Blackpink and BTS are both globally influential music groups that bring huge profits to entertainment companies. However, when contracts expire, if they cannot retain key artists, companies may face many risks.

Entertainment companies struggle when they lose key artists. Photo: X.

YG, HYBE, JYP are all giants of the Kpop entertainment industry, each company owns groups with strong influence, and is also responsible for the majority of the company’s revenue.

Although there are still many artists working under them, they are still not capable of helping the company grow as strongly as when Blackpink, BTS or TWICE were present.

Therefore, when the contract expires, if the company does not offer benefits commensurate with the position of each group to retain the “hen that lays the golden eggs”, in the future it may face many risks.

Loss of revenue

BTS, whether working as a group or solo, brings huge profits to HYBE. Photo: HYBE.

The departure of a key artist can lead to a decrease in album sales, directly affecting the company’s main source of income. This can be seen through BTS’s impact on HYBE.

Even though BTS is not currently active as a group, the income from the million-copy album sales of members such as Jimin, Suga, and V has contributed to helping HYBE reach a revenue of 537.9 billion won in the third quarter. Prove that if Losing BTS, the group will suffer heavy losses.

Reduce company value

It can be seen that a company owning artists with strong influence and high public recognition is a factor that helps enhance the company’s image to become more widely popular. From there, promoting the ability to attract investors, increasing the company’s value in the market.

Therefore, the loss of a key artist could lead to a decrease in fan base, reducing the company’s market share and influence in the fiercely competitive K-pop entertainment market.

Stocks plummeted

In addition, if the company loses a key group, it may face a sharp decline in revenue from tours, fashion contracts, and the risk of stocks plummeting.

If they lose Blackpink, it will be difficult for YG to find a new group to replace them. Photo: YG.

A typical example can be taken as the current situation of entertainment company YG. Although there is no official information about Blackpink’s contract, the continuous rumors that the members will not renew their contract have caused YG to struggle as the stock price continues to plummet.

This proves that Blackpink has a great influence on the company and in the future, if the group really disbands, YG will certainly have to face a situation worse than the present.

It’s difficult to create alternative music groups

Besides, if the “golden egg” is lost, it will be difficult for the company to create a new artist to replace it. Because it is not easy to train a group with a talented lineup to achieve the same level of success as the old group.

To meet the challenge, the company may need to focus on investing heavily in developing and promoting new artists, which requires flexibility and innovation in its development strategy.

In short, the loss of key artists in the Kpop industry not only affects revenue but also poses significant challenges in terms of reputation, development strategy and image management for entertainment companies. mind.

Faced with these challenges, innovation and the ability to adapt quickly become decisive factors for the success of businesses in this industry.