Today, K-media reported on HYBE's growth exceeding expectations in Q1 2023, dispelling all concerns about the problem of filling the revenue gap left by BTS after suspending activities to enlist in the army. In the reports, the articles all point to the large revenue growth that HYBE recorded in the first quarter of 2023.
While articles claim that the implementation of a multi-label strategy has helped HYBE achieve this result, many experts and fans point out the fact that the members of BTS are still the main source of this huge revenue. Many experts even commented, "Without BTS, Kpop is just a thin iceberg" or "The position of HYBE and Kpop is actually due to the power of BTS".
Below are information and comments on whether HYBE really fills the revenue gap of BTS?
It can be said that since the BTS members announced their enlistment and recently the 2 members Jin and j-hope are doing their m̷i̷l̷i̷t̷a̷r̷y̷ service, industry insiders have been waiting for how HYBE will solve the problem of economics and profit. We all know that BTS accounted for 60% of HYBE's total revenue and profit since they turned to multi-label business (before that even BTS was the main source of revenue).
Therefore, HYBE's first-quarter revenue in 2023 has attracted the attention of experts, this is also the first year that BTS members witnessed the complete absence of group activities. On April 24, K-media reported estimating that first-quarter results exceeded market expectations.
Specifically, HYBE's revenue for the first quarter of this year is expected to be 477.5 billion won and an operating profit of 47.9 billion won. Compared to the same period last year, sales increased by 67.6% and 29.2%, respectively.
Not only that, but the stock value also witnessed a marked increase day by day. On the 21st of this month, HYBE's stock price ended at 250,000 won. Meanwhile, as of now on the 24th, it has increased by 2%.
Jeong Ji-soo, a researcher at Meritz Securities, raised the price target of HYBE from 230,000 won to 270,000 won on the 24th. Investment recommendation is maintained at BUY.
Meanwhile, it is estimated that HYBE has earned 201 billion won from album sales alone thanks to strong sales of 'OMG' by New Jeans, 'The Name Chapter: Temptation' by Tomorrow by Together, and Boo Seok Soon's "Just Do It" in January, more than tripled from the same period last year. In addition, expectations for HYBE's growth are said to lie in the world tour of ENHYPEN, TXT and SUGA in Q2 and Q3.
However, many experts and fans disagree with the above conclusions when pointing out that even though BTS members are not active as a group, they still contribute a large part to HYBE's revenue and reputation throughout the year. Specifically, since the beginning of this year, BTS members have released many music projects of each member.
It started with Jimin and Taeyang's collaboration project to Jimin's solo album FACE, j-hope's documentary and solo song "on the street", a series of major brand ambαѕѕador deals and fashion events. News about SUGA's tour has also been teased since February and is about to take place soon. In particular, when it comes to sales, Jimin's solo album alone contributed about a third of HYBE's revenue in Q1 2023.
Not to mention the achievements on the chart when it is clear that no group of HYBE can reach the level of BTS. Even more worrying is that K-pop also faces the same problem.
Experts point out that the most worrying thing is that the status of HYBE or K-pop is actually "the strength of BTS". In fact, out of the 17 K-pop songs that entered the Billboard Hot 100 in 2020, all 13, except 4 of BLACKPINK's songs, belong to BTS. In 2021, 5 out of 9 songs are BTS songs. In 2022, 11 of the 13 songs are songs by BTS members.
However, since the time BTS started to stop working, this achievement has not been supported by a drummer, the number of songs entering the Billboard Hot 100 has decreased significantly. This year, other K-pop groups like New Jeans, Fifty Fifty, and TWICE also featured songs, but with the exception of songs released by BTS members like Jimin and BTS's j-hope, only there were four songs on the Billboard Hot 100.
Obviously, BTS still plays a big role. Especially, we should mention Jimin's victory with Like Crazy at No. 1 on the Billboard Hot 100 chart in the first week of debut. He becomes the only K-pop solo artist to achieve this feat in history. Not only that, but also with this achievement, Jimin is the only K-pop artist to get #1 on the Billboard Hot 100 both as a solo artist and as a group.
In addition, even when BTS members are not active in groups, their album sales or online views have not decreased. There are even millions of copies sold. Typically, most recently, SUGA's solo album D-Day has sold millions of copies on just the first day of its release. Meanwhile, Jungkook's Euphoria has also sold more than 1 million copies in the US, up to 'RIAA Platinum' certification or Jimin's solo album FACE also reached 300 million streams on Spotify in just 26 days with 6 songs. ...
In the end, the experts concluded that the fact that revenue and reputation of HYBE and more broadly K-pop still depend largely on the revenue of BTS members. Only BTS members can fill the gap left by BTS boyband. Fans and netizens alike can't help but acknowledge this objectively!
