[Reporter Se-yeon Park, Daily Economy Star Today]
Big Hit Entertainment (Chairman Bang Si-hyuk, hereinafter referred to as Big Hit) continued record high revenues in the first half of 2020, which was the best in history, similar to last year, despite the domestic and overseas performance environment dipped by Covid-19. As the pandemic that has encroached on the global village remains dark, the prospect of resuming the tour in the second half is dark, but Big Hit continues to grow by continuing issues such as the release of a new album by BTS in the fourth quarter based on the ‘Big Hit ecosystem’ that has been carefully completed over the past several years. Is aiming at.
On the 13th, Big Hit released the ‘Big Hit Company Briefing with the Community in the Second Half of 2020′ (hereinafter referred to as the company briefing session) online through the official YouTube channel, and said that both sales and sales performance in the first half of this year continued to grow significantly.
Chairman Bang Si-hyuk first looked back on the situation where he had to completely amend the BTS’s world tour schedule due to Covid-19 in the first half of this year, and emphasized that despite difficulties, “I focused more on the essence of’content’ and ‘fan’ that Big Hit pursues.” As a result, Chairman Bang announced that it generated revenue in various areas such as albums, music sources, online performances, official products, and video contents, recording sales of 294 billion won and operating profit of 49.7 billion won in the first half of 2020. In terms of sales, about 46% YoY and operating profit increased 27% YoY. (* Above K-IFRS consolidated basis, provisional performance before external audit)
Chairman Bang said, “In the first half of this year, Big Hit generated profits not only in albums and sound sources, but also in various areas such as online performances, official products, and video contents.”
According to the Gaon Album Chart in the first half of the year, 40% of the album sales in the top 100 were counted as Big Hit and their rave album. In particular, Big Hit’s explanation is that if you add 4.2 million copies of ‘MAP OF THE SOUL: 7’of BTS, which ranked first in album sales, and 1.2 million ‘Hengarae’ of Seventeen, which ranked second, it reaches 53% of ‘Top 10 sales’.
The forecast for album sales in the second half is also bright. This is because BTS is scheduled to make a comeback with a new album in the fourth quarter. Chairman Bang said, “BTS was not able to tour overseas this year, but it received great attention as much as its influential global movements,” and said, “All seven of the recently released albums are continuing to sell more than 1 million copies.”
“I would like to ask you a lot of anticipation for BTS’ new digital single ‘Dynamite’ on the 21st,” he said. “For the first time here, I will release a new album that the members have been preparing for a long time in the fourth quarter of this year.”
Tomorrow by Together(TXT), which is solidifying its global fandom as a younger brother of BTS, is also ahead of a comeback within this year. In addition, the debut group of the team to be formed through ‘I-land’, a global K-pop artist development program led by the joint venture with CJ ENM, will be selected soon, and the girl group being prepared with Min Hee-jin Big Hit CBO and Source Music will also debut next year.
Regarding the girl group scheduled to debut next year, Chairman Bang said, “This team was selected through a global audition held in 16 cities around the world last year. We can’t reveal much yet, but several girls with their own unique charms I want to tell you in advance that it will become a team and that it will become a global girl group fluent in languages with multinational members,” and “It will become a blockbuster girl group.”
At the same time, Chairman Bang emphasized that “Big Hit is diversifying the portfolio of labels by continuously discovering good artist intellectual property rights (IP), focusing on making good contents with the contents power house.”
Despite the fact that there was virtually no offline activity due to the Covid-19, the secret to continuing good results was listening to the constantly evolving ‘Big Hit ecosystem’. The ‘Big Hit Ecosystem’, which is the essence of Big Hit’s ‘winning formula’, which Big Hit has always emphasized, is a space-time and practical business structure in which an infinite virtuous cycle connects labels, business, and fandom around the platform. Means.
Global CEO Yoon Seok-joon explained, “It was difficult for artists to work offline in the first half of the year, but thanks to the expansion of the IP (Intellectual Property Rights) business and the content branding strategy, we were able to create stable profits and provide new experiences to fans.” The artist’s ‘indirect participatory’ business is a business structure that Big Hit has built for a long time in order to create an environment where artists are dedicated to their creative activities. Global CEO Yoon said that between 2017 and 2019, the share of Big Hit’s artist indirect participation-type revenue more than doubled from 22.3% to 45.4%.
The recently launched BTS character ‘TinyTAN’ and the illustration book ‘GRAPHIC LYRICS’ that expresses the lyrics in pictures, etc., from original IPs such as artists and music to secondary IPs such as characters and worldviews, the key to success was also creating an additional business model based on it.
Big Hit’s own platform, Weverse, which has celebrated its first year of launch, is also taking root in the industry and is regarded as a best practice for customized fandom service. An example of the Big Hit ecosystem that operated as a business structure is BTS’ on-contact performance ”Bangbang Con The Live’ held in June. Global CEO Yoon said, “’Bangbang Con The Live’ was held at Weverse, from concert viewing, ticket and official product purchase, and cheering rod linkage. This is another innovation created within the Big Hit ecosystem.”
In fact,’ ‘Bangbang Con The Live’ recorded 756,000 simultaneous users in 107 regions around the world, making it to Guinness as’the live streaming music concert most viewers have seen’. On this day, Chairman Bang also announced the news of the holding of BTS’ October performance’BTS MAP OF THE SOUL ON:E’, which will be held online and offline.
Contents to be introduced through the combination with different industries were also announced. Korean learning textbook ‘Learn! KOREAN with BTS’ and ‘Mobile Rhythm Game’ where you can enjoy the music of Big Hit Labels artists in a new form, and a game teaser using the worldview of BTS with Netmarble were also released.
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