Various Korean media outlets are talking about the reported deep concern YG and Yang Hyun Suk, the head producer of YG Entertainment, have about BLACKPINK as the group near their contract expiration date.
Currently, apart from BLACKPINK, YG Entertainment lacks other artists with distinct achievements, facing a situation similar to some game companies’ “one-game risk.”
BLACKPINK dominates a considerable portion of YG Entertainment according to sales reports. Yang Hyun Suk is said to be deeply concerned about BLACKPINK’s irreplaceable status.
According to Hyundai Securities’ analysis, BLACKPINK’s contribution to YG Entertainment’s operating profit in 2023 is expected to be over 85%. BLACKPINK is predicted to handle 75% of ticket sales and 63% of album sales for this year for the agency.
BLACKPINK’s world tour continues until August. As their contract with YG Entertainment expires in August, the company is currently focusing on the re-signing process.
Recent reports of BLACKPINK member Lisa not renewing her contract caused YG Entertainment’s stock price to drop by nearly 8% at one point. The heavy reliance on BLACKPINK by YG Entertainment is considered excessive compared to other entertainment companies and a huge risk. Yang Hyun Suk is also said to be well aware of this issue.
Kim Hyun-yong, a researcher at Hyundai Securities, said, “Although BLACKPINK is struggling alone, YG Entertainment is the only one among the ‘Big 4’ entertainment agencies expected to achieve year-on-year growth in operating profit in the second half of this year.” He added that Treasure’s concert scale should expand, and Baby Monster should solidify their position in the market to achieve results similar to their competitors.
Park Soo-young, a researcher at Hanhwa Investment & Securities, stated, “There is a possibility that the lack of diversity in IP in the future could undermine investor confidence in YG (Entertainment).”
BLACKPINK debuted on August 8, 2016, and the members’ contracts will expire in less than two weeks, investors are on high alert waiting for the news as YG kept a tight lip on the matter, the fact that the agency has yet to make an official announcement regarding BLACKPINK’s renewal or lack thereof, it indicates that the negotiations process is not going smoothly.
Source: (A)
Do you think BLACKPINK will renew their contracts with YG?
Wow. ALL of its resources? Makes me wonder how did they mess up so badly that they can’t persuade all of the girls in the most successful girl group in the world…to stay in the most successful girl group in the world. They’ve dropped the ball hard.
I’m actually surprised they are trying so hard and not planning on falling back on the catalog as is. Seemed like that was the plan there for a minute while they refrained from drumming up any momentum at all FOR YEARS. Seems like you strategize way before you get to this point.