K-pop fans have always been familiar with the Big 3 in the K-pop industry as SM Entertainment, YG Entertainment, and JYP Entertainment. Reports have it that the public perception has already changed about the traditional Big 3.
YG was out of the list and its coveted spot has been taken by BTS's label, Big Hit Entertainment. Last year, YG Entertainment's financial and social status dropped exponentially due to the series of scandals its artists and even its founder have been involved in.
Big Hit Entertainment has soared in popularity and revenue in the past two years, mainly because of its main act, BTS. The South Korean media now predicts that Big Hit will totally occupy YG Entertainment's spot in the Big 3 and may possibly surpass SM Entertainment and JYP Entertainment's revenue this year.
In fact, Bit Hit outranked JYP in terms of revenue in 2018. Chosun Daily, previously, revealed the top 4 entertainment company's revenues in 2018.
Big Hit took the No. 3 spot next to SM and YG and kicked JYP to fourth place. However, it is worthy to note that the list was released before YG was snared with scandals in early 2019.
Though Big Hit is not a publicly-traded company, recent investments into the company put it in valuation higher than the market capitalizations of SM, JYP, and YG. The label has also voted as the best investment company of the year for 2018 at the Korea VC Awards.
Meanwhile, Sports Seoul also noted that, according to current market capitalization, the entertainment industry will be dominated not only by three companies in 2020 but by four. The new Big 4 will be SM, JYP, Big Hit, and CJ E&M.
Sports Seoul explained that, though CJ E&M does not directly manage artists, it operates as a method of equity investment and gradually expands its influence and connections with several subsidiaries. The company also has the ability to produce music groups, train artists, organize events, and expand markets to different countries.
In Aug. 2018, Big Hit Entertainment and CJ E&M announced that they plan to create a joint company. The company, named Belief, is set to debut a group this year.
Netizens, however, have mixed opinions about the new Big 3. According to an article published by Joy News 24, many believed that YG should be out of the Big 3 but others also think Big Hit should not be in this league.
Some argue that Big Hit should not be on the list because it is only BTS, who brought the company to the top. In comparison, the other three companies who have multiple successful groups and solo artists.
