Pandemic blues: Small music labels struggle despite roaring K-pop boom​​​​​​​

[satoori]

[The Korea TImes] Pandemic blues: Small music labels struggle despite roaring K-pop boom

Online concerts may be solution for BTS, SuperM, but not for many other stars

K-pop record labels have lost one of their most lucrative revenue streams during the COVID-19 pandemic ― their stars performing in front of massive crowds. In a desperate attempt to survive the crisis, many have turned to online platforms.

K-pop titan BTS, for instance, performed the virtual concert "Bang Bang Con: The Live" in June and succeeded in attracting more than 750,000 paid viewers around the world. Big Hit Entertainment, the group's agency, is estimated to have earned about 22 billion won ($18 million) from ticket sales.

Boy band SuperM staged the online gig "SuperM ― Beyond the Future" in April, drawing an audience of some 75,000. SM Entertainment, its agency, is estimated to have made more than 2.4 billion won ($1.9 million) through the event.

Meanwhile, many small and midsized companies have failed to find solutions to keep their businesses profitable, according to Yoon Dong-hwan, vice president of the Record Labels Industry Association (LIAK) and CEO of management company M.Y.music Ent.

"I think the virtual concert is profitable only for about the top 10 K-pop stars that have a solid fandom in Korea and beyond," Yoon told The Korea Times. "Many other stars who are less popular (especially overseas) tried but failed to make them profitable."

LIAK, established in 2012 by local music labels, is a nonprofit trade organization that aims to protect the interests of its members and promote diversity in the industry, where only a few stars and music styles receive much of the spotlight.

"Powerhouses like Big Hit and SM have their own online platforms to live-stream a concert, but smaller K-pop agencies don't," Yoon said. "So about 40-50 percent of their concert profits go to the platform owners that stream and promote the event on their behalf."

He said the companies also pay for venues, sound, lighting, instruments, outfits and catering services, among others. It is same as offline shows, just without the crowds.

But the ticket price for an online event is cheaper ― only about 30,000 won for one that would cost more than 100,000 won at a concert hall.

"Given all these, it is tough for smaller agencies to generate revenues unless their stars have a very strong fan base who will still pay for events where they cannot see the stars in person," Yoon said.

No meaningful help from gov't

In an effort to help struggling entertainment businesses, the Ministry of Culture, Sports and Tourism announced on Sept. 1 that it will inject 29 billion won into building a studio and organizing online concerts for them. But industry insiders say the policy will likely be little help.

"A K-pop band without strong international fandom can't attract enough viewers to make virtual concerts profitable," Yoon said. "One thing the ministry can try is to bring together big stars and less popular ones for joint events. But it needs to think more about how to make the offer more appealing to superstars who do not need its help."

Critic Park Soo-jin, who writes for music magazine IZM, agrees.

"I believe what small and midsized K-pop management companies need is not a studio, but more opportunities for their artists to receive the spotlight with their music," Park said. "I doubt that the venue will continue to be used after the pandemic."

Will small K-pop labels see light at end of the tunnel?

As the virus still rages in much of the world and social distancing is the new normal, some K-pop management companies have been pushed to the brink of bankruptcy.

According to LIAK, more than 539 performances in Korea were delayed indefinitely or canceled between February and July. The total financial damage was estimated at over 121 billion won.

To help such companies, Yoon said, the government should focus more on supporting their album production.

"For the agencies and the singers, the government needs a policy that can support them to continue producing albums," he said. "The companies also need rent assistance for the items they may need to work in the pandemic environment."

He said he will continue to have such industry voices heard in the policymaking process.

But for now, Yoon and Park say small companies should come up with their own strategies to survive ― before they can take advantage of K-pop's global popularity that appears only to be growing amid the pandemic.

source: https://www.koreatimes.co.kr/www/art/2020/09/732_296126.html

[Yknocker]

Only the big labels which can get international fans will survive

[Poetry]

CIX please comeback...

[satoori]

3 minutes ago, Poetry said:

CIX please comeback...

comebacks are not free...  

[love]

29 minutes ago, Poetry said:

CIX please comeback...

my guess is october 

i've been waiting for it too...the teasers looked so interesting

[Poetry]

42 minutes ago, satoori said:

comebacks are not free...  

Well, I gave them my money for the fan meet tour but then COVID happened and they gave me a refund.

[hynapia]

"Given all these, it is tough for smaller agencies to generate revenues unless their stars have a very strong fan base who will still pay for events where they cannot see the stars in person," Yoon said.

Pretty much this. I mean, groups like Dreamcatcher, Loona, ATEEZ etc aren't from big companies like the Big3, Big Hit or even other upper mid tier companies but they're so popular internationally that if they do an online event/concert would definitely be profitable for their respective companies. People tend to downplay international fandoms but a lot of groups literally live off them.

Edited September 16, 2020 by hynapia

[hynapia]

2 hours ago, Poetry said:

CIX please comeback...

Cignature is having a comeback with their first EP next week so hopefully they finally go after them.

[Ghosty]

2 hours ago, love said:

my guess is october 

i've been waiting for it too...the teasers looked so interesting

It is October!  They announced that they'll have their online fanmeeting first, and then move forward with the comeback! Or maybe on the same day? Comeback before fanmeeting? Not even sure, but it is in October! Crazy to think that it's been almost a year without a CIX comeback, excluding Japanese releases. Hopefully they didn't lose any momentum. They're currently my favorite boy group! 

[satoori]

2 hours ago, Poetry said:

Well, I gave them my money for the fan meet tour but then COVID happened and they gave me a refund.

that sucks

1 hour ago, hynapia said:

"Given all these, it is tough for smaller agencies to generate revenues unless their stars have a very strong fan base who will still pay for events where they cannot see the stars in person," Yoon said.

Pretty much this. I mean, groups like Dreamcatcher, Loona, ATEEZ etc aren't from big companies like the Big3, Big Hit or even other upper mid tier companies but they're so popular internationally that if they do an online event/concert would definitely be profitable for their respective companies. People tend to downplay international fandoms but a lot of groups literally live off them.

Those groups wouldn't make much of a profit. Especially Dreamcatcher and Loona. I think you're giving their international fandom way to much credit. Ateez would do a little better , but still....

The key part of that statement you quoted is "still pay" that's one of the major points of this article. That's why this article specifically mentioned a handful of groups from bigger companies. It's not downplaying, in this case. It's the sad reality. The issue is the majority of a fandom is not going to find online worth the money and/or find an "free" stream alternative.

Even BTS only got 750K (but can sale 5 millions albums and more) and SuperM - with what 4 different fandoms - 75,000K and only able to make $1.9M - Which might seem like a lot but it isn't considering the cost of the show (including workers and staff)

 

Edited September 16, 2020 by satoori

[hynapia]

1 hour ago, satoori said:

that sucks

Those groups wouldn't make much of a profit. Especially Dreamcatcher and Loona. I think you're giving their international fandom way to much credit. Ateez would do a little better , but still....

The key part of that statement you quoted is "still pay" that's one of the major points of this article. That's why this article specifically mentioned a handful of groups from bigger companies. It's not downplaying, in this case. It's the sad reality. The issue is the majority of a fandom is not going to find online worth the money and/or find an "free" stream alternative.

Even BTS only got 750K (but can sale 5 millions albums and more) and SuperM - with what 4 different fandoms - 75,000K and only able to make $1.9M - Which might seem like a lot but it isn't considering the cost of the show (including workers and staff)

 

Yeah obviously if fans can find a way to watch the concerts/events for free they won't pay, but I was talking about how being from a "small company" is not necessarily the problem since you only need a big and invested fandom to make profit, so I used those 3 groups because they were the first ones that came to mind when thinking about groups with big and invested fandoms and that are from "small companies".

[MicrowavedTeaforYourSoul]

This made me wonder why some smaller companies also tried to make online events now considering it wouldn’t make that much or not at all 

[satoori]

3 minutes ago, hynapia said:

Yeah obviously if fans can find a way to watch the concerts/events for free they won't pay, but I was talking about how being from a "small company" is not necessarily the problem since you only need a big and invested fandom to make profit, so I used those 3 groups because they were the first ones that came to mind when thinking about groups with big and invested fandoms and that are from "small companies".

 

75k is already a "humble" number (seemed to be lowest attendance of online concerts reported for beyond live [sm x naver joint venture] other concerts are n/a which i will assume they felt it wasn't worth revealing the lower numbers...)

So I can only imagine dreamcatcher/loona....again ateez might could hit 75K or more (depending)

Nonetheless, companies will still push to try to do online content. Companies have lost one of their most lucrative revenue streams, and online concerts is a desperate attempt. Anything is better than nothing. 

[satoori]

1 minute ago, MicrowavedTeaforYourSoul said:

This made me wonder why some smaller companies also tried to make online events now considering it wouldn’t make that much or not at all 

it's better than nothing, i guess(?)

they have to do something for money, but also to keep fans engaged.

OT: perhaps, this is why otr held off on fromis comeback for so long. only had enough funds for one comeback. would of been able to make more money throughout the year if not for covid.

[sergel]

This is sad for sure. I think a Soompi article stated 34 small companies went bankrupt since March. There is a lack of performances so they’re struggling even more than before.

 

It’s so hard to chase your dream, work super hard for it, but never make it or, in some cases, not even debut.