A popular online community post showing the 2019 sales and profits from the biggest K-pop labels has gained attention and sparked netizen discussion.
The post lists the earnings in 2019 from South Korea's biggest labels such as YG Entertainment, SM Entertainment, JYP Entertainment, and Big Hit Entertainment. Although there were formerly the powerful 'Big 3' labels, Big Hit's immense rise due to BTS's popularity has allowed them to be included for the new 'Big 4'.
The post reads as follows:
SM: 658 billion KRW (543 million USD)
Big Hit: 588 billion KRW (485 million USD)
YG: 265 billion KRW (218 million USD)
JYP: 155 billion KRW (128 million USD)
Big Hit: 98 billion KRW (80.1million USD)
JYP: 43 billion KRW (35.5 million USD)
SM: 40 billion KRW (28 million USD)
YG: 2 billion KRW (1.6 million USD)
Since Big Hit Entertainment is a private company, they didn't release their net profit but they're estimated to have the highest profit in 2019 followed by JYP, SM, and YG.
Big Hit: 79 billion KRW (65.2 million USD) – Profit
JYP: 32 billion KRW (26.4 million USD) – Profit
SM: 16 billion KRW (13.2 million USD) – Deficit
YG: 25 billion KRW (20.6 million USD) – Deficit
Overall, Big Hit surpassed many of the other labels by a very large margin in all areas with the exception of sales in which they trailed SM by a small margin. However, SM and YG took deficits in their profit statements. Although JYP's sales were the lowest of the Big 4, their net profits were the second-highest meaning they run a very efficient business.
"How is SM at a deficit?"
"I can't believe just BTS brought in 79 billion KRW in profit."
"I'm amazed at BTS."
"It's no surprise that YG is at a deficit but why SM?"
"JYP is excellent in business. Low sales but high profits."
What do you think of these numbers?