While BTS has renewed their contract, all eyes are on BLACKPINK's next move.
Amidst the breaking news of BTS's contract renewal, the spotlight is now intensely focused on the subsequent actions of another superstar group, BLACKPINK, who are at the center of another contract issue.
On September 20, Big Hit Music announced a board resolution to renew the exclusive contracts with BTS members RM, Jin, Suga, J-Hope, Jimin, V, and Jungkook. Based on this resolution, Big Hit Music plans to sequentially sign contracts with all BTS members.
Considering the military service commitments of some members, Big Hit Music intends to sign individual and sequential contracts. Members currently serving in the military will complete their service by 2025, the start of the new contract term.
Since their debut in 2013 under Big Hit Entertainment, the precursor to HYBE, BTS has risen to global stardom, topping charts like the US Billboard, UK Official Chart, Japan's Oricon, iTunes, Spotify, and Apple Music. They've also made unprecedented achievements by performing at the three major US music award ceremonies: the Grammy Awards, American Music Awards, and Billboard Music Awards. Given that BTS-related revenues accounted for over 60% of HYBE's earnings last year, this renewal is expected to synergize well with the multi-label system, strengthening the industry's outlook.
HYBE stated, "With the renewal, we look forward to supporting BTS's full-group activities projected for 2025. Both HYBE and Big Hit Music will provide all possible support to further elevate BTS's stature."
On the other hand, another world-class group causing stock market fluctuations due to contract renewal issues is BLACKPINK. As they celebrated their 7th debut anniversary last month, their future moves remain uncertain. Their agency, YG Entertainment, has repeatedly given the vague response of "under discussion."
BTS Renews Contract, But What About BLACKPINK? The Divergent Renewal Paths of K-pop's Top Stars
Especially on September 16, ahead of their Seoul finale concert, rumors about Lisa's non-renewal caused stock prices to waver.
During the Seoul finale concert held on the 16th and 17th at the Gocheok Sky Dome, members' comments sparked discussions and speculations about their future. For instance, Jennie's statement, "This year marks our 7th since debut. Looking back, we wanted to show our best, so we couldn't meet many BLINKs in Korea. We wanted to have the encore finale in Seoul. We'll continue to be the amazing BLACKPINK," led some to speculate about a possible reunion. However, some negative opinions arose when Lisa said, "Thanks to BLINKs (BLACKPINK fans), we could perform in various grand venues. Whether the weather is good or bad, thank you for always supporting and enjoying with us. Thank you for making my 20s shine," which sounded to some like a farewell.
Amidst this, reports on YG's foundational strength are becoming a hot topic. On the 20th, KB Securities stated, "It's time to shift the focus from BLACKPINK's renewal to foundational strength." They also raised the target stock price from 83,000 won to 95,000 won, maintaining a 'buy' recommendation.
Lee Sun-hwa, a researcher at KB Securities, explained, "With BLACKPINK's world tour, their global fandom has solidified, increasing the value of their intellectual property (IP) and indirectly boosting revenues." She added, "TREASURE, now in their fourth year since debut, is starting to expand their global fandom. In the fourth quarter, BABYMONSTER will debut, strengthening the artist pipeline."
She also adjusted the operating profit estimates for this year and next by 18.6% and 19.2%, respectively, and judged, "There's significant market concern about BLACKPINK's renewal and signing fees. However, with the rising IP value of next-generation artists, the intangible asset depreciation resulting from BLACKPINK's renewal won't be burdensome."
