BTS as Partial Owners: Transforming the K-Pop Landscape and Beyond
As of August 2023, BTS's status as partial owners of Big Hit Entertainment, now known as HYBE Corporation, signifies a significant shift in the dynamics of their relationship with the company. This development has far-reaching implications for the group's financial stake, creative control, and long-term partnership, while also setting a precedent that could impact the K-pop industry as a whole.
Financial Stake
By becoming partial owners, BTS members have a direct financial stake in the company. This means they will benefit from the overall success of HYBE and its various ventures, potentially increasing their profits. The group can now explore new revenue streams, including merchandise, concerts, and potential new projects, further solidifying their financial independence.
Creative Control
Ownership can also grant the members more influence over their artistic direction and business decisions. This may lead to greater autonomy in their music production, marketing strategies, and overall brand management, allowing them to make informed decisions about their future projects and collaborations.
Long-term Partnership and Commitment
This move can be seen as a commitment to a long-term partnership between BTS and HYBE. It indicates that the members are invested in the company's future and are likely to remain associated with it long after their active performance years. This strategic alliance will benefit both parties, ensuring continued support and innovation in the K-pop industry.
Industry Impact and Trends
Having artists as owners could set a precedent in the K-pop industry. Other groups may be encouraged to seek similar arrangements, leading to a more artist-centered business model in the entertainment industry. This could transform the landscape of the music industry, giving artists more control and ownership in their careers.
The transition of Big Hit Entertainment to a public company is another significant development. As of now, Big Hit is not a public company, but it has filed for an IPO, planning to list on South Korea's KOSPI. The seven members of BTS each received 68,385 shares, totaling 478,695 shares, which is a substantial amount, even though it is far less than Bang Si Hyuk, the company's founder.
Although each member's shares are worth at least $8 million USD now, these values can easily reach upwards of $12 million as the company goes public. This transformation will heavily rely on maintaining a public-friendly image, as any negative scandal can significantly impact the stock prices and the company's overall reputation.
Additionally, Big Hit has been acquiring and becoming majority shareholders of multiple companies, including labels, brands, and artists, to create a comprehensive "Big Hit Ecosystem". This system includes numerous brands and companies, including Big Hit, TOMORROW X TOGETHER, TXT, Pledis Entertainment, Seventeen, NU'EST, and Source Music. Collectively, these artists have dominated South Korea's Gaon album charts, accumulating over 50% of all album sales both physically and digitally.
Overall, BTS's ownership stakes and Big Hit's move towards a public company will likely continue to reshape the K-pop industry and set new standards for artist-led entrepreneurship and control.