HYBE continues global expansion focusing on fandom business while YG prioritizes artist management.
The decline in record sales signals a need for all entertainment companies to reassess their business models for sustainability.
[TV Daily Kim Ji-hyun Reporter] The K-pop industry has recorded explosive growth over the past decade, particularly with the 'Big 4' — HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment — extending their influence both domestically and internationally. However, following 2023, they have confronted the potential decline in record sales. As a result, the 'Big 4' are now shifting toward a strategy of 'selection and concentration' to solidify their foundations. SM is in the process of selling its subsidiary, KeyEast, though a recent substantial contract fell through, prompting a focus on liquidating non-core assets. JYP has reduced its stake in Dear U and is strengthening its multi-label system through capital increases in its subsidiary, INIT Entertainment. HYBE is realigning its assets by selling off shares in competitors and actively seeking expansion into markets like Japan and India. Meanwhile, YG has pulled out of less profitable sectors and is focusing on launching new artists and conducting overseas tours.
The volatility within the K-pop market is prompting a strategic reevaluation among entertainment companies. The Big 4 are at a critical juncture where strengthening their core competencies and liquidating non-core assets is essential for sustainable growth. The anticipated decline in record sales signals the urgent need to identify new revenue streams.
HYBE, on the other hand, continues to focus on enhancing fan-centric revenue models and expanding into global markets. They are increasing average revenue per user through the Weverse platform, which should positively influence their future profitability. Their ongoing efforts to localize operations in the Indian and Japanese markets reflect their aggressive future vision.
YG is consolidating its business model while focusing on artist management. This agility allows them to strengthen K-pop group activities after withdrawing from less profitable sectors. The presence of global icons like BLACKPINK is expected to play a significant role in marketing and revenue expansion.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: TV Daily
