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How long do you think Loona will be able to break even with Blockberry?

FallenAngel

By FallenAngel
in Random

  

23 members have voted

  1. 1. How long do you think Loona will be able to break even with Blockberry?

    • 1 year
      4
    • 2 years
      4
    • 3 years
      2
    • 4 years
      0
    • 5 years
      0
    • never
      13

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FallenAngel Long-term Trainee

FallenAngel

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Loona's company mediaplay about their four billion won (~$3,327,600 USD) investment on Loona on early 2017, this number probably higher with inflation or any additional cost for solo or sub unit promotion.

 

From kpopalypse, physicals sales did not bring much net profit money to the groups unless it's around more than 100k album sales, less than 100k album sales mean each promotion bring more debt to the groups, for example apink 83k physical sales actually adding to $96013 apink debt to the company.

 

Apink – 83.109 physical sales in 2015
x$20 (price per unit)
1662180 gross profit
-20% (332436) (bulk photobook fabrication)
1329744
-1% (13297.44) (bulk CD fabrication)
1316446.56
-30% (retailer cut)
-22% (distributor cut)
-30% (to Acube Entertainment)
total -88% (1158472.9728)
157973.58 net profit
-50% (to songwriters and producers)
78986.7936 to group before costs
-25000 (recording costs)
-150000 (MV costs)
-96013.2064 final net debt to group in that promotion.

 

So far Loona has 11 solo and 2 sub unit album promotion with MV probably cost more than the typical 150k because of their overseas shooting, with physical album sales much less than 83k of apink number so far they have to find another source to bring money.

 

For boy groups they can easily has concert tour but the only way for girl groups to bring money fast is with CF.

With Seolhyun IT girl status and many CF under her belt, AOA has accomplished what few girl groups are able to do – they have broken even with their management company, FNC Entertainment, within three years after their debut and has starting to getting paid after that.

 

If AOA and Seolhyun status as CF IT girl with much less pre-debut promotion cost need 3 years to break even, how long do you think Loona will be able to break even with Blockberry?

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Blinkers Senior Idol

Blinkers

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don't some companies not have this system? how do we know if bbc does?

 

The company who don't have break even rules are using their senior idol group profit to funding pre-debut cost of their new idol group.

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lovingu2 Global Superstar

lovingu2

1,959
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seems like the company has enough money though, otherwise they wouldn't spend so much on this unsure.png

yeah like when they were getting into it

they knew what they were getting into

 

they planned this for a long time and there's no one sure about how they'll do when they debut so it doesn't make sense to me why they would expect to be paid back all of what they spent on this whole PRE DEBUT project

 

or maybe each girl has a debt for her own mv separately and that's it

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Blinkers Senior Idol

Blinkers

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lol what are you talking about? are you talking about bbc?

they ain't rich because of that

 

No I am talking about the company who don't have break even rules, aka big three company, new idol group will get paid straight away because they have no debt, all pre-debut cost for training or promotion is considered zero because they are using their senior idol group profit to funding pre-debut cost of their new idol group.

 

Loona can have the same system like big three groups with no break even rules only if Ilkwang groups is willing to forget the 4 billion pre-debut money.

 

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lovingu2 Global Superstar

lovingu2

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No I am talking about the company who don't have break even rules, aka big three company, new idol group will get paid straight away because they have no debt, all pre-debut cost for training or promotion is considered zero because they are using their senior idol group profit to funding pre-debut cost of their new idol group.

 

Loona can have the same system like big three groups with no break even rules only if Ilkwang groups is willing to forget the 4 billion pre-debut money.

 

yes exactly

for all we know this isn't a debt 

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Suzy Quatro Global Superstar

Suzy Quatro

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They're not promoting the individual albums, who told you that? Also why do you mean break even and why you're taking into account all the production costs?

 

No I am talking about the company who don't have break even rules, aka big three company, new idol group will get paid straight away because they have no debt, all pre-debut cost for training or promotion is considered zero because they are using their senior idol group profit to funding pre-debut cost of their new idol group.

 

Loona can have the same system like big three groups with no break even rules only if Ilkwang groups is willing to forget the 4 billion pre-debut money.
 

 

This those not make sense, those type of costs need to be absorbed by the  executive producers. If the girls are meant to make up for it that would made them executive producers or big share holders of the company.

 

 

I think people doesn't really understand how things work and modern laws in developed countries but it's plain wrong. I don't think Loona has this system and it's clear this strategy it's not meant to make profit right away. They're not going music shows and they also didn't print much physical albums to begin with (many of them are already out of stock) and some members where signed very young (like at 13 to 15) so they can't have that type of abusive contract many are speculating about with minors.

 

What it's more their company seems to have enough resources and some girls have been acquired from other agencies who did the training. I guess they could paid those companies first in order for the girls to be able to join Loona but that would be it, so some girls were not even trained, directly, from BBC so there shouldn't be a trainee debt to begin with.

 

I'm sure they do have a formal contract with obligations and responsibilities to work for them but some of the girls have been around since 2016 (again they joined very young) so it's non-sense to assume they have to pay for the production of videos, trips, making of the albums, and literally everything, lol.

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Blinkers Senior Idol

Blinkers

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They're not promoting the individual albums, who told you that? Also why do you mean break even and why you're taking into account all the production costs?

 

 

This those not make sense, those type of costs need to be absorbed by the  executive producers. If the girls are meant to make up for it that would made them executive producers or big share holders of the company.

 

 

I think people doesn't really understand how things work and modern laws in developed countries but it's plain wrong. I don't think Loona has this system and it's clear this strategy it's not meant to make profit right away. They're not going music shows and they also didn't print much physical albums to begin with (many of them are already out of stock) and some members where signed very young (like at 13 to 15) so they can't have that type of abusive contract many are speculating about with minors.

 

What it's more their company seems to have enough resources and some girls have been acquired from other agencies who did the training. I guess they could paid those companies first in order for the girls to be able to join Loona but that would be it, so some girls were not even trained, directly, from BBC so there shouldn't be a trainee debt to begin with.

 

I'm sure they do have a formal contract with obligations and responsibilities to work for them but some of the girls have been around since 2016 (again they joined very young) so it's non-sense to assume they have to pay for the production of videos, trips, making of the albums, and literally everything, lol.

 

Lol .... the rules in Kpop company is made not for you you to makes sense.

 

 

This is the Income distribution of SM, YG, JYP, FNC, DSP. I am still shocked of how SM dividing their physical sales.

 

SM

Contract years: 7

Physical sales: Company (95), Artist (5)

Physical sales renewed: Company (90), Artist (10)

Events: Company (60), Artist (40)

Overseas promotions: Company (30), Artist (70)

Note: Divides income even if they didn't reach break-even point

 

YG

Contract years: 5

Physical sales: Company (50), Artist (50)

Physical sales renewed: Company (30), Artist (70)

Events: Company (40), Artist (60)

Overseas promotions: Company (50), Artist (50)

Note: Divides income even if they didn't reach break-even point

 

JYP

Contract years: 7

Physical sales: Company (50), Artist (50)

Physical sales renewed: Company (50), Artist (50)

Events: Company (60), Artist (40)

Overseas promotions: Company (50), Artist (50)

Note: Divides income even if they didn't reach break-even point

 

FNC

Contract years: 7

Physical sales: Company (70), Artist (30)

Physical sales renewed: Company (50), Artist (50)

Events: Company (60), Artist (40)

Overseas promotions: Company (50), Artist (50)

Note: Doesn't divide income if they didn't reach break-even point

 

DSP

Contract years: 5

Physical sales: Company (50), Artist (50)

Physical sales renewed: Company (50), Artist (50)

Events: Company (50), Artist (50)

Overseas promotions: Company (50), Artist (50)

Note: Divides income even if they didn't reach break-even point

 

 

 

Yes, some company considered the pre debut cost zero especially big three company, but the common practice is the income will be calculated by the net profit from all the cost of the promotion, so gross income will be deducted with production of videos, trips, making of the albums, and literally everything to get net income of that promotion.

This net income then will be divided with the groups and the company, this is the same in every kpop company, that way the company will make sure they get profit, the only difference is how much they dividing the net income.

 

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Suzy Quatro Global Superstar

Suzy Quatro

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Lol .... the rules in Kpop company is made not for you you to makes sense.

 

 

This is the Income distribution of SM, YG, JYP, FNC, DSP. I am still shocked of how SM dividing their physical sales.

 

SM

Contract years: 7

Physical sales: Company (95), Artist (5)

Physical sales renewed: Company (90), Artist (10)

Events: Company (60), Artist (40)

Overseas promotions: Company (30), Artist (70)

Note: Divides income even if they didn't reach break-even point

 

YG

Contract years: 5

Physical sales: Company (50), Artist (50)

Physical sales renewed: Company (30), Artist (70)

Events: Company (40), Artist (60)

Overseas promotions: Company (50), Artist (50)

Note: Divides income even if they didn't reach break-even point

 

JYP

Contract years: 7

Physical sales: Company (50), Artist (50)

Physical sales renewed: Company (50), Artist (50)

Events: Company (60), Artist (40)

Overseas promotions: Company (50), Artist (50)

Note: Divides income even if they didn't reach break-even point

 

FNC

Contract years: 7

Physical sales: Company (70), Artist (30)

Physical sales renewed: Company (50), Artist (50)

Events: Company (60), Artist (40)

Overseas promotions: Company (50), Artist (50)

Note: Doesn't divide income if they didn't reach break-even point

 

DSP

Contract years: 5

Physical sales: Company (50), Artist (50)

Physical sales renewed: Company (50), Artist (50)

Events: Company (50), Artist (50)

Overseas promotions: Company (50), Artist (50)

Note: Divides income even if they didn't reach break-even point

 

 

 

Yes, some company considered the pre debut cost zero especially big three company, but the common practice is the income will be calculated by the net profit from all the cost of the promotion, so gross income will be deducted with production of videos, trips, making of the albums, and literally everything to get net income of that promotion.

This net income then will be divided with the groups and the company, this is the same in every kpop company, that way the company will make sure they get profit, the only difference is how much they dividing the net income.

 

 

This is all good but still they can't charge the girls the full production costs and that doesn't even relate to what people call trainee debt as that's supposed to be the costs of their training (dance lessons, dormitory, etc) and as we're speaking of Loona and their company, not how things were done in the past from other companies, some of the girls were signed from other agencies.

 

I'm not calling you out as you're not the one making the bold speculation, and actually make sense, but other people are jumping into non-sense assumptions about Loona as a form of troll I suppose but some people might take that as facts.

 

If I had to guess (as I really don't know how they do things) I'd just assume they have no debt whatsoever because of their strategy and how they're taking a lot of time to prepare to the full group official debut. They prepare stuff for their individual releases and the company has small gigs for them here and they're taking their time and there is no sense of urgency with them.

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Blinkers Senior Idol

Blinkers

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This is all good but still they can't charge the girls the full production costs and that doesn't even relate to what people call trainee debt as that's supposed to be the costs of their training (dance lessons, dormitory, etc) and as we're speaking of Loona and their company, not how things were done in the past from other companies, some of the girls were signed from other agencies.

 

I'm not calling you out as you're not the one making the bold speculation, and actually make sense, but other people are jumping into non-sense assumptions about Loona as a form of troll I suppose but some people might take that as facts.

 

If I had to guess (as I really don't know how they do things) I'd just assume they have no debt whatsoever because of their strategy and how they're taking a lot of time to prepare to the full group official debut. They prepare stuff for their individual releases and the company has small gigs for them here and they're taking their time and there is no sense of urgency with them.

 

No urgency is not equal to not willing their investment go back, no one, especially a company want to just throw away 4 billion won, except if some speculation is correct and ilkwang is using Blockberry for some shady business like money laundering, then I don't think Loona will have to worry about debt at all.

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itouch Superstar

itouch

9,190
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I have slight feeling their company is money laundering. lol

 

Anyhow, when they debut all together,  Loona are my top girlgroup to be the future trend girls at this point.

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Suzy Quatro Global Superstar

Suzy Quatro

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No urgency is not equal to not willing their investment go back, no one, especially a company want to just throw away 4 billion won, except if some speculation is correct and ilkwang is using Blockberry for some shady business like money laundering, then I don't think Loona will have to worry about debt at all.

 

Money laundering doesn't work that way and it does mean their goal is not cash in right away with this group. It's still a business model but they're trying to first establish themselves as a company and I think there's still risk for the people who run the company and are putting their money on it and by the same proportion those people tend to be the ones gaining more if the group becomes successful.

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