Big Hit Entertainment, the mastermind behind the surmounting success of the K-Pop band BTS, is designing their own music-streaming platform. According to The Korean Herald, the agency has teamed up with the top local game developer, Netmarble.
Recently, this association collaborated to launch a mobile game called BTS World, featuring the K-Pop boy band.
The organisation has hinted that the new streaming site will not be dedicated entirely to BTS. However, the band will be releasing new songs for the launch.
In a conversation with The Korean Herald, an investor commented,
“The two firms have started development work as a venture project. The platform is targeting global users around the world.”
In addition, the new service may also feature podcasting services. Unfortunately, neither of the two conjoining parties have confirmed a date for the launch of the music platform.
“The two firms will continue to analyze the marketability of the new platform before its official launch. They would not rush,” he added.
The matter was also confirmed by another industry source, on account of anonymity said,
“Big Hit has been seeking to enter the music distribution business as part of its efforts to diversify revenue sources, which are now largely dependent on BTS. Operating its own platform may help reduce some commission fees paid to distributor partners, but more importantly, that would help Big Hit gauge its own brand power with the general public, not just BTS fans.”
News of the platform came as investors’ increasing attention to the extended partnership between Big Hit and Netmarble.
Big Hit founder and chief producer Bang Si-hyuk and Netmarble CEO Bang Jun-hyuk are relatives who have closely supported each other since their early days. In 2014, Netmarble acquired a 25.2% stake in Big Hit, becoming its second-largest shareholder after Bang Si-hyuk, who holds 43.1%.
Big Hit Entertainment accomplishments
Currently, Big Hit distributes BTS songs through separate partnerships with distributors. In South Korea, it has signed a deal with SK Telecom’s iRiver for local platforms like Kakao’s Melon and KT’s Genie, while globally it has partnered with companies like Sony Music-owned the Orchard and Soribada.
In March 2019, Big Hit revealed their operating Profit in 2018 increased 97% from its previous year making a jump of 64.1 billion Korean Won ($56.72 million). They also collected revenue of 214 billion KRW ($189.38 million), a 132% on-year gain. Big Hit’s 2018 net income was 50.2 billion KRW ($44.41 million), up 105% year-on-year.
Big Hit Entertainment exceeded $1 billion in corporate value, a report by Hyundai Research Institute disclosed. The estimate predicted that the private agency’s true valuation is between $1 billion and $2 billion.
Big Hit includes artists like BTS, Tomorrow X Together, and soul ballad singer, Lee Hyun. Impressively, due to BTS’ record-breaking expansion in business, it has received the best record in both the rate of return and the size of business in 2017-18.
If Big Hit Entertainment meets the HRI’s estimate, they would be surpassing, the top 3 K-Pop agencies, S.M. Entertainment, J.Y.P Entertainment, and Y.G Entertainment — in operating profit with 64.1 billion Won, up 97.1% from the previous year.
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