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Posted by KayRosa AKP STAFF Saturday, December 15, 2018

80% of all K-Pop royalty fees revealed to be taken over by top 5% + iKON's B.I takes #1 spot in earnings

The Korean media out 'JoongAng Sunday' has revealed new data regarding music royalty fees. 

According to Korea's 'Music Copyright Association', the total earning for every song per stream is 7 cents (KRW). The total then gets divided into five different sectors: streaming sites (such as 'Melon' or 'Soribada'), the copyright holder, the writer, the performer (singers, etc.), and record producer. In order, the take-away percentages for each sector are: streaming site 40% (2.8 cents) and copyright holders 60% (4.2 cents), broken into 3 sub-categories of 10% (0.7 cents), 6% (0.42 cents), and 44% (3.08 cents).

In 2017, the top earning individuals from royalties depending on the genre were Teddy (popular music writer), G-Dragon (popular music lyricist), Vanilla Man (popular music arranger), Kim Sung Kyun (classical), Kim Young Dong (folk/traditional), and Kim Bang Ok (children's music).

This year, the top earner in terms of royalties was iKON's B.I, who has achieved a total number of 864,000,000 streams through "Love Scenario". As reported, B.I has once revealed that his earnings were high enough to buy him two foreign cars a month. It was also revealed that he has bought a piece of land in Gimpo to build a new house.

On the other hand, songwriters from older generations have filed lawsuits against the 'Association' for the differences in fees applied to songs for the elderly. For example, in May of 2017, the copyright law had been changed so that karaoke bars no longer have to pay royalty fees for popular trot medleys.

Furthermore, it has been revealed that the top % creators take away 80% of the total profits. The rather uneven distribution has prompted many artists to ask streaming sites to give them a fairer exposure in terms of main page promotions and more. 

  1. G-Dragon
  2. iKON
  3. B.I
  4. Teddy
62 97,527 Share 79% Upvoted

23

Murderfucker Saturday, December 15, 2018 3
Saturday, December 15, 2018

A)

"the total earning for every song per stream is 7 cents (KRW)" -> cents =/= KRW

1 KRW (South Korean won) = 0.09 US cents

- won not cents (image)


B)

"In order, the take-away percentages for each sector are: 40% (2.8 cents), 60% (4.2 cents), 10% (0.7 cents), 6% (0.42 cents), and 44% (3.08 cents)." -> 40% + 60%+10%+6%+44% > 100%

Sales are divided into: music distributor (음원 유통사) 40% (2.8 Won) and copyright holders (저작권자) 60% (4.2 Won)

Copyright holders are divided in ratio: 10% for author 저작가(for example composer 작곡가), 6% for performer 실연자(for example singer 가수) and 44% for music producer 음반 제작자

/10% + 6% + 44% = 60% /

so "gets divided into five different sectors" -> nope - just two (in image blue and yellow color) - the second one is divided into 3 sub-sectors (autor+performer+producer)

EDIT:

Thank You AKP for correcting some of the mistakes in your text - still there are some bugs..

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11

Murderfucker Sunday, December 16, 2018 0
Sunday, December 16, 2018

The revised text was highlighted:

According to Korea's 'Music Copyright Association', the total earning for every song per stream is 7 won (KRW) which is about 0,7 US cents. The total then gets divided into two sectors: streaming sites (such as 'Melon' or 'Soribada') and the copyright holder which is also splitted between 3 sub-categories: the writer, the performer (singers, etc.), and record producer. In order, the take-away percentages for each sector are: streaming site 40% (approx 0.28 cents) and copyright holders 60% (approx 0.42 cents), broken into 3 sub-categories of 10% (approx 0.07 cents), 6% (approx 0.042 cents), and 44% (approx 0.308 cents).

Once again thank You for understanding

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0

Arzach95 (Banned) Saturday, December 15, 2018 0
Saturday, December 15, 2018

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-2

RogerTeague (Banned) Sunday, December 16, 2018 0
Sunday, December 16, 2018

Comment has been deleted

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17

emmamadison24 Saturday, December 15, 2018 0
Saturday, December 15, 2018

Wow B.I getting that coin!! Congrats B.I and SOTY!

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10

big_bang_forever Saturday, December 15, 2018 0
Saturday, December 15, 2018

Lool BI getting that bread.. No wonder he did two more comebacks this year and said he has no other hobbies.. He's had the taste and can't let go. Guess I can expect at least 1 full album in 2019

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9

Carlos2000 Saturday, December 15, 2018 13
Saturday, December 15, 2018

This is why those people saying that physical > digital in terms of revenue is completely not updated.

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14

PinKookiE Saturday, December 15, 2018 7
Saturday, December 15, 2018

But it kinda is... You have to be a great songwriter such as B.I to get more revenues from digitals than physicals... anyways tours>>>>>physicals/digitals.

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7

Fantastic99 Saturday, December 15, 2018 3
Saturday, December 15, 2018

Yeah and iKON surpasses all expectations in that because of YG forcing them to tour but still they do make a lot of money.

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1

Carlos2000 Saturday, December 15, 2018 2
Saturday, December 15, 2018

Still on the old age thinking eh? Physical sales are a one time big time thing while digital sales can last for more than years. Mariah Carey already has 60 million dollars for All I want for Christmas, Busker Busker can sleep in a year and will still get revenues because of Cherry Blossom Ending.

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10

Celebration Saturday, December 15, 2018 3
Saturday, December 15, 2018

Depends on who is earning. Physical sales earn company's more, digital earn the creators more. Just saying

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0

lstarnation Sunday, December 16, 2018 0
Sunday, December 16, 2018

depends on the ppd’s. Some still can cash big.

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4

Fantastic99 Saturday, December 15, 2018 1
Saturday, December 15, 2018

Wow. He earns in every catagory as a main, singer+songwriter+producer+composer. Yet he still remains humble and doesn't brag. (kekekee he still wears his sister's watch)

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-2

Indri_hapsari Sunday, December 16, 2018 0
Sunday, December 16, 2018

Sorry , humble r not exist in yg...its just a mask .. yg always known for their superior feelings

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4

Anythingyg Saturday, December 15, 2018 0
Saturday, December 15, 2018

mind you that’s just the first half of the year y’all. RICH KING! Haters choke.

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3

HeyHoonie Sunday, December 16, 2018 8
Sunday, December 16, 2018

This is why I love YG, their songs are good and public friendly, and most profits go to the their pocket since they create their own music

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0

fantasticlau Sunday, December 16, 2018 7
Sunday, December 16, 2018

Only males in YG create their own music

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1

ratmonster Sunday, December 16, 2018 5
Sunday, December 16, 2018

2ne1 created their own music... blackpink are just lazy and crap..

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-1

Anythingyg Sunday, December 16, 2018 0
Sunday, December 16, 2018

n

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3

eager_beaver Saturday, December 15, 2018 2
Saturday, December 15, 2018

Those numbers say something about how difficult it is to make money off music in K-pop. A few do well, yes, but most don't.

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4

Jichuchi Sunday, December 16, 2018 1
Sunday, December 16, 2018

This is just for music writers tho. Non-writer idols get way less I guess... And this is just royalties for streaming. Salary from their contract is another thing which comes from concerts, events, tv shows, CF's , Ads. Sponsors give lots of money as well specially big brands.

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1

eager_beaver Sunday, December 16, 2018 0
Sunday, December 16, 2018

True, this is just for music creators, but I would say that it also reflects how income in the industry is more generally divided between the players. I guess it's true everywhere around the world that for every Taylor Swift there are a few thousand artists who barely make ends meet or can't even survive on music full time, so K-pop is by no means unique when it comes to financial struggles. But as a fan of K-pop I of course worry about idols specifically, and I'd dare to say that artists struggling financially in K-pop are more visible than those in other music markets.


One often hears about idols who say they got their first pay check after years of work, and how they went days without a proper meal, yet these very artist constantly perform on shows, release music and put on smiles on their faces when appearing on variety shows. So working poor musicians are not that visible in other music markets, at least they don't talk that frequently about it, but idols quite often talk about working hard (or being signed to an agency without work and income) while not making money. That's the reason why numbers like the ones in this article serve as a reminder of what K-pop fans already know about what idols are going through.

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3

HolyGrailz Saturday, December 15, 2018 0
Saturday, December 15, 2018

Good going for him but I do agree with the elderly being paid for than what they get.

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2

exorcism Sunday, December 16, 2018 4
Sunday, December 16, 2018

All profit is 864,000,000 streams x 7 KRW= 5,922,000,000 KRW= 5,228,267.31 USD

music distributor (음원유통사) 40%= 2,091,306.924 USD

copyright holders (저작권자)60%= 3,136,960.386 USD

10% for author (저작가)= 522,826.731 USD

3 writers (B.I, Bobby, Mot Mal): 174,427.557 USD each

6% for performer (실연자)= 313,696.0386 USD

7 singers (ikon members): 44,813.7198 USD each

44% for music producer (음반제작자)= 2,300,437.6164

B.I, Millenium, Seung: 766,812.5388 each

So, B.I made..

174,427.557+ 44,813.7198+766,812.5388= 986,053.8156 USD


Ps. I'm not sure what percentage is YG taking from all of this

also, I'm not sure if they distribute it equally like that.

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1

zero_red Sunday, December 16, 2018 2
Sunday, December 16, 2018

the article said that they make 0.7 krw (7 cents krw) not 7 krw. So the numbers look like this:

Total made: 533, 200 usd

40%: 213,280

10%: 53, 200

6%: 31,992

44%: 234, 608

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0

exorcism Sunday, December 16, 2018 1
Sunday, December 16, 2018

Nope. It's 7KRW per stream. It even says that in the picture.

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0

zero_red Monday, December 17, 2018 0
Monday, December 17, 2018

But it said 7 cents krw in the article? I'm confused. I cant understand what I read in korean so I didnt pay attention to the picture

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0

Fantastic99 Sunday, December 16, 2018 0
Sunday, December 16, 2018

I don't think they distribute equally like that. There are different classifications for songwriting and producer so because B.I is the main producer and main songwriter, he makes a greater percentage. Like for writing, Bobby pretty much just writes his rap and helps with B.I's some. But for singers, its probably all equal.


YG probably has some type of cut as an executive album producer but I don't think its over like 30-45%

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1

Fatimaaxo Tuesday, December 18, 2018 0
Tuesday, December 18, 2018

B.I A WHOLE GENIUS HE BETTER BE COLLECTING THAT NICE PAY

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1

ain_ali Sunday, December 16, 2018 0
Sunday, December 16, 2018

our quail leader . rich daddy. 😂😂

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1

zero_red Sunday, December 16, 2018 0
Sunday, December 16, 2018

Stream on spotify y'all. He would've made much more. On melon he made 533,200 usd on spotify with the same amount of streams it would have been between 5,160,000 - 7,224,000 usd.

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1

Maneli Sunday, December 16, 2018 1
Sunday, December 16, 2018

🤔 but won is less valuable than cent.

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0

zero_red Sunday, December 16, 2018 0
Sunday, December 16, 2018

It is, for that amount of streams the total amount made is pretty small compared to what could be made on spotify. From this model love scenario made (0.0062 * 860,000,000 = 533,200 usd). On spotify the same amount of streams would have made between 5,160,00 - 7,224,000 usd since spotify pays 0.006 -0.0084 usd. Per stream.

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1

Anythingyg Sunday, December 16, 2018 0
Sunday, December 16, 2018

also see y’all dec31 with what’s hopefully ANOTHER number one single

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0

lesbana (Banned) Sunday, December 16, 2018 0
Sunday, December 16, 2018

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0

krell Sunday, December 16, 2018 1
Sunday, December 16, 2018

MUSIC ROYALTIES Value (MONEY) can be IMPRESSIVE in the size of it. The VALUE of that with regard to THE BEATLES (UK Pop Music) is of STAGGERING SIZE. And, of all people, MICHAEL JACKSON did 'CASH IN' on THE BEATLES songs by first buying and then selling those 'song rights' for like around $500 MILLION USD Profit (at least) over a 30 Years period.

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0

krell Sunday, December 16, 2018 0
Sunday, December 16, 2018

https://en.wikipedia.org/wiki/Sony/ATV_Music_Publishing

Begin Quoting -->
Entertainer Michael Jackson purchased (BEATLES songs) ATV Music in 1985 for $47.5 Million USD ...
In 2016, SONY (JP) bought the Jackson estate's 50% stake in (2016) Sony/ATV for $750 Million USD.
End Quoting -->


THAT ($50 Million USD vs. $750 Million USD) should give everyone a CLUE as to the VALUE of SONG RIGHTS
and MONEY involved.

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0

MONSTA_X_POWER Sunday, December 16, 2018 0
Sunday, December 16, 2018

I wonder how much Wonho and Jooheon are making

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0

Michella_25 Saturday, December 15, 2018 0
Saturday, December 15, 2018

iKon come to states and build your house

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-1

EXID_is_the_EXIT Sunday, December 16, 2018 0
Sunday, December 16, 2018

Good luck in the next ones

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-27

Stopudelulu Saturday, December 15, 2018 8
Saturday, December 15, 2018

and when will he pay his parents debt since he is making maney? But i bet scammer will never care abt other people. Scammer blood sure runs in the family

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Anythingyg Sunday, December 16, 2018 0
Sunday, December 16, 2018

Girl his parents don’t have debt know the situation please you look dumb

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1

kizaru_hijin Sunday, December 16, 2018 0
Sunday, December 16, 2018

you always manage to prove your stupidity no matter what you write an with that, always manage to bring shame to bts and real armies for even pretending to be an army...

and seeing how you shit your pants to reply to me since i told you, i know which main accounts belong to you, its obvious, that you truly are one of the 2 biggest haters this site knows, who both have each multiple accounts to support and upvote yourself, while using your other accounts to seem nice, just for some likes...

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0

RyenLux Sunday, December 16, 2018 5
Sunday, December 16, 2018

Gosh, delulu, we don't give a crap about your k-pop hating tendencies. Go take your meds, and please be sure to take your BFF kizaru with you. Being a k-pop hater like you, you two are made for each other.

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