Despite the unfair profit distribution, there are hundreds of trainees that audition for this company every year.
The proportion of income distribution between artists and their agency is always a hot topic on the social forums. The list below indicates the profit allocation ratio of 5 big Kpop entertainment companies in the present. You will immediately realize which company is accused of misappropriation and blood-sucking its artists.
YG (BigBang, Winner, Black Pink, iKon,…)
Contract years: 7 years
Physical sales: Agency(50%), Artist (50%)
Physical sales renewed: : Agency(30%), Artist (70%)
Events: Agency(40%), Artist (60%)
Overseas promotions: Agency(50%), Artist (50%)
* Dividing income even in circumstance of not reaching the break-over point.
YG entertainment is considered the most gracious agency of Kpop. Besides the continuously delayed comeback, YG always gives the best working condition for their artists, which is evident as profit almost distributes in the proportion 50:50. Artists get the higher percentage than their agency in the revenue from event activities and physical sales. Moreover, YG artists have an enjoyable and high individual freedom life
Big Hit (BTS)
Contract years: 7 years
Physical sales: Agency(50%), Artist (50%)
Physical sales renewed: : Agency(30%), Artist (70%)
Events: Agency(50%), Artist (50%)
Overseas promotions: Agency(30%), Artist (70%)
* Dividing income even in circumstance of not reaching the break-over point.
Apart from YG, Big Hit can also be considered as an impartial company referring to the money issue. The enormous revenue Big Hit earns from BTS is obviously demonstrated by the boy group. All of the members receive the equivalent income to their effort. BTS have a lot of overseas promotional activities; therefore, the proportion 30:70 is certainly profitable for each member.
JYP (Got7, TWICE, Suzy,…)
Contract years: 7 years
Physical sales: Agency(50%), Artist (50%)
Physical sales renewed: Agency(30%), Artist (70%)
Events: Agency(60%), Artist (40%)
Overseas promotions: Agency(50%), Artist (50%)
* Dividing income even in circumstance of not reaching the break-over point.
Though not being a major player compared to SM or YG, JYP always distributes their income equally. JYP artists receive a half of total profit for almost every activity.
FNC (CNBlue, AOA, FT Island,…)
Contract years: 7 years
Physical sales: Agency(60%), Artist (40%)
Physical sales renewed: : Agency(60%), Artist (50%)
Events: Agency(60%), Artist (40%)
Overseas promotions: Agency(50%), Artist (50%)
* No income division in circumstance of not reaching the break-over point.
Apart from overseas promotions, almost other activities of FNC are divided in the proportion 60:40. Nevertheless, if artists do not reach the break-over point, income will not divide as agreement. This is one of the contract terms that makes FNC artists distressed. AOA confessed that they hadn’t been receiving any settlement for 3 years after their debut as their income didn’t reach the FNC’s break-over point.
SM (EXO, Red Velvet, SNSD, Super Junior, SHINee, NCT,….)
Contract years: 7 years
Physical sales: Agency(95%), Artist (5%)
Physical sales renewed: Agency(90%), Artist (10%)
Events: Agency(60%), Artist (40%)
Overseas promotions: Agency(30%), Artist (70%)
* Dividing income even in circumstance of not reaching the break-over point.
Presently, SM still remains in their position as the most unfair profit allocation in the entertainment industry, while physical sales are divided in the proportion 95:5. Other activities are also distributed in the ratio 70:30. It is clear that their idols don’t receive their deserving salary to their labor effort. As the evidence, in the history of SM, many idols stood up for their justice such as DBSK, Kris, Luhan, and Tao.
Despite being the biggest entertainment company in the Kpop industry, SM entertainment company is always condemned for their rigid profit distribution that has made their idols decide to file a lawsuit against their own agency. However, nobody can deny the fact that SM idols are nearly always famous. This is the reason why this company has hundreds of trainee participate auditions, regardless of its notoriety.
