YG IS BACK ON TRACK!
There was a time when people who like kpop knows about the BIG 3 glory: SM, YG and JYP. Especially for YG, as they used to make a lot of money and even surpass SM and JYP. YG get their money from live music and recordings, thanks in large part to Bigbang: The group has been grossing an average of $2.6 million per city on its recent Made world tour. Due to the incredible influence and popularity of Big Bang, YG Entertainment was able to earn quite a bit through the group, such as their overseas tours and concerts in Japan.
However, Big Bang's promotions began slowing down as Yang Hyun Suk, the executive producer of YG at the time, began to shift his focus on the production of 'Mix Nine.' In 2018, Big Bang released their last single, "Flower Road," and stopped group activities. Soon, YG Entertainment began falling behind. YG Entertainment kept its place in the 'Big 3' for the longest time but now has fallen to fourth place in terms of market cap behind HYBE (10.7 trillion KRW), SM Entertainment (1.63 trillion KRW), and JYP Entertainment (1.58 trillion KRW).
In the second quarter of 2020, JYP Entertainment had a market capitalization of 1.35 trillion KRW (~1.2 billion USD), YG Entertainment had a market capitalization of 834 billion KRW (~754.6 million USD), and SM had a market capitalization of 759.8 billion KRW (~687.5 million USD).
Why did this happen? This is because YG's market capitalization was dependent on Big Bang's activities. During the period when Big Bang was actively promoting, it took the top spot in the entertainment world, but over the past four years, YG's market capitalization fluctuated. Although iKON, WINNER, BLACKPINK, and TREASURE were active, it was not enough to fill the role of the big breadwinner like Big Bang in its prime.
Now, with the news of Big Bang's comeback, YG's market cap has recovered to 1 trillion KRW (~838 million USD) in just two days. This means that the market is reacting to YG's reliance on Big Bang's profit ratio.
In the case of HYBE, the company holds large breadwinners such as Seventeen, in addition to BTS. SM Entertainment also known as a company that does not focus on a specific group. On the other hand, YG is an entertainment agency that has a powerhouse in BLACKPINK, but they used to be highly dependent on Big Bang to the extent it recovered its market cap to 1 trillion KRW with just the news of Big Bang's comeback. YG Entertainment's market cap was under 1 trillion KRW for many months before the Big Bang news.
What do you think about this?
0 Response to "YG IS BACK ON TRACK!"
Post a Comment