of the team will renew their contracts and individuals will part ways.”

YG was at a loss as Blackpink, which is mobilizing 1.8 million people for its world tour, accounts for an overwhelming portion of its singer lineup, but as they missed out on solo activities, discovering new IP (intellectual property rights) became a stepping stone.

Lim Soo-jin, a researcher at Daishin Securities, said in a recent report, “2024 is expected to be the most difficult time for YG. It is fortunate that Blackpink’s group contract renewal, which has the greatest impact on sales, was successful. However, Blackpink’s group contract in 2024 was successful.” “It is still difficult to predict whether there will be activity, so the volatility of performance in 2024 is still large,” he pointed out.

Researcher Lim added, “From a conservative perspective, a profit reduction in 2024 is expected to be inevitable.”

Accordingly, YG is expected to focus all its efforts on promoting new baby monsters while strengthening its group Treasure this year. Following the recent release of the new song ‘Stuck In The Middle’, Baby Monster will release a new mini-album with member Ahyun in April.

Girl group Baby Monster

Girl group Baby Monster

Hive, Korea’s No. 1 music agency, also started to discover the ‘next food’ by producing a large number of new artists around the enlistment of the group BTS. As of 2022, BTS’s sales share is said to be approximately 60%.

Hive achieved success by debuting girl groups Le Seraphim and New Jeans in 2022 and the group Boy Next Door last year. This year, following the debut of the group TWS last month, the girl group Aillet is scheduled to debut in March.

CFO (Chief Financial Officer) Kyeong-Jun Lee said in February of last year, “The proportion of all artists (excluding BTS) recorded around the mid-40%,” and “In order (excluding BTS), Seventeen still recorded the most sales. He said, “You can understand it in that order: Tomorrow by Together, Enhyphen, and new groups.”

tsl@yna.co.kr

Report to KakaoTalk okjebo 2024/02/15 07:00 Sent

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