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The Economics of Okay-pop – Half 9: The manufacturing system of Okay-pop – Music Enterprise Analysis

by Admin | Jun 8, 2026 | Entertainment Law, Music Business, Podcast News

Okay-pop is not only a brand new music style, however a manufacturing system that, traditionally talking, is most similar to New York’s Tin Pan Alley within the late 19^th century or the Brill Constructing pop of the Sixties. The Okay-pop manufacturing system is a collaborative value-creation community that features artist and repertoire (A&R), an intensive, long-term coaching programme, songwriting and music manufacturing, an built-in advertising mannequin, and fan engagement actions. On this a part of the weblog sequence, we are going to now analyse this manufacturing system intimately.

The Economics of Okay-pop – Half 9: The manufacturing system of Okay-pop

A&R: Expertise recruitment

The recruitment of recent expertise for the Okay-pop {industry} has given rise to a whole ecosystem wherein auditions and preparatory programs are frequently provided. Broadly talking, three completely different recruitment paths for Okay-pop artists might be recognized.[1]

The 4 main Okay-pop businesses maintain auditions on a weekly or month-to-month foundation, not solely in South Korea but additionally in neighbouring Asian international locations and past. For instance, SM Leisure’s web site lists auditions working from January to March 2026 in all main cities in South Korea, in addition to in lots of Chinese language and Japanese cities, in Bangkok, Brisbane, Sydney, Los Angeles and New Jersey, and you may register right away through the web site.[2] Locations at auditions are extremely sought-after. In line with media studies, just one in a thousand candidates is invited to SM Leisure’s auditions. At smaller businesses, this ratio stands at one in 250 functions.[3]
Along with in-person auditions, JYP Leisure additionally presents on-line auditions on its web site, the place candidates can add their movies for analysis by a jury.[4] Hybe’s sub-label Supply Music additionally presents a web based audition platform the place movies might be uploaded.[5]
Casting TV reveals are notably necessary in South Korea for locating new expertise. The nation’s main TV broadcasters, comparable to CJ ENM Leisure’s Mnet, have developed their very own TV codecs, comparable to “Celebrity Okay” or the rap contest “Present Me The Cash”, which function like auditions.[6] Moreover, survival casting reveals are being developed in collaboration with Okay-pop labels; as we’ve got already seen, these have produced celebrity acts such because the woman group Twice from the casting present “Sixteen” or Stray Children from the present of the identical title. These TV codecs have the benefit that the viewers is a part of the choice course of, thereby enabling fan loyalty to be established proper from the beginning.

The auditions are primarily aimed toward youngsters aged between 15 and 20, though in some instances youthful candidates are additionally admitted to the choice course of. The demand for a spot within the auditions is overwhelming. Because of this, a whole {industry} has emerged within the run-up to the auditions, devoted solely to making ready candidates for them. Non-public music academies and music faculties provide programs designed to coach college students for auditions. One instance is the personal singing college Sand Manufacturing unit Academy, which, along with vocal coaching, additionally presents different expertise required for a profitable audition course of. The Sand Manufacturing unit Academy collaborates with the “Massive Three” – SM, YG and JYP Leisure – in addition to with smaller businesses comparable to Starship Leisure.[7] Even the state-run Seoul Music Excessive Faculty presents programs with a concentrate on Okay-pop that put together college students for auditions.[8]

Artist coaching

If an applicant is profitable within the auditions, they then enter a coaching programme lasting a number of years, which might take as much as eight years.[9] The coaching facilities are like a well-organized army camp.[10] The trainees should not solely skilled in dance, singing and composition, but additionally obtain intensive instruction in varied languages, notably English, Mandarin and Japanese, in addition to coaching in etiquette and communication. The every day schedule is strictly organised. The trainees spend as much as 12 hours or much more every day in varied lessons – at a JYP coaching centre, this quantities to as much as 76 completely different topics[11] – and they also have little or no free time left. John Lie distinguishes between three various kinds of trainees.[12] The chunbisaeng might be described as preparatory college students and are often nonetheless so younger that they’re attending major college. For them, collaborating in coaching remains to be a form of leisure exercise. They type the inspiration for the yŏnsusaeng (practising college students), who’re already present process the total coaching programme to develop into Okay-pop stars, which might last as long as 5 years. They’re often nonetheless attending college and subsequently solely participate in coaching periods within the afternoons, which might final till late at evening. The yŏnsusaeng are subjected to in depth and really rigorous examinations no less than as soon as a month, that are a part of a range course of. Solely those that cross these examinations make it into the mission teams after three to 5 years, which serve to arrange them for an expert music profession. The members of those mission teams often dwell in shared lodging built-in into the corporate’s personal academies. They’re thus not solely subjected to a inflexible every day routine of classes and coaching, however are additionally continuously monitored, leaving them with nearly no privateness.[13]

In line with an govt at SM Leisure, solely 5 per cent of trainees make it into an expert inventive profession following this rigorous choice course of.[14] Nonetheless, there’s often one other hurdle within the type of inside survival casting reveals, that are broadcast on tv and, more and more, on-line – for instance, on YouTube – as we’ve got already seen with the formation of the assorted sub-groups of NCT at SM Leisure, or with the woman group Twice and the boy group Stray Children from JYP Leisure.

A Okay-pop star who has achieved a breakthrough has subsequently undergone a really lengthy and expensive coaching course of. SM Leisure is alleged to have invested round US $5 million within the profession of Okay-pop star BoA.[15] John Lie estimates that, on common, US $300,000 is spent per individual on constructing a single skilled Okay-pop star.[16] Nonetheless, the celebs first should recoup these immense prices. A examine commissioned by the South Korean authorities reveals {that a} Okay-pop artist earns a median of simply US $10,000 a 12 months.[17] Lie subsequently factors out critically {that a} life “of a Okay-pop star appears extra just like the lifetime of a low-wage international migrant employee than just like the lifetime of the proverbial rock star”.[18]

The division of labour within the Okay-pop manufacturing system

The Okay-pop enterprise is characterised by a extremely specialised division of labour. Songwriting groups create the musical content material. Music producers and music video administrators create the precise sound and accompanying visuals. Choreographers are liable for the skilled dance routines in music movies and on stage at concert events. Stylists and make-up artists create the precise look and total look. All these parts come collectively inside the Okay-pop corporations, whose advertising departments prepare branding partnerships and endorsements. In-house distribution arms promote the recordings and merchandise, and the Okay-pop corporations even have stakes in Korean music streaming providers.

Inside this Fordist-style manufacturing system, Okay-pop artists merely perform what they’re advised to do. John Lie even argues that Okay-pop stars must be considered as staff of Okay-pop businesses moderately than as impartial inventive personalities.[19]

Songwriting and music manufacturing

The truth is, Okay-pop artists are solely hardly ever concerned in songwriting and music manufacturing, as within the case of Stray Children or BTS. The key Okay-pop labels SM, YG and JYP Leisure, in addition to Hybe Company, make use of quite a few in-house songwriters, composers and music producers, who often work collectively in groups on a selected mission – an EP or a studio album.[20] This entails working very intently with the artists within the recording studio, and the blending and mastering of the recordings is often completed in-house.[21]

Nonetheless, this in-house manufacturing system is ceaselessly supplemented by collaborations with famend worldwide songwriters and composers. As early because the preliminary part of Okay-pop’s internationalisation within the 2010s, Okay-pop corporations entered into collaborations with Western songwriters and producers, as within the case of the Norwegian songwriting and manufacturing agency Dsign Group, which labored intently with SM Leisure[22] or the US songwriter and producer Claude Kelly, who has labored with JYP Leisure’s Marvel Women.[23] instance of worldwide collaboration is the album ‘I Acquired a Boy’ by Women’ Era, launched by SM Leisure in 2013. A complete of 74 contributors are credited on this launch, together with 36 songwriters and 15 producers, who come from South Korea, the USA, the Netherlands, Eire, Denmark, Morocco, Sweden, Norway and the UK.[24] These embody such famend artists because the British producer Steve Booker, the US producer workforce The Stereotypes, the British Grammy winner Victoria Jane Horn, and the US-based songwriter and producer Jordan Kyle.[25]

In the meantime, it has develop into customary follow for Western songwriters and producers to work with Okay-pop superstars comparable to BLACKPINK, BTS, Stray Children and Twice. Nonetheless, South Korean songwriters and producers who initially labored as staff for Okay-pop corporations have additionally efficiently gone impartial. One of the best-known instance is Massive Hit founder Bang Si-hyuk, who initially labored at JYP Leisure as a composer, arranger and producer. One other instance is the rapper, songwriter and producer Kang Dong-chul, higher often called Courageous Brothers, who labored for YG Leisure as a composer and producer between 2004 and 2008 earlier than organising his personal label, Courageous Leisure.[26] The songwriter and producer Pdogg (whose actual title is Kang Hyo-won) turned notably well-known; he had been working at Massive Hit Leisure from an early stage and was the primary to develop into conscious of the 15-year-old rapper RM, round whom BTS was subsequently shaped.[27] He’s liable for quite a few hits by BTS in addition to different main artists comparable to TXT, Suga and Enhypen, and was named the nation’s highest-earning songwriter and producer by the Korea Music Copyright Affiliation in 2019.[28] Amongst others[29] price mentioning is Teddy Park, whose actual title is Park Hong-jun; he initially loved success with the boy band 1TYM, however after the group disbanded in 2006, he started working as a producer at YG Leisure.[30] For ten years, he was liable for quite a few hits by YG artists comparable to Jinusean, SEVEN, Massive Bang, 2NE1 and, above all, BLACKPINK, earlier than founding “The Black Label” as a sub-label of YG and producing additional hits by BLACKPINK.[31]

Music video manufacturing

On the one hand, Okay-pop corporations are extremely built-in conglomerates; alternatively, they make use of versatile specialisation, whereby prices and dangers are outsourced to exterior corporations which can be, nevertheless, sure by strict contractual agreements.[32] This additionally applies to music video manufacturing. Music movies are an integral a part of the Okay-pop {industry}, and no launch is full with no rigorously crafted music video. A Guardian article estimates that, on common, a Okay-pop video prices US $100,000, with some productions exceeding the US $1 million mark.[33] The manufacturing prices for BLACKPINK‘s music video ‘Kill This Love’ rose to US $1.4 million, while US $2.4 million was spent on ‘Boy With Luv’, a collaboration between BTS and the US pop star Halsey.[34]

Okay-pop corporations don’t wish to bear these prices and the related dangers alone, and subsequently collaborate with main South Korean music video manufacturing corporations comparable to ZanyBros and Digipedi. ZanyBros is the market chief, having produced greater than a thousand Okay-pop movies and labored with nearly all main Okay-pop acts since its basis in 2002.[35] The second main music video manufacturing firm in South Korea is Digipedia – which stands for Digital Pedicure – based in Seoul in 2007 by two graphic designers. Digipedia takes a extra inventive method and is understood for its experimental movies.[36] Nonetheless, the manufacturing duo has additionally labored with among the largest names in Okay-pop, comparable to BTS, SEVENTEEN, TXT, GOT7, ENHYPEN and Stray Children.[37] Nonetheless, smaller music video manufacturing corporations have additionally managed to safe main contracts, comparable to GDW and Lumpens, each of which have produced quite a few music movies for BTS, or Naive Inventive, which works primarily with JYP artists.[38]

Choreography and stage efficiency

Dance routines and the accompanying choreography are an integral a part of Okay-pop. Dance coaching is given particular consideration throughout artist coaching and takes up a good portion of the trainees’ timetable. Choreographies are practised to perfection and likewise require good bodily health. Okay-Pop stars who’ve made their breakthrough work with the most effective choreographers for his or her music movies and stage performances. In South Korea, the 1MILLION Dance Studio is the premier vacation spot for this. Co-founded in 2014 by the now world-renowned choreographer, Lia Kim, who additionally serves as CEO and continues to steer dance lessons, 1MILLION rapidly turned a powerhouse for Okay-pop stars. Kim has choreographed many iconic songs, together with “TT” by Twice, “La Di Da” by Everglow and “Wannabe” by Itzy.[39] Nonetheless, well-known international choreographers have additionally develop into concerned within the Okay-pop {industry}, comparable to Keone Madrid from the USA, who was liable for the choreography for the BTS songs “Dope” and “Fireplace”, and the New Zealand dancer and choreographer Parris Goebel, who has labored with Massive Bang, BLACKPINK and 2NE1.[40]

Artist branding

The celebrities’ look – that’s, their look and clothes – can also be deliberate all the way down to the final element and tailor-made to the artists’ picture. To this finish, Okay-pop labels make use of groups of stylists, costume designers, hairdressers and make-up artists who fashion the celebs for public appearances, concert events and music movies.[41] This isn’t nearly selling a sure picture, but additionally about setting new traits. This side, too, is intently linked to the business advertising of the artists. SM, YG and JYP Leisure, in addition to Hybe, profit from important income generated by branding partnerships with main manufacturers and from their artists’ endorsement offers. A few of these corporations even run their very own vogue manufacturers, magnificence product strains and comfort shops to monetise the idols’ model picture.[42]

The artists’ contribution to the model picture is minimal. They execute to perfection what’s given to them. For this goal, the artists inside the woman and boy teams are assigned very clear roles. Within the literature, that is additionally known as archetypes, that are related to sure expectations.[43] Each group has a “chief”, comparable to RM from BTS or Jihyo from Twice, who’s liable for decision-making inside the group and likewise communicates these choices to the corporate. Then there’s the “Face of the Group”, also called the “Visible”, who most intently matches a selected excellent of magnificence and is successfully the group’s “face” in exterior promoting campaigns. “Vocalist” refers back to the group’s lead singer. They’ve probably the most distinctive or highly effective voice and subsequently carry out many of the singing components. Indispensable in most Okay-pop teams are the “rappers”, who’ve the most important share of the rap sections and are expert at improvising. One of the best dancers within the group are the “lead/foremost dancers”, who take centre stage throughout performances and likewise carry out crucial dance routines solo. The “centre” has a unique position; that is the group member who stands on the centre of the formation throughout a efficiency. That is often additionally the individual most ceaselessly captured by the digital camera. Lastly, there’s the position of the “maknae”, which often refers back to the youngest member of the group and might be described because the “child of the group”.

Along with these official roles inside a Okay-pop band, there are additionally unofficial archetypes which, in keeping with Kara Atkin, largely function stereotypes[44], such because the “Momzzang”, who has a very masculine physique and is bursting with health, or the “Fairly Boy”, who’s characterised by mushy facial options and has a extra light picture. One other male stereotype is the “Alien”, whose persona shouldn’t be really easy to decode and who stands for unconventional concepts. Among the many feminine members of a bunch, a distinction is made between “Woman Crush”, i.e. a robust and independent-seeming persona who exudes self-confidence. In distinction are the group members described as “cute” or “harmless”, who conform to female beliefs of magnificence and are supposed to seem notably female. They thus differ from the “elegant/mature” archetypes, who costume elegantly, are thought to be stylish and grown-up, and in doing so exude a sure distance and aloofness. It must be famous that the artists don’t select these archetypes or stereotypes themselves; moderately, these roles are assigned to them by the Okay-pop corporations. The artists are subsequently merchandise that function a mirrored image floor and are supposed to correspond to a selected advertising idea.

Endnotes

[1] An summary offers Chung, Annika. 2018. All About Okay-Pop. Inside Tales behind Okay-pop’s Rise to World Fandom. Coal Harbour Publishing. pp 120-121

[2] See https://audition.smtown.com/global-auditions. Accessed 04 Mar 2026

[3] Sin, Ben. 2018. Contained in the Okay-pop hit machine: how South Korea’s music {industry} has gone world. South China Morning Submit, 2 April. https://www.scmp.com/tradition/music/article/2139864/inside-k-pop-hit-machine-how-south-koreas-music-industry-has-gone. Accessed 04 Mar 2026

[4] See https://audition.jype.com/audition/auditions/1. Accessed 04 Mar 2026

[5] See https://www.sourcemusic.com/audition/index?lang=en. Accessed 04 Mar 2026

[6] Chung. All About Okay-Pop. p 120

[7] See https://www.sandfactory.co.kr/information/new_content_view.php?strSection=Information&strSeq=931&ckattempt=1 (Accessed 04 Mar 2026)

[8] Chung. All About Okay-Pop. p 120

[9] Ibid. p 122

[10] Sin. Contained in the Okay-pop hit machine

[11] Lie. Okay-Pop. p 120

[12] Lie. Okay-Pop. pp 124-125

[13] The Netflix documentary “BLACKPINK. Lights Up The Sky” presents a glimpse into the lives of the mission teams, offering a – nonetheless considerably idealised – look behind the scenes of the Okay-pop {industry}: https://www.netflix.com/at/title/81106901. Accessed 05 Mar 2026

[14] Lie. Okay-Pop. p 125

[15] Shin, Solee and Lanu Kim. 2013. Organizing Okay-Pop: Emergence and Market Making of Massive Korean Leisure Homes, 1980-2010. East Asia 30.

[16] Lie. Okay-Pop. p 125

[17] Ibid.

[18] Ibid.

[19] Ibid., p 124

[20] Hallyu Press authors’ workforce. p 49

[21] Ibid. p 50

[22] Kim, Suk-young. 2016. The Many Faces of Okay-pop Music Movies: Revues, Motown and Broadway in “Twinkle”. The Journal of Fashionable Tradition 49(1): pp 136-154. https://doi.org/10.1111/jpcu.12382

[23] An summary of the “Massive Three” corporations collaborating with Western songwriters and producers within the early 2010s present Oh, Ingyu and Gil-sung Park. 2012. From B2C to B2B: Promoting Korean Pop Music within the Age of Social Media. Korea Observer 43(3): S. 365-397

[24] Chung. All About Okay-pop. p 113

[25] Wikipedia. 2026. I Acquired a Boy. 2 February. https://en.wikipedia.org/wiki/I_Got_a_Boy. Accessed 05 Mar 2026

[26] Chung. All About Okay-pop. p 109

[27] Sprinkel. BTS: One. pp 46-47

[28] Kwak, Yeon-soo. 2019. BTS producer Pdogg acknowledged for prime music royalty earnings. The Korea Instances, 17 February. https://www.koreatimes.co.kr/leisure/k-pop/20190217/bts-producer-pdogg-recognized-for-top-music-royalty-earnings. Accessed 05 Mar 2026

[29] An inventory of probably the most distinguished South Korean songwriters and producers might be discovered at Chung. All About Okay-pop. pp 111-112

[30] Soulbeats. 2012. Exploring Hit-Makers: YG’s Teddy Park. 1 August. https://seoulbeats.com/2012/08/exploring-hit-makers-ygs-teddy-park/. Accessed 05 Mar 2026

[31] Choi, Na-young. 2015. Teddy and Kush to ascertain impartial label below YG Leisure.. Yang Hyun-suk personally concerned in planning. Osen, 22 September. https://m.entertain.naver.com/rating/article/109/0003162238. Accessed 05 Mar 2026

[32] Storper, Michael und Susan Christoperson. 1987. Versatile Specialisation and Regional Industrial Agglomerations: The Case of the US Movement Image Business. Annals of the Affiliation of American Geographers 77(1): pp 104-117. https://doi.org/10.1111/j.1467-8306.1987.tb00148.x

[33] Glasby, Taylor. 2018. The A-Z of Okay-pop: know your sasaengs out of your monster rookies. The Guardian, 5 June. https://www.theguardian.com/music/2018/jun/05/the-a-z-of-k-pop-know-your-sasaengs-from-your-monster-rookies. Accessed 05 Mar 2026

[34] Atkin. Okay-Pop. p 63

[35] Chakraborty, Riddhi. 2019. The Legacy of ZanyBros. Rolling Stone India, 18 April. https://rollingstoneindia.com/the-legacy-of-zanybros/. Accessed 09 Mar 2026

[36] Jackson, Julie. 2016. Digipedi, the duo behind a few of Okay-pop’s oddest movies. The Korea Herald, 8 March. https://www.koreaherald.com/article/890685. Accessed 09 Mar 2026

[37] Wikipedia. 2026. Digidepi. https://en.wikipedia.org/wiki/Digipedi. Accessed 09 Mar 2026

[38] An summary offers Chung. All About Okay-Pop. p 119

[39] Sukri, Hazeeq. 2024. How South Korea’s 1Million Dance Studio turned one of many largest names in Okay-dance. CAN Way of life, 29 December. https://cnalifestyle.channelnewsasia.com/leisure/1million-dance-studio-south-korea-427101. Accessed 09 Mar 2026

[40] Hallyu Press authors’ workforce. The Okay-Pop Phenomenon. p 53

[41] Ibid. p 54

[42] Ibid. p 55

[43] See Hallyu Press authors’ groups. The Okay-Pop Phenomenon. pp 56-57 and Atkin. Okay-Pop. pp 68-72

[44] Ibid. pp 72-75

The Economics of Okay-pop – Half 8: The Hybe Company – Music Enterprise Analysis

by Admin | May 18, 2026 | Entertainment Law, Music Business, Podcast News

Hybe Company is the latecomer amongst Okay-pop companies and was based in Seoul in 2005 by Bang Si-hyuk. How a expertise company that had simply 4 staff in 2007 and was getting ready to chapter managed to overhaul the “Huge Three” and develop into the biggest Okay-pop conglomerate is a exceptional success story that’s now to be examined in better element.

The Economics of Okay-pop – Half 8: The Hybe Company

Bang Si-hyuk[1] was already a composer and songwriter throughout his faculty days[2] and in 1997 met Park Jin-young, who was about the identical age and went on to discovered the Okay-pop company YG Leisure that very same yr.[3] Bang joined YG as a composer, arranger and producer, and was primarily chargeable for a number of hits by the boy band g.o.d.[4] In 2005, he left YG Leisure to start out his personal expertise company, Huge Hit Leisure, which didn’t get off to begin. It was solely after signing the trio 8Eight that the corporate started to see its first successes and safe its monetary stability.[5]

Nevertheless, Bang laid the foundations for constructing a company empire in 2010 when he signed the then 15-year-old Kim Nam-joon, higher often called Rap Monster or RM for brief. As now we have already seen, Huge Hit Leisure constructed BTS – arguably probably the most profitable Okay-pop act up to now – round RM. In 2013, when BTS was launched to the general public, Huge Hit Leisure was nonetheless a small fish within the Okay-pop ocean, which was dominated by SM, YG and JPG Leisure. At the moment, hardly anybody took any discover of BTS and Huge Hit Leisure, because the creator of the e-book “BTS – The Overview” famous in an interview.[6] To remain afloat financially, Huge Hit had been working with JYP Leisure since 2010, managing the boy band 2AM, which had been spun off from the eleven-member group One Day after successful the fact TV present “Sizzling Blood Males”.[7] In April 2014, the contract between Huge Hit and JYP Leisure ended, and three members of 2AM returned to JYP, while Lee Chang-min remained with Huge Hit and shaped the duo Homme with Lee Hyun from the just lately disbanded pop group 8Eight.[8]

In the meantime, BTS continued to construct their profession with album releases and their first worldwide excursions, although that they had but to attain a significant breakthrough. In September 2017, nonetheless, BTS lastly managed to interrupt into the worldwide charts for the primary time with their EP “Love Your self: Her”.[9] This caught the eye of buyers, and so the Korean cellular gaming firm Netmarble acquired a stake in Huge Hit for KRW 201.4 billion (equal to US $191.8 million), changing into the second-largest shareholder with a 25.71 per cent stake. The funding was actually additionally facilitated by the truth that the founding father of Netmarble was a cousin of Bang Si-hyuk.[10]

In March 2019, Huge Hit launched one other boy band, Tomorrow X Collectively (TXT for brief),[11] which was set to develop into the corporate’s second supply of revenue. Nevertheless, 2019 was above all a yr of company acquisitions. In July, Huge Hit acquired the label Supply Music[12] and, a month later, the video games developer Excellent.[13] In Could 2020, Huge Hit additionally grew to become the bulk shareholder of Pledis Leisure, a label based in 2007,[14] which had launched Son Dam-bi, the feminine counterpart to Okay-pop star Rain, in addition to the massively profitable boy band SEVENTEEN.[15]

The growth of the artist roster and the institution of a multi-label construction had been additionally pushed by the upcoming IPO. This proved to be an important success. The preliminary difficulty value for Hit Huge Leisure shares was set on the equal of US $117 on 15 October 2020. By the tip of the primary buying and selling day, the share value had virtually doubled to the equal of US $225.[16] This not solely made Huge Hit founder Bang Si-hyuk, who held a 36.6 per cent stake within the firm on the time, a billionaire, but in addition benefited the seven BTS members, who had opted to be paid in firm shares when renewing their contracts. Every band member grew to become US $15.6 million richer in a single stroke.[17]

This meant that Huge Hit Leisure had joined the ranks of the “Huge Three” within the Okay-pop business and would go on to surpass the three conglomerates within the years that adopted. An preliminary try was made as early as January 2021, when Huge Hit and its three way partnership BeNX acquired a 17.9 per cent stake in YG Plus, a subsidiary of YG Leisure. BeNX operated the fan group platform Weverse, by which the web group Naver has now invested KRW 355 billion (US$321 million), buying 49 per cent of the corporate’s shares in return. This deal catapulted Huge Hit into new spheres. Weverse had develop into not solely an essential platform for followers to speak with their idols, but in addition a key distribution channel for merchandise and different fan gadgets. Finally, BeNX was restructured into Weverse Firm.[18]

Nevertheless, probably the most vital step in the direction of changing into a number one Okay-pop firm was the company restructuring that started in March 2021, which additionally resulted within the renaming of the corporate to Hybe Company. Huge Hit grew to become the label Huge Hit Music, which now contains BTS and Tomorrow X Collectively, in addition to former 8Eight member Lee Hyun. Alongside Huge Hit Music, the label conglomerate now comprised Belift Lab (that includes the boy band Enhypen), Supply Music (that includes the lady band Le Sserafim), Pledis Leisure (that includes the boy band SEVENTEEN), Koz Leisure (that includes the rapper Zico) and Hybe Labels Japan (later renamed YX Labels). The second pillar was designated because the “Options” division, comprising the sport developer Excellent Corp., HYBE Three Sixty, HYBE IP, HYBE Edu, and the 2 Japanese subsidiaries HYBE Options Japan and HYBE T&D Japan. Lastly, Weverse Firm shaped the third pillar, “Platforms”.[19]

Whereas the restructuring course of was nonetheless underway, the Okay-pop group—now often called Hybe Company—set about its subsequent growth, this time into the US. In April 2021, Hybe America acquired Ithaca Holdings from Scooter Braun for US $950 million, a deal that included Taylor Swift’s label, Huge Machine.[20] Nevertheless, previous to this deal, Scooter Braun had already offered the celebrity’s first six studio albums to the personal fairness agency, the Carlyle Group.[21] Nevertheless, the Carlyle Group additionally held a stake in Ithaca Holdings and, as a part of this deal, has now offered its stake to Hybe Company. Scooter Braun has develop into co-CEO of Hybe America[22] and Scott Borchetta remained CEO of Huge Machine Label Group till February 2026.[23] A US $100 million capital improve carried out at Hybe America on the finish of March 2026 reveals that income fell by 59 per cent between 2022 and 2024, from KRW 70.4 billion to KRW 28.8 billion (equal to US$19 million). Though losses fell by 76 per cent to KRW 18.3 billion (US$12 million) over the identical interval, they continue to be properly into the crimson.[24] These figures present that increasing into overseas markets, and significantly into the US, includes excessive prices and dangers.

Nonetheless, following the group’s restructuring into Hybe Company in 2022, issues have settled down. The corporate’s founder, Bang Si-hyuk, stepped down from his position as CEO to affix the supervisory board, leaving the day-to-day operating of the enterprise to a youthful administration duo.[25]

In February 2023, Hybe then launched its massive transfer. Following a dispute amongst SM Leisure’s high administration, Hybe acquired the 14.8 per cent stake that SM founder Lee So-man had put up on the market.[26] This triggered a bidding battle for SM Leisure, because the leisure and media group Kakao additionally wished to amass a stake in SM. Finally, nonetheless, Hybe withdrew from the hostile takeover and offered half of its stake to Kakao, retaining simply 8.81 per cent in its rival.[27] This stake was finally offered to the Chinese language tech large Tencent in Could 2025.[28] With this deal – although it finally failed – Hybe demonstrated that it had not solely risen to affix the “Huge Three”, however was even able to taking on one in all its opponents. In consequence, Hybe had develop into the main Okay-pop company.

This was additional underlined by the truth that Hybe not solely had workplaces in Japan and the US, however had additionally expanded its operations to China, Latin America and India. Hybe Latin America was established following the acquisition of Exile Content material’s music division in November 2023, with Spanish-speaking workplaces opening in Mexico Metropolis, Los Angeles and Miami.[29] The institution of a department in China adopted with the founding of Hybe China in April 2025[30] and 5 months later, Hybe India Leisure was launched in Mumbai.[31]

Hybe had thus develop into an internationally energetic group that had outperformed its South Korean opponents, a reality additionally mirrored in its monetary figures (fig. 5.8). Even within the yr of its IPO, Hybe was clearly in first place with consolidated group income of KRW 796 billion, properly forward of SM Leisure (KRW 580 billion). The breathtaking income development over the subsequent two years – up 174 per cent to KRW 2.2 trillion – widened the hole with its opponents even additional. It was not till 2024 that income development slowed to three.6 per cent, although this nonetheless represented greater than double the income of its nearest competitor, SM Leisure, which stood at KRW 990 billion.

Determine 5.8: Hybe Company’s income, price and revenue tendencies, 2020-2024

Supply: After https://hybecorp.com/eng/ir/finance/revenue (Accessed 27 Feb 2026)

As price of gross sales rose at roughly the identical price as income between 2020 and 2023, Hybe was capable of double its working revenue throughout this era. The truth that the consequence was not higher was primarily as a consequence of advertising and overhead prices, which greater than tripled. As this development continued into 2024, working revenue fell by virtually 40 per cent to KRW 184 billion that yr. That is additionally mirrored within the web revenue, which grew by 111 per cent to KRW 183 billion between 2020 and 2023, however turned unfavorable in 2024 as a consequence of a closely unfavorable extraordinary results of KRW 3 billion. General, Hybe has additionally felt the results of the downturn within the Okay-pop market, however due to BTS‘s comeback in 2026, it could actually hope to return to a path of development and revenue. Nevertheless, the authorized troubles dealing with Hybe’s founder, Bang Si-hyuk, may show to be a significant drawback. Since July 2025, investigations have been underway towards him and three different staff relating to unauthorised insider buying and selling earlier than Hybe’s IPO. The bombshell got here in April 2026, when an arrest warrant was issued and Bang was barred from leaving South Korea, stopping him from attending BTS‘s opening live performance within the US. This monetary scandal may nonetheless forged a protracted shadow over Hybe’s success story.

Endnotes

[1] Kang, Haeryun. 2020. ‘Hitman’ Bang Si-hyuk, The Model-New Billionaire Behind BTS. NPR, 18 November. https://www.npr.org/2020/11/18/935848354/hitman-bang-si-hyuk-the-brand-new-billionaire-behind-bts. Accessed 26 Feb 2026

[2] Kang, Haeryun. 2020. ‘Hitman’ Bang Si-hyuk

[3] Han, Eun-hwa. 2016. Independence is vital to Okay-pop success

[4] Bruner, Raisa. 2019. The Mastermind Behind BTS

[5] Yoon, Sung-yeol. 2014. 8Eight to briefly disband after seven years… ‘Pursuing particular person music actions’. Star Information, 21. Dezember. https://m.entertain.naver.com/house/article/108/0002369958. Translated with DeepL. Accessed 26 Feb 2026

[6] Kang, Haeryun. 2020. ‘Hitman’ Bang Si-hyuk

[7] KoreAm. 2010. Cowl Story: 2PM

[8] Lee Min-ji. 2014. 2AM’s Jo Kwon, Im Seulong, and Jung Jin Woon Return to JYP Leisure. Newsen, 9 April. https://net.archive.org/net/20160312112024/http://mwave.curiosity.me/enewsworld/en/article/63193/2am-changes-agencies. Accessed 26 Feb 2026

[9] Wikipedia. 2026. Love Your self: Her

[10] Ha, Solar-young. 2018. Cousins unite as Netmarble buys stake in Huge Hit. Korea JoongAng Day by day, 6 April. https://koreajoongangdaily.joins.com/2018/04/06/business/Cousins-unite-as-Netmarble-buys-stake-in-Huge-Hit/3046607.html. Accessed 26 Feb 2026

[11] Kelley, Caitlin. 2019. BTS’s Label Reveals TOMORROW X TOGETHER Will Debut March 4. Forbes, 6 February. https://www.forbes.com/websites/caitlinkelley/2019/02/06/bts-bighit-tomorrow-x-together-txt-debut/. Accessed 27 Feb 2026

[12] Kelley, Caitlin. 2019. Huge Hit Leisure, BTS’s Label, Acquires Supply Music. Forbes, 28 July. https://www.forbes.com/websites/caitlinkelley/2019/07/28/btss-label-big-hit-entertainment-acquired-source-music/. Accessed 27 Feb 2026

[13] Kim, Eun-ae. 2019. Huge Hit acquires music recreation firm Excellent. Bang Si-hyuk: ‘It can deliver optimistic worth’. Osen, 19. August. https://m.entertain.naver.com/now/article/109/0004070079. Translated with DeepL. Accessed 27 Feb 2026

[14] Herman, Tamar. 2020. BTS’s Company Huge Hit Turns into Majority Shareholder Of Okay-Pop Firm Pledis, House To Seventeen & NU’EST. Forbes, 24 Could. https://www.forbes.com/websites/tamarherman/2020/05/24/btss-agency-big-hit-becomes-majority-shareholder-of-k-pop-company-pledis-home-to-seventeen–nuest/. Accessed 27 Feb 2026

[15] Kim, Jung-wook. 2007. “Do you need to hear my title, my title is Son Dam-bi, and also you need to hear my story about ‘Rattling’?” Edaily, 25 June. https://www.edaily.co.kr/information/learn?newsId=02086086583165328&mediaCodeNo=257. Translated with DeepL. Accessed 27 Feb 2026

[16] Stassen, Murray. 2020. Huge Hit CEO Bang Si-hyuk now price comfortably greater than $2bn as BTS agency’s IPO takes flight in Korea. Music Enterprise Worldwide, 15 October. https://www.musicbusinessworldwide.com/big-hit-ceo-bang-si-hyuk-now-worth-comfortably-more-than-2bn-as-bts-firms-ipo-takes-flight-in-korea/. Accessed 27 Feb 2026

[17] Ibid.

[18] Yoon, So-yeon. 2021. Huge Hit, Naver and YG be a part of forces in a giant Okay-pop inventory swap. Korea JoongAng Day by day, 27 January. https://koreajoongangdaily.joins.com/2021/01/27/enterprise/business/Huge-Hit-Leisure-beNX-YG-Plus/20210127192300544.html. Accessed 27 Feb 2026

[19] Stassen, Murray. 2021. BTS label Huge Hit Leisure formally rebrands as HYBE. Music Enterprise Worldwide, 19 March. https://www.musicbusinessworldwide.com/bts-label-big-hit-entertainment-officially-rebrands-as-hybe/. Accessed 27 Feb 2026

[20] Halperin, Shirley und Patrick Frater. 2021. BTS Label Proprietor HYBE Merges With Scooter Braun’s Ithaca Holdings for $1 Billion. Selection, 2 April. https://selection.com/2021/digital/information/hybe-merges-ithaca-holdings-scooter-braun-bts-1234943092/. Accessed 27 Feb 2026

[21] Halperin, Shirley. 2020. Scooter Braun Sells Taylor Swift’s Huge Machine Masters for Huge Payday. Selection, 16 November. https://selection.com/2020/music/information/scooter-braun-sells-taylor-swift-big-machine-masters-1234832080/. Accessed 27 Feb 2026

[22] Ingham, Tim. 2021. Scooter Braun sells Ithaca Holdings to HYBE, previously often called Huge Hit Leisure, for $1 billion. Music Enterprise Worldwide, 2 April. https://www.musicbusinessworldwide.com/scooter-braun-sells-ithaca-holdings-to-hybe-formerly-big-hit-entertainment/. Accessed 27 Feb 2026

[23] Stassen, Murray. 2026. Scott Borchetta exits HYBE AMERICA. Music Enterprise Worldwide, 12 February. https://www.musicbusinessworldwide.com/scott-borchetta-exits-hybe-america/. Accessed 27 Feb 2026

[24] Stassen, Murray. 2026. HYBE to inject $100M into US subsidiary, HYBE America. Music Enterprise Worldwide, 1 April. https://www.musicbusinessworldwide.com/hybe-the-home-of-bts-injects-100m-into-us-subsidiary-hybe-america12/. Accessed 02 Apr 2026

[25] Stassen, Murray. 2021. Bang Si-hyuk steps down as CEO of HYBE, previously often called Huge Hit Leisure. Music Enterprise Worldwide, 1 July. https://www.musicbusinessworldwide.com/bang-si-hyuk-steps-down-as-ceo-of-hybe/. Accessed 27 Feb 2026

[26] Hong, Yoo. 2023. SM founder Lee Soo-man joins palms with Hybe to counter SM’s Kakao partnership. The Korea Herald, 10 February. https://www.koreaherald.com/article/3059457. Accessed 27 Feb 2026

[27] Yim, Hyunsu. 2023. Okay-pop takeover battle loser HYBE to promote $437 mln stake in SM. Reuters, 24 March. https://www.reuters.com/markets/offers/south-koreas-hybe-sell-its-stake-sm-entertainment-2023-03-24/. Accessed 27 Feb 2026

[28] Stassen, Murray. 2025. HYBE is promoting its total stake in Okay-Pop rival SM Leisure to Tencent Music for practically $180m. Music Enterprise Worldwide, 27 Could. https://www.musicbusinessworldwide.com/hybe-to-sell-entire-stake-in-k-pop-rival-sm-entertainment-to-tencent-music-for-nearly-180m/. Accessed 27 Feb 2026

[29] The Straits Instances. 2023. Okay-pop large Hybe buys its first Latin music firm. 13 November. https://www.straitstimes.com/life/leisure/k-pop-giant-hybe-buys-its-first-latin-music-company. Accessed 27 Feb 2026

[30] Yoon, So-yeon. 2025. HYBE China opens in Beijing as Okay-pop powerhouse goals to spice up presence in native scene. Korea JoongAng Day by day, 29 Could. https://koreajoongangdaily.joins.com/information/2025-05-29/enterprise/business/HYBE-China-opens-in-Beijing-as-Kpop-powerhouse-aims-to-boost-presence-in-local-scene/2318504. Accessed 27 Feb 2026

[31] Agarwal, Bhavna. 2025. BTS’ firm HYBE formally launches Indian subsidiary HYBE India. India In the present day, 23 September. https://www.indiatoday.in/leisure/music/story/bts-company-hybe-officially-launches-indian-subsidiary-hybe-india-2791696-2025-09-23. Accessed 27 Feb 2026

The Economics of Okay-pop – Half 5: SM Leisure – Music Enterprise Analysis

by Admin | Apr 26, 2026 | Entertainment Law, Music Business, Podcast News

We now have already regarded on the 4 main Okay-pop companies within the earlier weblog posts. Three of them – the so-called “Large Three” – have been based within the mid-Nineteen Nineties. Large Hit Leisure adopted in 2005 and rose to grow to be the market chief due to BTS. Within the subsequent 4 weblog posts, we’ll now look behind the scenes at these companies to realize a greater understanding of the financial system behind Okay-pop. Partly 5 we begin with SM Leisure.

The Economics of Okay-pop – Half 5: SM Leisure

The financial rise of SM Leisure

SM Leisure and its founder Lee Soo-man are the true innovators behind the Okay-pop manufacturing system. SM Leisure solid youngsters modelled on the US boy and woman teams of the Nineteen Nineties, skilled them extensively by means of a rigorous, multi-year trainee programme, and positioned them in the marketplace as a particular model. This idea proved to be an enormous industrial success. As early as 2000, SM Leisure was in a position to go public in South Korea and has been listed on the KOSDAQ know-how index ever since.[1] With contemporary capital, SM was in a position to start its growth within the Southeast Asian area. As early as January 2001, a three way partnership was established with the Japanese indie label Avex Trax, which not solely noticed the primary Okay-pop solo artist, BoA, marketed on the Japanese market, but in addition led to the founding of SM Leisure Japan, the corporate’s first abroad department, through which the Japanese TV manufacturing firm Yoshimoto Kogyo Holdings Co. additionally held a stake.[2]

The beginning of the second technology of Okay-pop artists in 2003 was additionally formed by SM Leisure with acts such because the boy band SHINee and the woman teams Ladies’ Technology and f(x).[3] Essentially the most vital facet of the second technology of Okay-pop was its growth into neighbouring Asian international locations. SM Leisure was already energetic in Japan, and in 2008 China was to comply with swimsuit with the launch of the boy band Tremendous Junior-M, a Mandarin-speaking sub-group of the Korean group Tremendous Junior, who made their debut look on the Chinese language Music Awards in April 2008, performing the music “U” from their debut album “Me”.[4] This established Chinese language-language Okay-pop in China and paved the way in which for additional productions.

This idea of splitting a supergroup into Korean- and Chinese language-speaking sub-groups was additionally utilized in 2012 to the 12-member boy band EXO, which was positioned as EXO-Okay (Okay stands for Korean) and EXO-M (M stands for Mandarin) on the Korean and Chinese language markets, respectively, and have been promoted individually.[5] This progressive advertising idea, developed by SM founder Lee Soo-man, was additionally an enormous industrial success and was copied by different Okay-pop firms.[6]

In 2016, SM Leisure broke new floor with the creation of the boy band NCT, an acronym for Neo Tradition Know-how. The fundamental thought was to create a super-group with an infinite variety of members, which may very well be divided into sub-groups as required and tailored to the wants of various markets. Particularly, NCT U[7] was launched to the general public in April, NCT 127[8] in July, and NCT Dream[9] in August, every with their respective debut releases. The goal of this new technique was to tailor the completely different boy bands to market situations and thus higher attain followers. SM Leisure founder Lee Soo-man developed this new technique himself and offered it to the general public in January 2016 throughout a presentation in Seoul entitled “SMTOWN: New Tradition Know-how 2016”.[10]

New technique and energy struggles behind the scenes

This mirrored SM Leisure’s new strategic route. The corporate was to be energetic not solely in Okay-pop manufacturing, but in addition in all areas of worth creation surrounding the popular culture phenomenon. On 3 February 2023, a video entitled “SM 3.0: Producing Technique Multi ‘Manufacturing Centre/Label’ System” was revealed on YouTube, through which the 2 new CEOs, Lee Sung-soo and Tak Younger-jun, dressed correctly in fits and ties and seated at a desk in entrance of an uncovered brick wall, introduced with a bow that the earlier music manufacturing system, which had been totally tailor-made to SM founder Lee Soo-man, was to get replaced by a brand new system that includes numerous manufacturing groups, some working in-house and others introduced in from exterior.[11] Nonetheless, this multi-production centre, which the 2 CEOs offered, was only one cornerstone of the brand new technique. As well as, additional in-house labels have been to be established and collaboration with exterior labels strengthened internationally. Central to the plan, nevertheless, was the institution of the corporate’s personal music publishing arm, which was meant to bundle music rights extra successfully and monetise them extra efficiently.[12]

Nonetheless, SM Leisure’s strategic reorientation will also be interpreted as a direct assault on Lee Soo-man, who, regardless of stepping down from the board, sought to retain inventive management inside the group in his function as government producer. Though the 2 CEOs highlighted the SM founder’s achievements within the video, the brand new “SM 3.0” technique subtly sidelined him from the inventive manufacturing processes and in the end from the corporate itself.

Lee Soo-man‘s response got here rapidly. On 6 February 2023, simply 5 days after the YouTube video was launched, it was introduced that Hybe Company, SM Leisure’s foremost rival, had acquired a 14.8 per cent stake within the firm for the equal of US $334 million.[13] This primary step in the direction of a hostile takeover had solely been attainable as a result of Lee Soo-man had bought a big portion of his stake in SM to Hybe.[14] Nonetheless, two days earlier, in settlement with SM, South Korea’s largest leisure group, Kakao, had acquired a 9.04 per cent stake in SM for US $172.8 million, thereby turning into the corporate’s second-largest shareholder.[15] Simply someday later, Lee Soo-man filed an injunction in opposition to SM Leisure over the difficulty of latest shares and convertible bonds in favour of Kakao, stating that the deal had been concluded with out his consent as the most important shareholder and was due to this fact “unlawful”.[16]

Hybe’s acquisition triggered a bidding battle that might decide the destiny of SM Leisure. Initially, SM and Kakao have been at a drawback as a result of, on 3 March 2023, a court docket had issued an injunction in opposition to the deal between Kakao and SM.[17] Kakao then went on the offensive and made a proposal to shareholders to buy 35 per cent of the corporate’s shares for US $966 million, thereby rising its stake to 39.87 per cent.[18] Surprisingly, on 24 March 2023, Hybe withdrew from the bidding battle, arguing that it didn’t wish to harm shareholder worth, and introduced its intention to promote its stake in SM to Kakao.[19] On 28 March 2023, Kakao fulfilled its announcement and bought 35 per cent of SM’s shares. Hybe then bought half of its stake in SM to Kakao, retaining an 8.81 per cent stake within the firm,[20] which have been ultimately bought to the Chinese language leisure group Tencent on 30 Might 2025 for round US $180 million.[21] This made Tencent the second influential co-owner of the Okay-pop group, following the e-commerce large Alibaba, which had already acquired a 4 per cent minority stake in SM Leisure in February 2016.[22]

The reason for why Hybe withdrew from the bidding battle is straightforward: by means of this manoeuvre, SM founder Lee Soo-man had secured his reinstatement as head of the A&R division at SM Leisure, thereby regaining inventive management over the manufacturing course of.[23] The 2 younger CEOs who had staged the revolt, nevertheless, have been changed by the chief monetary officer, Jang Cheol-hyuk,[24] which was now tasked with implementing the “SM 3.0” technique. As a primary step, Kreation Music Rights was established in August 2023 as an in-house music publishing division.[25] The day earlier than, a brand new abroad department – SMKEA – was additionally established within the US in collaboration with Kakao.[26] The Okay-pop group thus continued the worldwide growth it had been pursuing for years, which, along with branches in Japan, China and Singapore, now additionally included a department in North America.

The enterprise efficiency of SM Leisure

An evaluation of SM Leisure’s organisational construction reveals that the group will not be a conventional main music label primarily based on the Western mannequin, however reasonably an built-in leisure conglomerate that developed from a Okay-pop artist company. The 2021 annual report signifies that SM Leisure had 37 affiliated firms, six of which have been listed on the inventory alternate. As well as, SM Leisure held shares in an extra 19 firms,[27] numerous content material manufacturing firms (TV, radio, theatre, software program, print, digital actuality, and many others.), in addition to branding and promoting companies, an architectural agency and a property developer, and a enterprise capital agency; it even operates a sequence of comfort shops to monetise the manufacturers of the Okay-pop stars beneath contract. SM Leisure thus recognised the worth of built-in advertising of all sorts of rights at an early stage and can also be represented internationally with branches in Japan, South-East Asia, the USA and Sweden.

Determine 1: Income, value and revenue traits at SM Leisure Group, 2014-2024

Supply: After SM Leisure Enterprise Stories 2019-2021 (translated with DeepL) and SM Leisure quarterly stories 2021-2024 (in English)

SM Leisure’s progress in recent times can also be mirrored within the group’s income efficiency. As proven in fig. 1, there was a pointy rise in income in 2018, primarily because of the acquisition of stakes in several firms, which subsequently led to the formation of the SM Life Design Group. The combination of SM Tradition & Content material Co. Ltd. into the group’s constructions, which was accomplished on the finish of 2017, has additionally boosted turnover.[28] The non permanent decline in gross sales in 2020 was because of the impression of the COVID-19 pandemic, which precipitated revenues from the live performance section specifically to plummet. This made the following rise in gross sales all of the extra dramatic. The live performance enterprise recovered in 2022, however contributed solely KRW 23 billion to whole income of KRW 851 billion. It was not till 2023 and 2024 that the live performance division regained momentum, with income of KRW 77 billion and KRW 123 billion respectively. A pointy improve of 155 per cent between 2021 and 2024 was recorded within the merchandising and licensing enterprise, which in 2024 contributed KRW 169 billion extra to whole income than the live performance section.

Nonetheless, speedy progress and diversification into different sectors have additionally led to a rise in expenditure (see fig. 5.4). Between 2017 and 2024, whole expenditure grew by 155 per cent from KRW 354 billion to KRW 902 billion, primarily as a result of rising value of gross sales, which in 2024 have been 174 per cent larger than in 2021. Advertising and marketing and overhead prices have additionally doubled throughout this era. The primary value drivers listed here are personnel bills. Between 2019 and 2024 alone, the variety of staff in full-time equivalents rose from 493 to 723.[29]

This additionally had an impression on revenue efficiency (see fig. 1). Though revenue from working actions rose to KRW 114 billion in 2023 following a decline within the coronavirus yr of 2020, however in 2024 there was a 23 per cent decline in earnings, which pushed internet revenue all the way down to virtually zero, primarily as a result of losses at related firms, notably at SM Tradition & Content material Co.[30]

This highlights the vulnerability of SM Leisure, which has grown quickly in recent times and is struggling to combine the acquired firms and investments into the group construction. The “SM 3.0” technique talked about earlier is meant to assist with this, with all enterprise divisions being oriented in the direction of the creation of cultural values. The goal is to create a unifying framework for the very various enterprise divisions. As advantageous as SM Leisure’s broad vary of choices is, integrating them is equally troublesome. The corporate’s future success will due to this fact rely closely on whether or not it succeeds in higher integrating the varied elements of the enterprise and focusing them on a standard aim.

Endnotes

[1] Yang, Hong-mo. 2000. Garosu.com and 4 different firms start buying and selling on KOSDAQ on the 27^th. Naver Information, 25 April. https://n.information.naver.com/mnews/article/015/0000210471?sid=101. Translated with DeepL. Accessed 28 Jan 2026

[2] Gil, Deok. 2001. SM Leisure “Concentrating on the World Music Album and Music Video Market”. Naver Information, 7 March. https://n.information.naver.com/mnews/article/015/0000345241?sid=102. Translated with DeepL. Accessed 28 Jan 2026

[3] See for instance Atkin. Okay-Pop. p 28

[4] Garcia, Cathy Rose A. 2008. Tremendous Junior-M Debuts in China. The Korea Occasions, 8 April. https://www.koreatimes.co.kr/way of life/people-events/20080408/super-junior-m-debuts-in-china. Accessed 28 Jan 2026

[5] Seabrook, John. 2012. Manufacturing unit Ladies. The New Yorker, 1 October. https://www.newyorker.com/journal/2012/10/08/factory-girls-2. Accessed 28 Jan 2026

[6] Ibid.

[7] Bahk, Eun-ji. 2016. SM’s new Okay-pop band NCT U to debut this week. The Korea Occasions, 4 April. https://www.koreatimes.co.kr/leisure/shows-dramas/20160404/sms-new-k-pop-band-nct-u-to-debut-this-week. Accessed 28 Jan 2026

[8] Ang, Estee. 2016. (UPDATE) #NCT127: SM Leisure Unveils Members Of New NCT Sub-Unit. Hybe, 4 July. https://hype.my/nct127-sm-entertainment-unveils-members-of-new-nct-sub-unit/. Accessed 28 Jan 2026

[9] Moon Wan-sik. 2016. NCT DREAM to debut their first single “Chewing Gum” on “M Countdown” on the 25^th. Star Information, 19 August. https://m.entertain.naver.com/now/article/108/0002548916. Translated with DeepL. Accessed 28 Jan 2026

[10] Jung, Min-kyung. 2016. SM Leisure’s subsequent boy band to have ‘limitless’ members. The Korea Herald, 27 January. https://www.kpopherald.com/article/834265. Accessed 28 Jan 2026

[11] SMTown. 2023. SM 3.0: Producing Technique – Multi ‘Manufacturing Middle/Label’ System. YouTube, 3 February. https://www.youtube.com/watch?v=n4WSs3ebprw&checklist=PL_ndMPzmGNt3v3RUs1K20LOyG8oec472d. Accessed 30 Jan 2026

[12] Ibid.

[13] Stassen, Murray. 2023. HYBE has now spent $600m+ in a single week, because it buys 14.8% stake in Okay-Pop rival SM Leisure for $334m. Music Enterprise Worldwide, 10 February. https://www.musicbusinessworldwide.com/hybe-acquires-14-8-stake-in-k-pop-rival-sm-entertainment-for-334m1/. Accessed 30 Jan 2026

[14] Ibid.

[15] Dalugdug, Mandy, 2023. South Korea’s Kakao buys 9.05% stake in Okay-Pop large SM Leisure value $172.8m. Music Enterprise Worldwide, 7 February. https://www.musicbusinessworldwide.com/south-koreas-kakao-buys-9-05-stake-in-k-pop-giant-sm-entertainment-worth-172-8m/. Accessed 30 Jan 2026

[16] Herold Muse. 2023. Lee Soo-man threatens authorized motion in opposition to SM Leisure: ‘Kakao’s acquisition of SM shares is illegal’ (official assertion). 7 February. https://www.heraldmuse.com/article/3056777. Translated with DeepL. Accessed 30 Jan 2026

[17] Dalugdug, Mandy, 2023. In victory for HYBE, SM Leisure ends Kakao deal as court docket blocks agency from issuing new shares. Music Enterprise Worldwide, 6 March. https://www.musicbusinessworldwide.com/in-victory-for-hybe-sm-entertainment-ends-kakao-deal-as-court-blocks-firm-from-issuing-new-shares/. Accessed 30 Jan 2026

[18] Dalugdug, Mandy. 2023. HYBE’s SM Leisure takeover plan falls quick, Kakao launches $960m provide for controlling stake. Music Enterprise Worldwide, 7 March. https://www.musicbusinessworldwide.com/hybes-sm-entertainment-takeover-plan-falls-short-now-kakao-launches-960m-offer-for-controlling-stake/. Accessed 30 Jan 2026

[19] Ingham, Tim. 2023. HYBE pulls out of bid to accumulate 40% stake in SM Leisure: ‘The market has been exhibiting indicators of overheating as a result of our competitors with Kakao.’ Music Enterprise Worldwide, 7 March. https://www.musicbusinessworldwide.com/hybes-sm-entertainment-takeover-plan-falls-short-now-kakao-launches-960m-offer-for-controlling-stake/. Accessed 30 Jan 2026

[20] Yim, Hyunsu. 2023. Kakao’s stake in Okay-pop company SM climbs to 40%, HYBE retains 8.8%. Reuters, 28 March. https://www.reuters.com/enterprise/media-telecom/kakao-reaches-40-stake-k-pop-agency-sm-hybe-keeps-88-2023-03-28/. Accessed 30 Jan 2026

[21] Stassen, Murray. 2025. HYBE is promoting its complete stake in Okay-Pop rival SM Leisure to Tencent Music for almost $180m. Music Enterprise Worldwide, 27 Might. https://www.musicbusinessworldwide.com/hybe-to-sell-entire-stake-in-k-pop-rival-sm-entertainment-to-tencent-music-for-nearly-180m/. Accessed 30 Jan 2026

[22] Kang, John. 2016. Why Alibaba Purchased $30M Stake In Okay-Pop Large SM Leisure, Residence To EXO And Ladies’ Technology. Forbes, 11 February. https://www.forbes.com/websites/johnkang/2016/02/11/why-alibaba-bought-30m-stake-in-k-pop-giant-sm-entertainment-home-to-exo-and-girls-generation/#7e130efda556. Accessed 30 Jan 2026

[23] Lee, Eun-young. 2023. Former SM CEO Lee Sung-soo, who pledged to step again, returns to C-level place. ChosunBiz, 14 April. https://n.information.naver.com/mnews/article/366/0000893605. Translated with DeepL. Accessed 30 Jan 2026

[24] Kwaak, Jeyrup S. 2023. SM Leisure Appoints New CEO & Board as Okay-Pop Large Seems to be to the Future. Billboard, 31 March. https://www.billboard.com/professional/k-pop-label-sm-entertainment-appoints-new-ceo-board/. Accessed 30 Jan 2026

[25] Dalugdug, Mandy. 2023. SM Leisure to launch music publishing subsidiary, Kreation Music Rights. Music Enterprise Worldwide, 10 August. https://www.musicbusinessworldwide.com/sm-entertainment-to-launch-music-publishing-subsidiary-kreation-music-rights/. Accessed 30 Jan 2026

[26] Schneider, Marc. 2023. SM Leisure and Kakao Launch Joint Division in North America. Billboard, 1 August. https://www.billboard.com/professional/sm-entertainment-kakao-north-america-launch-partnership/. Accessed 30 Jan 2026

[27] SM Leisure. 2022. SM Leisure Enterprise Report 2021. pp 328-332 (translated with DeepL)

[28] SM Leisure. 2022. SM Leisure Enterprise Report 2021., p 14 (translated with DeepL)

[29] SM Leisure. 2022. SM Leisure Sustainability Report 2021. p 52 and SM Leisure. 2025. SM Leisure Sustainability Report 2024. p 90

[30] See quarterly stories of SM Leisure for 2024

The music streaming market in South Korea – Music Enterprise Analysis

by Admin | Apr 5, 2026 | Entertainment Law, Music Business, Podcast News

On this a part of the weblog collection, we are going to analyse the music streaming market in South Korea, which has grown so quickly in recent times – primarily due to Ok-pop – and has introduced file revenues to home music streaming providers. Nevertheless, within the 2020s, worldwide opponents entered the market and have been in a position to achieve market share on the expense of South Korean streaming suppliers. The explanations for this might be additional analysed.

The Economics of Ok-pop – Half 2: The music streaming market in South Korea

Lately, competitors within the South Korean music streaming market has intensified. For years, native music streaming providers had divided the market amongst themselves. That modified on 22 Could 2018, when Google launched each, the subscription-based YouTube Premium service – providing ad-free movies – and the ad-supported YouTube Music streaming service in South Korea.[1]

YouTube was already highly regarded in South Korea at the moment, as evidenced by the rising income from ad-supported music video streaming, which had surged to US $59 million by 2021, whereas income from ad-supported audio streaming stagnated at round US $6 million between 2016 and 2021 (see fig. 1).

Determine 1: Income from ad-supported audio and video streaming in South Korea, 2016–2021

ource: IFPI World Music Studies 2016-2021

The sport-changer was that Google bundled its two providers and built-in YouTube Music into YouTube Premium. Because the Ok-pop aesthetic is extremely performative and centred on dance, efficiency and outfits, music movies have been of nice relevance to followers, which made the YouTube providing very engaging. Many customers who had beforehand used home paid music providers now switched to YouTube Music. While YouTube Music had simply 4.03 million month-to-month energetic customers (MAUs) in 2021, inserting it effectively behind the market chief MelOn with 6.89 million,[2] it had closed the hole on MelOn with 6.27 million MAUs, which had 6.61 million MAUs a yr later (see fig. 2). In 2022, the Korean suppliers Genie Music (3.32 million MAUs) and FLO (2.13 million MAUs) adopted within the rankings, forward of Spotify with 0.79 million MAUs. By 2025, the image had modified utterly. YouTube Music was clearly in first place with 10.12 million MAUs, adopted by MelOn with 6.23 million MAUs. Nevertheless, the rising star of the yr was Spotify, which shot as much as third place with a development soar of 168 per cent to 4.24 million MAUs. In distinction, consumer numbers for the Korean providers Genie Music (2.57 million MAUs) and FLO (1.76 million MAUs) declined in 2025 (see fig. 2).

Determine 2: The music streaming market in South Korea by market share, 2022–2025

Supply: After Lee Kyung-tak. 2025. Spotify climbs to 3rd place in South Korea music streaming market. Chosun Biz, 23 September. https://biz.chosun.com/en/en-it/2025/09/23/KLQLRSGEXVEZHPRQVREMVYCX2E/. Accessed 16 Dec 2025

Korean music streaming providers noticed Google’s bundling technique as unfair competitors and criticized the US web big for it. In 2024, they acquired help from the Korean Honest Commerce Fee (FTC), which launched the “Platform Competitors Promotion Act” to allow simpler motion towards monopolistic market practices and the abuse of a dominant market place. The brand new regulation was aimed not solely on the Korean tech giants Naver, Kakao and Coupang, however primarily focused main US web firms reminiscent of Google, Meta and Apple. The function of music streaming providers was additionally to be scrutinised extra carefully, as FTC Chairman Han Ki-jeong introduced in a speech earlier than the American Chamber of Commerce in Seoul.[3]

The FTC’s subsequent investigations revealed that Google had breached competitors guidelines by bundling YouTube Premium and YouTube Music. The FTC argued {that a} month-to-month subscription to YouTube Premium in Korea would price KRW 14,900 (US$10.78) and that customers must pay KRW 11,990 (US$8.67) per 30 days for the ad-supported streaming service YouTube Music, with out the choice to change to a premium-only plan. The FTC concluded that this distorted competitors and deprived different music streaming providers, as shoppers may then change on to YouTube Premium, and initiated authorized proceedings towards Google Korea.[4]

To keep away from the hefty penalties offered for within the regulation, Google Korea entered into negotiations with the FTC, which, after an extended and difficult battle, resulted in an final result passable to each side. Google agreed to launch YouTube Premium Lite, which might price KRW 8,500 for customers of Android units and KRW 10,900 for Apple units. Within the Lite model, adverts are faraway from most movies, although not from YouTube Shorts. Moreover, options reminiscent of offline downloads and background playback aren’t accessible.[5]

The FTC expressed satisfaction with this compromise, as shoppers with little curiosity in YouTube Music may now change to the Lite model and subscribe to different music streaming providers. In return, Google agreed to maintain the subscription value for YouTube Premium Lite unchanged for a minimum of one yr and, within the occasion of future value adjustments, to take care of the value distinction between the complete model of YouTube and the Lite providing. Moreover, Google dedicated to paying KRW 30 billion to the general public broadcaster Korean Broadcasting System (KBS) in order that it may well higher help the Korean music business and home artists.[6] It stays to be seen whether or not this compromise will enhance the scenario for Korean music streaming providers, and there has already been criticism from Korean YouTube opponents.[7] Nevertheless, after years of development, they’ve come beneath large financial strain from overseas opponents.

Endnotes

[1] Snapes, Laura and Mark Sweney. 2018. YouTube to launch new music streaming service. The Guardian, 17 Could. https://www.theguardian.com/music/2018/might/17/youtube-music-new-streaming-service-launch. Accessed 16 Dec 2025

[2] Lee, Gyu-lee. 2025. Will home music streaming providers regain market share after YouTube’s new subscription program? The Korea Instances, 23 Could. https://www.koreatimes.co.kr/enterprise/tech-science/20250523/will-korean-music-streaming-services-regain-market-share-after-youtubes-new-subscription-program. Accessed 16 Dec 2025

[3] Lee, Jae-lim. 2024. Antitrust watchdog mulling inclusion of music streaming websites beneath platform regulation. Korea Joong-Ang Day by day, 7 March. https://koreajoongangdaily.joins.com/information/2024-03-07/enterprise/business/Antitrust-watchdog-mulling-inclusion-of-music-streaming-sites-under-platform-regulation/1997097. Accessed 19 Dec 2025

[4] Lee, Jae-lim. 2024. FTC opens penalty overview towards Google for bundling subscriptions. Korea Joong-Ang Day by day, 8 July 2025. https://koreajoongangdaily.joins.com/information/2024-07-08/enterprise/business/FTC-opens-penalty-review-against-Google-for-bundling-subscriptions/2085507. Accessed 19 Dec 2025

[5] Lim, Jeong-won. 2025. Google to launch YouTube Premium Lite plan in Korea after FTC approval. Korea Joong-Ang Day by day, 27 November 2025. https://koreajoongangdaily.joins.com/information/2025-11-27/enterprise/business/Google-to-launch-YouTube-Premium-Lite-plan-in-Korea-after-FTC-approval/2464732. Accessed 19 Dec 2025

[6] Ibid.

[7] Lee, Gyu-lee. 2025. Will home music streaming providers regain market share after YouTube’s new subscription program? The Korea Instances, 23 Could. https://www.koreatimes.co.kr/enterprise/tech-science/20250523/will-korean-music-streaming-services-regain-market-share-after-youtubes-new-subscription-program. Accessed 19 Dec 2025

Hatsune Miku – Music Enterprise Analysis

by Admin | Jan 18, 2026 | Entertainment Law, Music Business, Podcast News

Whereas the primary and second generations of digital musicians required human singers to supply the vocals and studio bands to interpret the music, Vocaloid software program, developed by Japanese synthesiser producer Yamaha within the late Nineties, enabled the creation of purely computer-generated voices for the primary time. This resulted within the creation of the music avatar Hatsune Miku by the Sapporo-based gaming firm Crypton. Initially meant as a advertising software, Hatsune Miku developed a lifetime of her personal on social media, resulting in the creation of a music avatar of the identical identify. To at the present time, the avatar provides concert events in entrance of tens of 1000’s of followers worldwide, producing thousands and thousands in merchandising and branding income for Crypton.

Half 2 of the weblog collection will discover the background to Hatsune Miku’s creation, in addition to her subsequent profession as a concert-performing singing avatar.

Digital Music Worlds – Half 2: Hatsune Miku

The pre-history of Hatsune Miku

To carry Kyoto Date and Adam to life, human singers needed to lend them their voices. At the moment, there have been no AI-generated voice clones able to singing independently. However, the event of artificial voice era dates again to the late Nineties. In 1998, Japanese instrument producer Yamaha unveiled the FS1R voice synthesiser, which might already distinguish between voiced and voiceless sounds. This enabled it to mimic the human voice to a sure extent.[1] Nonetheless, the FS1R’s voice era was nonetheless very rudimentary and artistically unsatisfactory. Yamaha subsequently started to enhance the synthesiser and teamed up with the Music Expertise Group at Pompeu Fabra College in Barcelona. Collectively, they developed the Vocaloid software program synthesiser, which was offered to the general public in March 2003 on the music truthful in Frankfurt am Essential below the identify “Daisy”, however was renamed Vocaloid shortly afterwards attributable to copyright issues.[2] Though the software program was comparatively easy to make use of, it was time-consuming. Customers needed to enter the notes of a music and its lyrics, after which they may reproduce the music utilizing an artificial voice. Nonetheless, at the very least a MIDI interface allowed WAV information to be transferred, enabling the music to be edited additional.

In January 2004, British sound library producer Zero-G, in cooperation with Yamaha, offered the primary two programmes for digital female and male voices, Leon and Lola, on the Nationwide Affiliation of Music Retailers music truthful (NAMM Present) in Anaheim, California. As well as, a software program package deal known as Miriam was provided, based mostly on the voice of British pop star Miriam Stockley.[3] The primary software program packages for artificial voices attracted media consideration, however bought very poorly.[4] However, the Sapporo-based software program firm Crypton Future Media developed the primary artificial voices in Japanese. On 5 October 2004, Meiko, based mostly on the voice of singer Meiko Haigō, was launched,[5] adopted on 17 February 2006 by Kaito, based mostly on the voice of singer Naoto Fūga.[6] Whereas Meiko bought comparatively properly with 3,000 items shipped, Kaito remained a gradual vendor. Crypton executives concluded that feminine voice synthesiser programmes bought higher as a result of the audience was principally younger male anime followers, as Crypton CEO Hiroyuki Ito revealed in an interview in 2008.[7]

The Creation of Hatsune Miku

In 2007, to cater to Japanese desktop music customers and anime followers, Crypton launched a brand new Vocaloid undertaking known as Hatsune Miku, which interprets as “The Voice from the Future”. This growth coincided with Yamaha’s launch of Vocaloid 2. This new synthesiser software program was not solely extra user-friendly but in addition produced higher-quality sound synthesis.[8] This suited the creators of Hatsune Miku, who travelled to Tokyo to seek out the fitting voice for the brand new software program package deal and have the graphic design for Hatsune Miku developed. Wataru Sasaki, the producer answerable for Vocaloid, went to Arts Imaginative and prescient, an organization that had a database of voice actors. Sasaki listened to 300 sound samples for hours and at last selected the voice of Saki Fujita as a result of it was “simple to grasp and cute,” as Sasaki defined in an interview.[9] The mandatory voice recordings have been made with Saki Fujita, which have been then fed into the Vocaloid programme. The intention was to create a virtual-sounding voice that was neither too artificial nor too pure. It needed to match the fictional character that was subsequently developed by manga artist Kei Garō. They’d turn into conscious of him through the Web and commissioned him to design a 16-year-old lady in anime model. Kei Garō despatched numerous designs by e-mail till these accountable at Crypton have been happy. The top consequence was a lady with turquoise hair that reached virtually to the ground within the type of extra-long braids, held collectively by magenta sq. hair rings. Headphones linked to a microphone might be seen peeking out from below her magnificent hair. She wore an equally turquoise, extra-long tie over a sleeveless black college uniform that led to a miniskirt. Black arm socks lined her forearms and black stockings wrapped her legs. The quantity “01” was tattooed in purple on her left higher arm, clearly indicating that Hatsune Miku was the primary Vocaloid character created by Crypton.[10]

Crypton created two further Vocaloid voices alongside Hatsune Miku: Kagamine Rin and Len. These are a pair of 14-year-old siblings, voiced by Japanese actress Asami Shimoda. In distinction to Hatsune Miku, the voices of Rin and Len are considerably stronger and richer and have been meant to enchantment to a unique audience.[11]

Hatsune Miku Turns into a Bestseller

On 31 August 2007, gross sales of the Hatsune Miku Vocaloid software program started. At the moment, Hatsune Miku existed solely as an artificial voice and as an anime drawing that adorned the software program field. However, the discharge was an unexpectedly large success. Greater than a thousand items have been bought within the first week alone. Crypton needed to impose a vacation ban in order that the immense demand might be met in day and night time shifts. Inside six months, greater than 30,000 copies of the software program package deal had been bought.[12]

Nonetheless, Hatsune Miku would have remained a short-lived advertising phenomenon if a loyal fan base had not been emerged who used the software program extensively to create their very own content material. Instantly after its preliminary launch, user-generated music tracks that includes Hatsune Miku’s voice appeared on the Japanese video-sharing platform “Niko Niko Dōga”, and have been subsequently animated in 2D and even 3D by different customers.[13] There was a veritable artistic explosion on the Japanese YouTube clone, which was cleverly exploited by the producer Crypton to additional improve the recognition of the fictional character. As an alternative of putting Hatsune Miku in a copyright cage, its use was launched in 2012 below the Inventive Commons licence CC-BY-NC.[14] Nonetheless, to be able to retain management over using Hatsune Miku, Crypton launched the Piapro platform in December 2007, the place Vocaloid customers might add the content material that they had created and alternate concepts with different customers. Piapro stands for peer manufacturing and goals to unleash the creativity of Hatsune Miku followers by permitting them to share illustrations, animations and different digital content material.[15] By the top of February 2008, the platform already had round 50,000 registered customers, who had uploaded 17,000 illustrations, 2,500 items of music and 1,700 lyrics.[16] Hatsune Miku thus turned a social media phenomenon earlier than she even existed as an avatar, and shortly spilled over into the actual world. Hatsune Miku fan golf equipment have been based all through Japan, organising events and different occasions the place followers appeared dressed within the anime character’s outfit.[17]

Followers and Japanese artists alike used the Hatsune Miku vocal synthesiser to provide their very own music. In Japan, that is known as Dōjin Ongaku, i.e. music produced by followers, which even made it into the Japanese charts. The primary Dōjin album with music based mostly on the Hatsune Miku software program was launched in September 2007, and plenty of extra have been to observe within the years that adopted.[18]

The album ‘Supercell’ by the J-pop group of the identical identify was notably profitable. Composer and lyricist Ryo had the songs interpreted utilizing the Hatsune Miku vocal synthesiser. The album reached quantity 4 within the Japanese Oricon charts and remained there for 37 weeks.[19] Since 2007, greater than 100,000 songs have been created utilizing the Hatsune Miku software program, in response to the digital artist’s homepage.[20]

Nonetheless, Hatsune Miku appeared not solely in music but in addition in different media. She was the protagonist of the manga collection “Maker Hikōshiki Hatsune Combine”, created by Kei Garō and printed in “Comedian Rush” journal from November 2007 to December 2010.[21] Hatsune Miku additionally appeared as a personality within the golf simulation recreation PangYa in Could 2008,[22] and the digital star was even the primary character within the rhythm recreation “Hatsune Miku: Venture Diva” from Sega, which was accessible for PlayStation from July 2009.[23]

Hatsune Miku shortly turned an enormous advertising phenomenon, which Crypton Future Media efficiently exploited in licensing agreements for merchandising and branding actions. Hatsune Miku even made it onto two BMW GT300 class racing vehicles belonging to the Studio AG racing workforce, which competed on racetracks world wide in 2008 and 2009.[24] In March 2012, the Japanese enterprise portal SankeiBiz cited a examine by the Nomura Analysis Institute, in response to which gross sales of services branded with Hatsune Miku had totalled YEN 10 billion (round EUR 125 million) since 2007.[25]

Hatsune Miku Involves Life

Nonetheless, Hatsune Miku solely really got here to life as an avatar who additionally carried out reside in concert events. She made her debut on 22 August 2009 on the anime music pageant “Animelo Summer time Dwell 2009 Re:bridge” within the Saitama Tremendous Area in entrance of 25,000 anime followers. Anime Information Community offered a live performance overview the next day, describing the memorable efficiency: “The live performance used a display put in behind the stage to undertaking Hatsune a number of tales tall earlier than a standing-room-only crowd of 25,000. After a greeting, the computer-generated Hatsune proceeded to sing (and dance) on two songs — ‘Miku Miku ni Shite Ageru (Shiteyan yo)’ and ‘Black Rock Shooter.’”[26] Just a few months later, in November 2009, Hatsune Miku made her first look exterior Japan on the “Anime Pageant Asia” in Singapore.

Inspired by the overwhelming public response, Crypton organised the digital star’s first solo live performance in 2010. For this objective, a 3D animation of Hatsune Miku was developed and projected onto clear, human-sized screens. Following intensive preparation and rehearsals, the live performance befell on 9 March 2010 on the Zepp live performance corridor on the man-made island of Odaiba in Tokyo Bay. The live performance started in a mystical ambiance with the solo voice of Hatsune Miku coming from offstage in entrance of a sea of tens of 1000’s of glow sticks, which the followers, shrouded in darkness, waved euphorically to the beautiful melody. The scene was illuminated by an outsized disco ball that shone just like the moon within the sky, earlier than techno rhythms introduced the reside band into view and Hatsune Miku rose like a life-size ghost from the stage ground to introduce the brand new music. In complete, the digital famous person carried out 39 songs, altering outfits and performing with the opposite Vocaloid characters Rin, Len and Luka.[27] The live performance was titled “Miku no Hello Kanshasai 39’s Giving Day”, with the quantity 39 standing for “Thanks” in Japanese, expressing gratitude to the followers for his or her help, which made the phenomenon of Hatsune Miku doable within the first place.[28]

To advertise the music exterior Japan, the live performance was carried out once more on 2 July 2011 on the Nokia Theatre in Los Angeles as a part of “Anime Expo 2011”, within the “39’s Giving Day” format.[29] In 2012, Crypton teamed up with French luxurious model Louis Vuitton and produced the Vocaloid opera “The Finish” with Japanese star director Toshiki Okada, through which Hatsune Miku and different Vocaloid characters carried out on the Chatelet Opera Home in Paris from 13 to fifteen November 2012.[30] Nonetheless, Hatsune Miku‘s worldwide breakthrough got here when she was the opening act for Woman Gaga‘s “ArtRave: The Artpop Ball” world tour, as Woman Gaga had declared herself to be a fan of Hatsune Miku. From 6 Could to three June 2014, the Japanese music avatar opened the concert events of the US famous person.[31] And on 8 October 2014, Hatsune Miku even appeared on David Letterman’s Late Present on CBS, performing the music “Sharing the World”.[32]

Crypton Future Media has efficiently established the digital pop star as a global, lasting phenomenon. Since 2013, Hatsune Miku’s “birthday” has been celebrated yearly with tens of 1000’s of followers on the finish of August in Japan below the title “Magical Mirai”.[33] Since 2014, the ‘Miku Expo’ concert events have been held recurrently world wide, bringing Hatsune Miku and her Vocaloid colleagues to different Asian international locations, Europe, North America, Australia and New Zealand,[34] thereby increasing their fan base.

It’s astonishing what number of followers worldwide cheer for the digital pop star at concert events, purchase her merchandise and music, and thus improve her promoting worth even additional. An unmanageable quantity of merchandise and branded merchandise profit from the persevering with reputation of Hatsune Miku. The concert events are only one aspect of a whole advertising universe that Crypton Future Media has created across the digital famous person. The concert events are additionally a blueprint for AI-generated music avatars, which have lately begun to take the world’s live performance phases by storm.

Endnotes

[1] Sound on Sound, “Yamaha FS1R – FM Synthesis/Formant-shaping Tone Generator”, December 1998, accessed: 2025-08-20.

[2] Die Welt am Sonntag, “Software program trifft den richtigen Ton”, December 7, 2003, accessed: 2025-08-20.

[3] Zero-G press launch, “HOT NEWS!! Zero-G broadcasts the world’s first VOCALOID digital vocalist merchandise, LEON and LOLA”, January 15, 2004, accessed: 2025-08-20.

[4] IT Media, “The Making of Hatsune Miku”, February 22, 2008, translated from Japanese with DeepL, accessed: 2025-08-21.

[5] Ibid.

[6] Ibid.

[7] Ibid.

[8] Sound on Sound, “PowerFX Vocaloid 2 Candy Ann”, January 2008, accessed: 2025-08-21.

[9] IT Media, “The Making of Hatsune Miku”, February 22, 2008, translated from Japanese with DeepL, accessed: 2025-08-21.

[10] Ibid.

[11] Ibid.

[12] IT Media, “Hatsune Miku Opens the ‘Door to Creativity’”, February 25, 2008, accessed: 2025-08-21.

[13] Ibid.

[14] Crypton Future Media, “Who’s Hatsune Miku?”, n.d., accessed: 2025-08-21.

[15] IT Media, “Hatsune Miku Opens the ‘Door to Creativity’”, February 25, 2008, accessed: 2025-08-21.

[16] Ibid.

[17] Ibid.

[18] The German Wikipedia web page on Hatsune Miku offers a great overview: Wikipedia, “Hatsune Miku”, model of July 28, 2025, accessed: 2025-08-21.

[19] Wikipedia, “Supercell (album)”, model of August 21, 2025, accessed: 2025-08-21.

[20] Crypton Future Media, “Who’s Hatsune Miku?”, n.d., accessed: 2025-08-21.

[21] Anime Information Community, “Darkish Horse Provides New Lone Wolf and Cub, Hatsune Miku: Unofficial Hatsune Combine Manga”, March 29, 2013, accessed: 2025-08-21.

[22] Wikipedia, “PangYa”, model of January 27, 2025, accessed: 2025-08-21.

[23] Wikipedia, “Hatsune Miku: Venture DIVA (online game)”, model of Could 22, 2025, accessed: 2025-08-21.

[24] Tremendous GT Scorching Information, “The Rumored No. 808 Hatsune Miku Studie Glad BMW Z4”, August 18, 2008, accessed: 2025-08-21.

[25] SankeiBiz, “Hatsune Miku, an actual enterprise alternative: reside performances, karaoke, commercials… associated consumption exceeds 10 billion yen”, March 27, 2012, accessed: 2025-08-21.

[26] Anime Information Community, “Hatsune Miku Digital Idol Performs ‘Dwell’ Earlier than 25,000”, 23. August 2009, Zugriff am 22.08.2025.

[27] YouTube, “Miku no Hello Kanshasai 39’s Giving Day”, February 16, 2019, accessed: 2025-08-22.

[28] Anime Information Community, “Hatsune Miku Digital Idol to Maintain 1st Solo Live performance”, December 10, 2009, accessed: 2025-08-22.

[29] Anime Expo, “Japan’s Digital Pop Star Hatsune Miku To Make U.S. Live performance Debut At Anime Expo 2011”, Could 12, 2011, accessed: 2025-08-22.

[30] Japanverse, “Louis Vuitton And Marc Jacobs To Crew Up With Hatsune Miku”, November 22, 2012, accessed: 2025-08-22.

[31] Anime Information Community, “Hatsune Miku to Open For Woman Gaga”, April 16, 2014, accessed: 2025-08-22.

[32] YouTube, “Hatsune Miku Performs “Sharing The World” | Letterman”, Could 12, 2023, accessed: 2025-08-22.

[33] Crypton Future Media, “Hatsune Miku Magical Mirai”, n.d., accessed: 2025-08-22.

[34] Crypton Future Media, “Miku Expo Historical past”, n.d. accessed: 2025-08-22.

« Older Entries

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The Economics of Okay-pop – Half 5: SM Leisure – Music Enterprise Analysis

The Economics of Okay-pop – Half 5: SM Leisure

The music streaming market in South Korea – Music Enterprise Analysis

The Economics of Ok-pop – Half 2: The music streaming market in South Korea

Hatsune Miku – Music Enterprise Analysis

Digital Music Worlds – Half 2: Hatsune Miku

The pre-history of Hatsune Miku

The Creation of Hatsune Miku

Hatsune Miku Turns into a Bestseller

Hatsune Miku Involves Life

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