In the competitive market of K-pop, entertainment agencies strategically analyse global markets to expand their reach and revenue streams. The top four agencies—HYBE, JYP Entertainment, SM Entertainment, and YG Entertainment—exhibit distinct patterns in their sales compositions, reflecting diverse approaches to international and domestic market penetration.
HYBE & JYP: Emphasizing Overseas Expansion
HYBE, the powerhouse behind BTS, boasts significant overseas sales, accounting for 63.67% of its total revenue in 2023, amounting to approximately 1.3867 trillion won (around 1 billion USD). JYP Entertainment follows suit with a focus on international growth, with overseas sales constituting 55.72% of its revenue. Notably, JYP’s export revenue surged by an impressive 91% in 2023, driven by the success of groups like Stray Kids and TWICE in global markets.
SM Entertainment: Dominance in the Domestic Market
On the other hand, compared to HYBE and JYP, SM Entertainment stands out for its strong performance in the domestic market. The agency’s domestic sales revenue amounted to about 658.6 billion won (approximately 487 million USD), representing 68.53% of its total revenue.
Despite this focus on the home front, SM’s export sales revenue also saw significant growth, increasing by nearly 25% compared to the previous year, driven by the international success of acts like Aespa and NCT DREAM.
YG Entertainment: Evolving Sales Dynamics
YG Entertainment’s sales chart presents a nuanced picture, with relatively balanced proportions of domestic and export sales. While YG’s export sales accounted for 47.29% of its total revenue, domestic sales revenue experienced a notable surge of 96.33% compared to the previous year. This shift is attributed to YG’s strategic emphasis on the domestic market, driven by artists like BLACKPINK.
Factors Influencing YG’s Sales Dynamics
Popular culture critic Kim Heon-sik offers insights into YG’s evolving sales dynamics. He notes that BLACKPINK’s limited overseas activities may have contributed to the agency’s heightened focus on domestic sales.
Looking ahead, he emphasizes the importance of new groups like TREASURE and BABYMONSTER in driving YG’s future growth trajectory and calls for a strategic balance between domestic and international market strategies in the ever-evolving K-pop industry.
Korean entertainment agencies adopt diverse approaches to improve the global music industry, with HYBE and JYP prioritizing overseas expansion, SM excelling in domestic sales, and YG experiencing notable shifts in sales dynamics driven by strategic market focus and evolving artist strategies
