Blackpink has brought a large source of revenue to YG Entertainment over the years.
According to Chosun newspaper (Korea), YG Entertainment’s stock price is plummeting after the news that Blackpink members did not renew their individual contracts.
The majority of the company’s revenue comes from the group and individual activities of global music groups. Other affiliated groups, although active, cannot bring good profits or boost stock prices.
Korean media said that YG Entertainment still cannot resolve its heavy dependence on Blackpink. Industry insiders estimate that Blackpink’s revenue and operating profit account for more than 80% of YG Entertainment’s total revenue.
The activities of new girl group Baby Monster and boy group Treasure have not met expectations. Meanwhile, YG Entertainment’s rival companies such as HYBE, SM Entertainment, JYP Entertainment are operating stably and growing more and more. Experts say that Blackpink’s group activities cannot lead the development of YG Entertainment.
Chosun reported that Blackpink’s personal contract is important. Similar to the case of HYBE, although BTS temporarily suspended operations in June 2022 to perform military service, the group’s revenue still accounts for about 60%.
During the time without BTS, the members’ active individual activities filled the void left by the group. In 2023, HYBE’s revenue will reach about 2.2229 trillion won, an increase of 25.15% over the previous year. Notably, the 6 members of BTS also brought in “huge” profits for the management company.
Financial information company FnGuide revealed that YG Entertainment’s revenue this year is expected to be 538.1 billion won, down 3.6% compared to last year. Of which, profit was about 82.3 billion won, down 12.31% over the same period.
It can be said that YG Entertainment is relying too much on the revenue that Blackpink brings. The fact that the four members did not sign individual contracts will greatly affect the company in the near future.