What might 2024 look like for the leading companies spearheading the K-pop wave?
From BTS and BLACKPINK to SEVENTEEN, NCT, Stray Kids, ATEEZ, and the astonishing global fandom of boy groups, to the achievements of 4th generation girl groups like NewJeans, IVE, aespa, and LE SSERAFIM, and the meteoric rise of debutant groups. With a dense lineup from representative groups to promising newcomers, K-pop has expanded its territory globally.
With such a dazzling lineup, the performance was equally shining. K-pop conquered the American Billboard charts, and this year's 'Billboard Music Awards' added four new K-pop categories, acknowledging K-pop's expanding base in the U.S. Since last year, the upward trend in album sales has continued, and this October, the '100 million album era' has been warmly welcomed, enjoying a boom.
Entertainment companies too have reaped bountiful results. The activities of the 'Big 4' agencies representing K-pop - HYBE, SM Entertainment, YG Entertainment, and JYP Entertainment - are expected to continue into the new year. Let's review the stars and achievements that illuminated the music industry in 2023 and examine the prospects for the entertainment sector in 2024.
YG: Overcoming the Worst with BLACKPINK, Will BABYMONSTER Become Key IP?
YG continued to face challenges following last year. Contracts with iKON ended, and TREASURE's Bang Yedam and Mashiho left the group. With TOP, Taeyang, and Daesung, the core of BIGBANG, G-Dragon also did not renew his contract with YG. The departure of BIGBANG was a significant event that could shake YG's very identity. The recent group activity contract renewal with BLACKPINK, which accounts for over half of YG's revenue, has averted the worst-case scenario.
YG launched its bet with the newly debuted girl group BABYMONSTER in November. The goal is to nurture them as the key IP following BLACKPINK, marking YG's first new girl group in seven years. While their debut song 'Batter Up' didn't make a significant impact on domestic charts, its music video broke records for the fastest 100 million views for a K-pop group debut song on YouTube, showcasing their powerful global fandom.
However, YG still has challenges to overcome, particularly the individual exclusive contracts of BLACKPINK members. The industry speculates that BLACKPINK may conduct individual activities with different companies.
JYP: Strengthening Localized Strategy with Stray Kids Leading the Charge and a Parade of Debutants
JYP Entertainment (JYP) will continue to strengthen its aggressive localization strategy into 2024, leveraging it as a key to its global competitiveness. From the fourth quarter of 2023 into the next year, JYP plans to debut four localized rookie groups. After the enormous popularity of groups like NiziU from Japan's 'Nizi Project' and Boy Story from China, JYP aims to replicate this success with new groups across different regions.
Recently, the boy group NEX7, born from the 'Nizi Project' Season 2 in Japan, was unveiled, and the 6-member rookie group, VICHUR, formed through the 'A2K' project in partnership with the U.S. music label Republic Records, is set to debut. Additionally, a new boy group project, Project C, is slated for launch in China, and a boy group formed from the members selected through the SBS show 'LOUD' is scheduled to debut sequentially by the second quarter of the next year.
Currently, JYP's key artist, Stray Kids, has been successfully making inroads in North America. They've achieved three consecutive number-one spots on the U.S. 'Billboard 200', marking a first for a K-pop artist, and have recently expanded their influence in Europe.
After recording its highest-ever earnings this year, JYP's outlook for next year also seems promising. The record is expected to grow further next year with contributions from large-scale world tours by artists like TWICE and successful solo concerts by Xdinary Heroes. There's also much anticipation for DAY6's return post-military service.
Moreover, with new contracts signed with Republic Records and Live Nation, among other North American business partners, JYP's business stability and potential for revenue growth are seen to have improved significantly.
