How do I stop being obsessed with kpop
BTS releases the single Life Goes On - K-Pop changes the music world
The K-pop company Big Hit Entertainment has been listed on the South Korean stock exchange since October.
Big Hit's strength lies not only in the success of its biggest music act, K-pop superstars BTS, but also in its radical marketing strategy.
With the “Artist Indirect Involvement Business” model and the takeover of all areas relevant to its business, Big Hit is revolutionizing an entire industry.
The new single from the K-Pop superhero BTS has just been released: Life Goes On. This moves millions of fans not just in Korea, but worldwide - and the share price of Big Hit Entertainment. The company behind BTS only went public on October 15th. At the end of the day, the shares closed 90 percent above the issue price, and Big Hit's market value was over four billion dollars. Company boss Bang Sihyuk became a billionaire. From Korea, Bang is changing the global music industry forever.
Bloomberg estimates Bang's net worth at $ 1.4 billion. He owns 43 percent of the company. The seven members of the BTS group also became multimillionaires. Bang Sihyuk gave them shares worth around $ 8 million each in August. A logical step, because BTS (short for "Bangtan Seonyeondan", in German "Bulletproof Boy Scouts") are not the only band in Big Hit, but the ones on whose success the growth of Big Hit is based.
Against the backdrop of the corona pandemic, it may come as a surprise that a stock that is so dependent on a band is so successful - in a year when the concert and tour industry is largely on hold. On the one hand, this may be due to the chart successes of BTS, which were most recently with "Savage Love" and "Dynamite" for weeks at number 1 on the Billboard Hot 100 charts and were successful worldwide. On the other hand, this success is also due to the fact that Big Hit understands like no other entertainment company how to expand its stars with total marketing - without losing credibility with the fans.
The story of Big Hit started modestly: In contrast to the big K-pop companies in South Korea - SM Entertainment, YG Entertainment and JYP Entertainment - the company is still young. Bang Sihyuk himself first made a name for himself as a producer and songwriter at JYP before founding his own company in 2005: Big Hit Entertainment.
From 2010, Bang gradually engaged and trained the young people who later became his great success project: Kim Namjoon, Kim Seokjin, Min Yoongi, Jung Hoseok, Park Jimin, Kim Taehyung and Jeon Jungkook started their careers in June 2013 under the band name BTS .
Since then, they have been collecting millions of loyal fans around the world with their music, appearances and videos who bear the name "ARMY". These loyal fans are the main ingredient in Big Hits strategy and success. Not only because they spend a lot of money on their stars, but also because they are extremely active in social networks, disseminate content, defend their idols or even organize YouTube videos to set records.
Even at BTS, everything was not smell of roses and beautiful weather from the start. Until the single "I Need U" in 2015 they didn't make it into the top 10 of the Korean charts, in 2014 they almost gave up - but around 2017 the band made their breakthrough, even internationally. Chart, YouTube, tour and many other records followed. The climax does not seem to have been reached yet. The hit “Dynamite” set a YouTube record with 101.1 million views within the first 24 hours, “Boy With Luv” feat. Halsey and "DNA" have collected more than a billion views. With their world tour in 2019, BTS not only sold out London's Wembley Stadium for two days in a row.
BTS “paved the way”, as many ARMY like to say. They paved the way to the West and around the world for other K-pop bands and for Korean cultural products in general. This story has been told many times. What wasn't so much in focus is Big Hit's business. While it builds on the band's success, it uses it for a business model that goes way beyond that. Big Hit is therefore also successful in the pandemic - although or precisely because Bang breaks with many traditional paths in the music industry.
This is also shown by a look at the share prices of Big Hit's three biggest competitors, SM, YG and JYP, which only fell sharply in March and then again in June. Tours had to be canceled due to Corona measures and the uncertainty about the future of the live industry. Since then, prices have recovered. But the live aspect in the music industry plays a big role. Also for big hits.
Money should be able to flow even without the direct involvement of the stars
In the semi-annual “Corporate Briefing with the Community” in August, Bang Sihyuk discussed the canceled tour. Then Big Hits Global CEO Lenzo Yoon (or Yoon Seokjun) spoke about the strategy to become more independent from such uncertainties. He calls this strategy "Artist Indirect Involvement Business".
BigHit has recognized that the capacities for music and video content or marketable experiences such as concerts and shows are limited if you can only fall back on one band or seven young men. Scaling across more artists has started big hit. It raises its own stars and has bought into other companies. The business is arduous because the new brands have to be built first. That's why Big Hit exploits every kind of content and every opportunity to market a successful act to the last.
Shortly after taking office in spring 2019, Yoon said in an interview: "Even if you only sell a single drop of water, it is important to think about how you can add even more value to this drop." He was referring to the fan -oriented alignment of his company. Every commercial decision should also be for the benefit and pleasure of the fans. This is what the pathetic company slogan stands for: "Music and Artist for Healing". Conversely, however, it also means that every drop of content produced by a big hit is monetized as much as possible.
This “Artist Indirect Involvement Business” has been greatly expanded. According to Big Hit, it only made up around 20 percent of total profits in 2017. In 2019, the share was 45.4 percent. The share is likely to have increased due to the current situation, with a profit of around 38 million euros in the first half of 2020. But what areas does this "indirect artist involvement" include exactly?
Big Hit Entertainment markets all aspects of its stars
Gaming. In 2019, Big Hit brought out BTS WORLD with the company Netmarble, which also owns around 25 percent of Big Hit, a game that tells a fictional story about BTS and lets users master levels in a kind of card game. The player slips into the role of the manager. There are of course also in-app purchases. The game has its own soundtrack and works with previously recorded photos, videos and voice sequences. There is also the BTS UNIVERSE STORY, a game that makes itself even more independent of the real BTS stars: an interactive storytelling game with recognizable drawings by the band instead of photos.
Books and reading. Big Hit already had experience with drawn band members with their Webtoons (a kind of digital comic). With "Save Me" a fictional story about the lyrics of BTS was published in 2019. Big Hit has its own publisher, Smeraldo Books, which, in parallel with Webtoon, published books containing the thoughts of the characters from the music videos. In addition, the band's lyrics can be bought in full as high quality books. Recently there has also been a number of Korean textbooks: “Learn! Korean with BTS ”. These are illustrated with cute animated versions of the stars. What leads to ...
TinyTans: These are the names of the small alter-egos of the BTS members. These lead a complete life of their own, do not age and also have no conscription like their real role models. You enter into your own advertising collaborations (for example with a Korean fabric softener) and, most importantly, you have endless rows of merchandise products. Big Hit actually had something like that, but as part of a ...
Licensing: With Line Friends. Line belongs to Naver (loosely called “the South Korean Google”), its main product is a messenger service. This has its own cute characters, which were originally used like emojis as a reaction when chatting and now form their own merchandise world as Line Friends. This business was expanded in 2017 to include BT21: cute creatures created by the BTS members - all documented on video. Products based around these little characters are great sales successes. You can see them in many variations especially when the band is in a big city for a concert. In addition, these characters also have their own mobile game, including possible in-app purchases.
Further licensing and brand collaborations include cosmetics (VT Cosmetics), sports equipment (formerly Puma, now FILA), smartphones (Samsung BTS Edition), food (Starbucks products, Baskin Robbins ice cream), jewelry (Stonehenge) and a few others. In some cases the band is involved in the advertising campaigns, but for the most part the lines are self-sustaining.
Big Hit wants to use an app to become a one-stop shop for all K-Pop fans
At the heart of the Big Hit cosmos is the “Weverse” app, developed by the Big Hit subsidiary beNX. It should be the one-stop-shop for all K-Pop fans, so far beyond the BTS-ARMY. Big Hit wanted to make itself independent from other players from the start. It started with producing its own variety shows with BTS ("Run BTS", "In the Scoop", "Bon Voyage") and then selling them to TV stations instead of submitting to the rules of their shows.
Since the end of 2019, Big Hit has been working on saying goodbye to social networks, retailers and internationally from the big music labels. In the Weverse app, the stars can post content themselves, interact with fans or sell premium videos. Big Hit is attacking the V Live app, which offers exactly these functions and which a large number of K-Pop stars use to keep in touch with their fans.
Only when it comes to live streams scheduled at short notice is V Live a little ahead of the curve. BTS often switch to YouTube. The shop integrated directly into the Weverse app is also very lucrative. Fans can not only buy premium videos, but also merch products and concert tickets for digital or real events.
In the future, when the postponed BTS stadium tour can take place, it should also be possible not to have to queue for concert merchandise, but to buy it beforehand via the app and then simply pick it up on site. Anyone who has ever been to a BTS concert knows what a relief it is for the fans. Big Hit also saves its own pop-up stores that would otherwise be set up in central locations in the tour city.
In addition, the fan light sticks (many K-pop bands have specially designed light sceptres that are swung brightly at concerts) can be synchronized via WeVerse so that they shine in color at the right moment. This has already been tested for BTS on two occasions. So far, three virtual pay concerts have taken place on Weverse - with great success. “BangBangCon The Live” in June had 756,000 users from 107 countries. 746,000 merchandise items were sold. "BTS ON: E" is said to have had more than a million viewers over two days.
As of August 2020, the Weverse app had 10 million downloads worldwide. The long-term goal of the app is to attract the stars of other companies to the platform - and that is already starting to work out. Big Hit has already taken a big step with Weverse: To take over all areas of the business itself and to determine the relationship with the customers itself. This recently also included the Weverse “Magazine”, which is also intended to replace journalistic reporting.
Bang Sihyuk told Fast Company in 2019 that he doesn't read many books by business leaders and CEOs, but that he recently saw something he liked from Jeff Bezos: Bezos says he is obsessed with the well-being of his customers. And nothing else makes a big hit: It always focuses on content and fans. The fact that one always finds new ways to use their solvency remains unsaid.
On November 20th the album “BE” and the new single “Life Goes On” were released - a hopeful blanket for the time in lockdown. After 11 hours she had around 40 million views. Looks like a new record.
External content not available
Your privacy settings prevent the loading and display of all external content (e.g. graphics or tables) and social networks (e.g. YouTube, Twitter, Facebook, Instagram etc.). To display, please activate the settings for social networks and external content in the privacy Settings.
- Are half Asians hot 1
- Should there be a wheelchair museum
- Do you have a life plan
- How do you train your children on the toilet
- What made you smile or cry today?
- When gay comes
- Where should I live in Harlem or Brooklyn
- Old age brings ugliness and helplessness
- Can deployed soldiers make phone calls
- Works LDR 1
- What are the latest rules of cricket
- What is the biggest big ship canal
- Who ruined Yusuf Pathan's career
- Are gluten-free products healthier?
- What is an apprenticeship in Germany
- Most British say bloody
- A hijab is very important in Iran
- Why do we need a project
- How important is political correctness
- How could a country achieve currency stability?
- Can Muslims celebrate Holi and Diwali
- What are conservative values versus liberal values
- Eating GHEE is healthy or unhealthy
- No contact works