YG’s real crisis…BLACKPINK’s contract renewal “in the fog”, Treasure “negative growth”
YG, which used to compete for first and second place in the industry, is lagging behind HYBE, SM Entertainment (SM) and JYP Entertainment (JYP) in everything.
SM and JYP’s market capitalization is 2 to 2.5 times higher than YG’s, while HYBE has become an incomparable giant.
In the end, the growth of the company’s artists is the key. This is the reason why YG seems anxious. BLACKPINK, which accounted for 92% of YG’s total artist album sales as of the third quarter of last year, has about 5 months left until the end of their contract, but whether or not to renew the contract is in the fog.
It is no exaggeration to say that Treasure, which was considered to be YG’s future, failed when compared to the performance of 4th-generation groups from other agencies. The Second Step: Chapter Two’s first week album sales were only 400,000 copies. This figure is similar to rookie girl groups’ first week album sales. A more serious problem is that it is a negative growth figure as The Second Step: Chapter One recorded 540,000 copies in the first week of its release. This means that the fandom is leaving.
It’s not that there is no winning move. G-Dragon, who still has a strong presence, will soon make a solo comeback. However, it is not enough to take responsibility for all of YG’s sales.
Currently, executive producer Yang Hyun Suk seems to be betting his life on BABYMONSTER’s debut. If BABYMONSTER does not literally hit the jackpot, YG may not be able to achieve stable sales this year.