YG should now bow to BB and say "thanks for advertisement"

[benihime99.livejournal.com]

YG follows path of SM, JYP with IPO, but prospects mixed at best
By Kwaak Je-yup



Korean record labels and talent agencies are desperate to exploit the global hype generated by their pop stars but the jury is out on whether they are destined for a lucrative future or disappointment.
The companies have so far benefited from the uniqueness of the domestic music market and it remains to be seen whether their unproven business model will prove enough to secure their long-term success as publically-traded firms.
YG Entertainment, which controls popular groups like Big Bang and 2NE1, recently decided to follow rival SM Entertainment JYP and go public. However, the company’s executives are first to admit that the initial public offering (IPO) has many risks.

“Entertainment companies have inherent risks. This is for sure,” said YG CEO Yang Min-suk, a former pop star himself, at the press conference Tuesday.

“We believe that because of these risks, the whole industry presents exciting new opportunities.”

YG appears to have multiple hurdles, its over-the-counter price per share surpassing 70,000 won this month notwithstanding.
Its famous in-house producing system, “YG Familism,” which has thus far been credited as its key asset for maintaining a unique sound and keeping it as a readily-identifiable brand, could either prove a blessing or a curse.

“We believe that our core assets make us very competitive in the industry,” said Yang, claiming that there are companies in other countries that want to emulate this system.
Like other players in the Korean pop (K-pop) industry, YG recruits pre-teens to teenagers, trains them, arranges their debuts and manages them throughout their careers. The problem is that it also resorts to creating music with its own producers, stifling diversity and creativity.

With a few exceptions, their key artists, five-member boy band Big Bang and female foursome 2NE1, have taken songs from the same YG artists, with their instruments churning out similar sounds and beats. Sometimes it is obvious they are using the same machines, probably proprietary ones at the YG studio in Hapjeong-dong in western Seoul.
Tellingly, the largest amount of newly-raised money will be spent on capital goods, renovating recording and dance studios, according to Yang.
The agency’s flimsy artist portfolio would present some problems as well, with Big Bang and their members’ individual activities bringing in at least half the company’s revenues. Even its sister group 2NE1 pales in comparison.
The strong brand identity also has its downside, as a single publicity mishap by one member can leave lasting damage on the performer as well as other “family” members. Nothing else shows this better than the abrupt postponement of the IPO last month, after one of YG’s most valuable assets, singer and producer G-Dragon, was caught by the authorities for smoking marijuana, causing the company to suspend his activities with Big Bang. The upcoming releases of his albums, one a solo offering in Korea and the other with band mate TOP in Japan, have been postponed indefinitely. The valuation of the company was reduced by 10 percent by this incident, according to the books.
 
Currently, neither Big Bang nor 2NE1 has newly-released music to plug.

Although Yang said there were more than 30 trainees in his studio ― “ready for their professional debut” ― and proudly previewed some rehearsal video footage to journalists, counting on their success seems risky, especially if they come out with the same YG-brand music, yet again.
Yang’s projections were rosy, nonetheless, expecting at least 80 billion won in revenue this year and at least 100 billion in 2012. In the first three quarters of the year, the company’s rough estimates say it earned 60 billion won in revenue and 9.7 billion in net income. YG is issuing 1,246,539 shares. The issue price is expected to be between 22,100 to 28,800 won per share. This would put the value of the company between 110.2 to 143.6 billion won.

KDB Daewoo Securities is the lead underwriter, with Eugene Investment & Securities participating as well.
Source: Korea Times

Comments

[es2pido.livejournal.com]

Flawless title OP

[benihime99.livejournal.com]

Thank you I think my boys deserve to be praised^^

[es2pido.livejournal.com]

And with both Big Bang and 2NE1 slowly turning out to lessen their promotions in Korea, I guess it's time for YG to bring something new to the market. I think it's a really good idea that they're gonna debut new idol groups next year while the seniors Big Bang and (omg they're seniors now) 2NE1 do something else. Bring back their glorious days, perhaps? Oh, promote overseas, which I have mixed feelings, btw

[aaalove.livejournal.com]

OMG OMG CUTEST GIF EVERRRRRRRRRRR

[u-niverse.livejournal.com]

i agree. YG needs to churn out more new groups because as much as we love BB and 2ne1, their star power would run out soon with BB having to go to army ad half of the 2ne1 girls pushing 30.

it will be interesting to see what happens. can't wait for the "more than 30 trainees" to debut.

[blackstarnebula.livejournal.com]

The 2ne1 thing is probably why the new girl group he's pushing will be all under 20.

I'm excited about the new trainees too. I want to see how YG differentiates them from BB and 2NE1,

[benihime99.livejournal.com]

Sure they'll go to the army and have less exposure but guys like GD, TOP or Daesung have real talent so I don't think that they'll run out of star power. They might shine a lil' less but they'll probably come back, at least as solo artist.

[ashiva.livejournal.com]

I lolled when the reporter complained over YG using their own in-house producers and stifling diversity and creativity. Has he/she some producer relative whose track was denied by YG or something...

[asnindie.livejournal.com]

I think 2NE1 tried with Lonely to be alot deeper than their female counterparts and succeeded imo. But BB need to get back on track, atleast GD/TOp were pretty good.

[johnnyquest89.livejournal.com]

B2Kbang weren't flops... they did decently well just blew up with Lies etc.

[deeinanutshell.livejournal.com]

I want them to stay hip hop/R&B rooted as well but I think YG has a total expansion in mind. I think he want to do it all, and not just idol-pop either. They want to become like a Universal/Hollywood Records-esque Korean company (obviously not as big tho), I think. I'm kinda skeptical about it tho.

[talklikeazombie.livejournal.com]

That's sad, I used to listen to all the bands on their jackets. And I bet they don't even know who they are.

[luvey.livejournal.com]

YG did a good thing when he nabbed Tablo and added him to the family. 1st Tablo can infuse new sounds/ideas/energy into the company and 2. when the Epik High boys return, there may be a chance of YG nabbing them too making it a nice post Army group.

[es2pido.livejournal.com]

You nailed it! :D

[benihime99.livejournal.com]

Yes can't wait for some GD/Tablo songs

[shigeshoshii.livejournal.com]

TBH I don't think YG will nab Epik High. I'm pretty sure they'll still do Map The Soul, but instead of having Woollim as a backup it'll be YG--so I guess they'll get some profits with that.

[deeinanutshell.livejournal.com]

lol at all the YG news just coming out now. It's like they finally decided "okay we can stop hiding now". >.

[johnnyquest89.livejournal.com]

Liking all the new news coming in past couple days like 2007 kpop coming back + the random rookies are sounding better n better. Dunno if I've said it before but even if BB/DBSK/WG come back with not so amazing music.. just their status and the competition they pose to everyone else helps boost the quality of what other companies will put out n I like it.

[the-wasuremono.livejournal.com]

umm that's a really weak IPO YG... debut some new bands, have more releases, and have your bands do more activities and then submit a new IPO, kk?


Also I don't know what this writer is going on about but having a strong brand image is generally considered a really good thing when going public.... but whatever.

[notyourgeisha.livejournal.com]

With how YG took in Psy and Tablo you can see he's smart in recruiting already established artists. Always churning out idol groups is expensive and they could always flop, though YGent rn is still a very small company and should really start outhousing their music. The YG avex thing was kinda weird but you can see he's taking advantage of opportunities as they come

[crazyxcami.livejournal.com]

YANG MIN SUK =/= YANG HYUN SUK

bitches gotta get their shit right tbh~

[0ddie13.livejournal.com]

Apparently Min Suk is YG's brother.

[rinn1e.livejournal.com]

Where can I buy YG stocks when it's low? Because I can see that it's gonna go up pretty fast.

[crucifiedhearts.livejournal.com]

wow, you are a legit supporter. that would never cross my mind.

[naturalhonee.livejournal.com]

just wanna say, there was a lot of reading to do in this post, but i enjoyed it all!

filled with ppl who actually took the time to make sincere and interesting comments abt YG, and not a single one of the usual yg-hating trolls or antis in sight. just like old times tbh...

[albeitalways.livejournal.com]

this. i enjoyed most of the comments here actually.