Recently, Jennie (BLACKPINK) surprised the public when she confirmed the establishment of her own company called ODDATELIER. Besides still working as a group with BLACKPINK, this company will focus on supporting Jennie to develop her personal career.
The fact that Jennie opened her own company attracted the attention of Korean media. Recently, Korean media’s Business Post news site had the latest revelation about the personal contract status between BLACKPINK and YG. Specifically, this news site said that there are concerns that YG’s individual exclusive contracts with each BLACKPINK member continuously fail. Even group activities may be hindered.
Business Post said, according to information from the entertainment industry on December 26, due to Jennie’s company opening, the exclusive individual contract for all members that YG Entertainment worked hard towards has completely failed.
Korean media said that it is possible that Lisa and Jisoo will also establish their own company in a similar way in the future. In addition, there are predictions that the validity of the exclusive group contract with BLACKPINK announced on December 6 may be very faint.
This is because YG Entertainment depends heavily on the activities of BLACKPINK – the company’s top artist in terms of revenue. In fact, according to Hyundai Motor Securities, YG Entertainment’s proportion of revenue related to BLACKPINK in 2023 is estimated to be 63-75%, and the proportion of operating profit is estimated to be more than 85%.
Kim Hyeon Yong – researcher at Hyundai Motor Securities expressed the opinion that, even if exclusive contracts are made for the group, a decrease in operating efficiency is inevitable if exclusive contracts are made for each member. not signed.
He said: “In the case of renewing individual contracts with 3 members, revenue related to BLACKPINK will remain at 70-80%. But if it is lower, revenue will drop sharply to the lowest level – around less than 50%. It’s inevitable that this will be interpreted as major negative news.”
It can be said that when each member’s management company changes, the frequency of BLACKPINK’s activities may also decrease. This is because when participating in individual activities, members will spend more time on other activities such as acting and entertainment.
Looking at the case of other entertainment companies that only carry out group contracts, unexpected difficulties may arise in implementing group activities after contract renewal.
In fact, in the case of SM Entertainment’s EXO, it took more than 4 years to return as a full group due to military issues and contract disputes after signing an exclusive group contract in 2019. 2019.
