It is without a doubt, that K-Pop has made it’s mark on the international music scene. Super Junior’s catchy tracks, EXO’s coordinated dance moves and SHINee’s loveable boy-next-door image have defined hallyu or the Korean Wave. However, behind the record breaking album sales, sold-out world tours and countless fandoms (fan clubs), k-pop is undoubtedly a solid and profitable business.
S.M. Entertainment, one of the three largest record label and talent agencies in Korea, has made brand names of its artistes by being the first Korean label to establish overseas partnerships. Furthermore, S.M. also has a finesse with resolving issues involving music piracy, by fine-tuning its revenue streams from album sales to include price-reduced online music, artiste product endorsement and involvements in musicals.
Established in the 90s and currently earning a revenue of $166 million, S.M. definitely knows what it’s doing, and is clearly good at it. S.M.’s formulaic approach to achieve success for its artistes is strategically aimed at massive traditional and new media exposure, merchandising and overseas engagements with international fans. By understanding the changes in times and technology, as well as by acknowledging the influence of foreign fans, S.M. has and will continue to amaze the world with its music.
Tie in with Song Zewei’s Blog.
Citations:
1. http://www.forbes.com/sites/forbesasia/2013/07/31/koreas-s-m-entertainment-the-company-that-created-k-pop/
2.http://www.officiallykmusic.com/wp-content/uploads/2013/03/130324SuperShow.jpg
Yes SM is indeed a very profitable company. But I feel like there are some ethical issues right? I heard that those Korean singers need to do intensive training everyday, they don’t get enough sleep and also they don’t get paid really well. Is that true?
Hey Kevin!
The logic behind intensive training before debut is to ensure that the artistes are fully committed to the idea of becoming a performer, since ultimately the stresses of intensive training will not weigh as much as the pressures of the media and society after debut. Pay wise, the groups may not earn a lot at the start, but they gradually earn more after several years of being in the business. SM Entertainment, like other normal profit based companies, earns money from these performers, and the artistes get paid like salaried workers. Based on my knowledge, groups like Super Junior go on world tours to create personal income as well.
Oh I see. So in this case it’s not that bad then. I think you are right, although the training gives them a lot of pressure, but this is a way to ensure that they can do better after debut.Hard work always pays off. Interesting post 🙂
Thanks! Basically, we can treat SM Entertainment like a regular for-profit organization and the artistes as salaried workers. There have been some disputes, but there are bound to be disagreements between management and staff from time to time. Most importantly, the artistes still manage to pursue their passions and we (the fans), remain supportive and enjoy the music! Cheers 🙂