As YG navigates its current landscape, uncertainties cast shadows over the full-group activities of BLACKPINK, a pivotal entity in the company, and the potential success of the rookie group BABYMONSTER. The departure of artists after fulfilling contract periods adds to the challenges, signalling a need for the company to secure popularity among the general public and expand its fan base amidst a shifting landscape in the industry.
Challenges Faced by BABYMONSTER and Departure Rates
BABY MONSTER, slated for an official debut on April 1st, faces the daunting task of establishing themselves in the domestic market after a period of low visibility. Despite their initial debut with “BATTER UP” in November last year, the absence of key members and limited domestic activities hindered their recognition. However, with their official debut imminent, BABYMONSTER stands at the threshold of their true test, although success remains uncertain.
Comparatively, YG has seen a higher departure rate among its affiliated artists compared to other major entertainment companies. This trend, reaching nearly 70%, is attributed to the perceived “imperial leadership” of Producer Yang Hyun-suk. Instances such as former iKON member B.I’s drug case and 2NE1’s disbandment without member consultation have fueled criticisms against Yang’s leadership style.
Challenges in Maintaining Idol Lineage and Decline in Content Quality
Treasure remains the sole group upholding the idol lineage of YG, albeit with declining domestic popularity and interest, partly attributed to perceived decreases in content quality post-producer Teddy’s departure. Instances such as the reception of Treasure’s song “Bona Bona” have raised concerns regarding the company’s creative direction.
Impact on Financials and Market Perception
The departure of BLACKPINK’s activities and uncertainties surrounding full-group activities have contributed to a colder external perception of YG. Analysts project a significant dent in the company’s financials, with adjusted stock price targets reflecting BLACKPINK’s absence from activities this year. The absence of YG artists in the Melon Chart TOP100 further underscores the company’s current challenges.
In light of these challenges, industry insiders and analysts advocate for a shift away from Yang Hyun-suk’s leadership style towards strategies that prioritize public accessibility and fan base expansion. YG must refocus its efforts on creating music and cultivating attitudes that resonate more profoundly with the public to navigate these turbulent times effectively.
