Knetz are divided about the reservation system for BigHit’s new building (HYBE)

[LiterallyMadethistocomment]

You see... this is a normal intercompany transaction. I see no problem with the labels paying rent to use the facilities/practice rooms. The thing is - in the point of view of taxation, if they dont pay for the use of the facility - it will be deemed as a donation to the labels which is taxable at a different rate from the taxes in usual business operations.

At the end of the day if they pay for the use of facilities this will just offset in the books once they consolidate their financials... it's hard to explain in laymans term but I think people from finance field will understand what I'm saying.

I don't know how it goes for the work setting in South Korea, but in my firm it is normal to use reservation system in conference rooms, function halls etc. The idea is that employees should not spend too much time in a confined space - this will render open communication across all functions and encourage efficiency through social interaction. As much as this is an 'Entertainment' business I think Hybe is using the same model.

[LiterallyMadethistocomment]

7 hours ago, satoori said:

reddit comments (r/bangtan and r/kpop):

1. If you think about it, I'm pretty sure they already have a "room reservation" model in place lol. Their groups share spaces way too often without overlap in a much smaller building for there not to be. I'm not too worried. This mainly sounds to me like a way of keeping track of expenses/operating costs for each company under HYBE. Considering there are three floors of practice rooms and studios I can't imagine they'll be fighting for space. If it ever becomes an issue, the interior being so flexible might mean they could expand to add more "artist" space floors but I think they've probably considered how often spaces get used now and how many groups/trainees will be now working under the same building. There'll probably be some hiccups but you live and you learn lol.

2. It’s silly to me that people think practice rooms are going to be an issue. I guarantee you if BH thought BTS would be hindered by a shortage of practice rooms, they’d add more practice rooms. Reservations are probably mostly for convenience so artists don’t have to manually check different floors or whatever for a room to practice in on a given day, which would waste time. Also, if you gather room utilization stats, it’s way easier for the company to plan for future growth/expansion preemptively.

3. If anything, having a booking system could be taken as a sign of them having more flexibility due to different studios having different equipment / sizes / specifications overall – ie space for set pieces (see: the Dionysus MAMA stage) and the likes. That's *good*. I'm really confused that this seems to be such an issue for some people, haha. I get that it might be confusing and look counterintuitive, but in my eyes it's more positive than anything.

4. Internal billing is a very common practice in big businesses. I'm sure there's plenty of space for the groups to practice, and that the price is lower than renting a full building (otherwise Pledis would be staying at their own place, and it's listed for rent right now).

5. Honestly it just sounds like a way of keeping track of expenses/operating costs. That's important when you have a parent company that oversees separate ventures. There's three floors of practice rooms, I'd imagine they're not cramped for space lol. I actually think they already have a similar model in place in their current building because their artists share spaces quite often without overlap, and it's a much smaller building. What I'm most curious about is production space, I know right now a lot of BigHit artists have their own studios, that's how it's pretty much always been. I can't imagine, and don't imagine those will ever be "shared" spaces, outside of recording rooms of course. I guess we'll see once the artists are set up in the space. Also, I thought this was the norm, I've heard it mentioned that SM had a similar reservation model for their practice rooms (sans payment since the artists are under the same company) or am I misremembering?

6. Trust me its not as mean as it sounds like. It’s all internal anyway so it’s not like there is actual cash flow movement. And it’s not like it’s the idols actually wiping out their own fund to pay for this. It would just be an internal invoice sent to their cost center or account code etc. It just to keep track for all these sublabel operating expenses.

 

I just did a back read Anyway, my response earlier will give context on items 4-6 stated by the reddit user