individual assignment topic bighit music analysis

About BigHit MusicBigHit Music is a South Korean entertainment company that specializes inthe management and production of music, particularly in the K-pop genre.Big Hit Music was founde

FPT UNIVERSITY - CAMPUS HO CHI MINH

INDIVIDUAL ASSIGNMENTTOPIC: BIGHIT MUSIC ANALYSIS

Course: MGT103

Name: Ngô Trần Ngọc VyCode: SS192814

I.INTRODUCTION1 About BigHit Music

BigHit Music is a South Korean entertainment company that specializes inthe management and production of music, particularly in the K-pop genre.Big Hit Music was founded in 2005 by Bang Si-hyuk, who is a musicproducer and entrepreneur The company initially started as Big HitEntertainment before rebranding to HYBE Corporation in 2021 Big Hit Musichas gained significant recognition for its focus on K-pop, one of the mostpopular and influential music genres globally.

(topchuyengia)

2 History

In the early years, when it was still known as BigHit Entertainment, thecompany introduced several male and female music groups, but they onlyoperated for a short period before disbanding It wasn't until 2013 that theydebuted the boy band BTS At that time, BigHit was still a small companyburdened with significant debts, on the verge of bankruptcy Surprisingly, in2017, BTS achieved remarkable success with the Love Yourself albumseries, transforming the nearly bankrupt company into one of the leadingentertainment companies in South Korea.

Beyond music production, Big Hit expanded its business into various sectorsof the entertainment industry, including concert and event management,merchandise sales, and more In March 2021, Big Hit Entertainment decidedto change its name to HYBE Corporation to reflect the diversification of itsbusiness activities and expansion into various entertainment fields.

3 Other active artists under BigHit

As of date, the label is home to soloist Lee Hyun, Lee renewed his contractwith Big Hit in March 2021 and opened a YouTube channel in celebration ofhis 14th anniversary with the company that same month.

Worldwide boyband BTS BTS is the most globally recognized K-pop group,BTS is managed by Big Hit Music, the group has achieved immense successboth in South Korea and internationally At present, all seven members of BTShave temporarily ceased activities due to fulfilling their military serviceobligations, but they have renewed their contracts with Big Hit and areexpected to reunite in 2025.

And their most recent music group is TXT TXT is another boy groupmanaged by Big Hit Music, they debuted in 2019 and quickly garneredattention for their music and performances TXT's commercial success intheir early months earned them several rookie awards at major Koreanyear-end music award shows.

4 Market share

HYBE Corporation, formerly known as Big Hit Entertainment, is a majorSouth Korean entertainment company In 2022, HYBE derived around 594.4billion South Korean won in revenue from domestic sales The largest shareof overseas revenue that year came from Asia, which accounted for around566.2 billion won in revenue1 However, it’s important to note that the marketvalue of Big Hit Entertainment is over $8bn, and BTS, which is under Big Hit,accounts for 88% of its revenue This suggests that Big Hit’s market share issignificant, but it’s also heavily reliant on one group For more specific marketshare percentages, you may need to refer to detailed industry reports orfinancial statements from the company.

(Statista Research Department 2023)

II TASK ENVIRONMENT ANALYSIS1 Competitors

a Competitive companies

BIGHIT faces competition from various entertainment companies, particularlythose involved in managing K-pop groups The K-pop industry is dynamic andhighly competitive, with several companies vying for market share and globalrecognition In this context, BIG3 is identified as a significant and noteworthycompetitor of BIGHIT in the K-pop industry, adding another layer to thecompetitive landscape The term "BIG3" is often used in the context of theentertainment industry, particularly in South Korea, to refer to the three majorentertainment companies that have significant influence and dominance As ofmy last knowledge update in January 2022, the "BIG3" in the K-pop industrytypically refers to three major entertainment companies:

-SM Entertainment:

+ A leading entertainment company in South Korea.+ Famous Artists: EXO, Girls' Generation, NCT, Red Velvet.+ Features: SM Entertainment is one of the largest entertainment

companies in South Korea They manage numerous famousartists and have diversity in areas such as music, acting, andinvestment in entertainment projects.

b Bighit competes with the Big3 in the music market.

Bighit and Big3 are the most powerful and successful leading companies inthe industry, dominating the music charts with various music groups However,with the global success of BTS, BigHit Music has also become a major playerin the industry (Odessa Gaines 2022)

In fact, BigHit has risen above the ranks to make it in the Top 3, dethroningone of the ‘Big3’ companies BigHit has ranked above JYP Entertainment,leading BigHit to be ranked 3rd and JYP Entertainment ranked 4th Therevenue of BigHit mostly comes from BTS’ success and with the debut of theirnewest boy group TXT, it is expected that their revenue will continue to rise.(Koreaboo 2019)

According to market value numbers, BigHit Entertainment’s market value hasnow hit ₩4.5692 trillion KRW ($3,908,341,525 USD), surpassing the existing‘Big3’ companies This shows that BigHit Entertainment has been verysuccessful in competing with the ‘Big3’ in the music market (Jasmine Turner2020)

(Graphic: Yoo Jeong-Soo, design journalist)

2 Customers

Their main customers are fans of their music artists, especially the globallyrenowned boy band BTS These fans are typically young individuals whoactively engage on social media and participate in the band's music,merchandise, and online content.

The customer base is often characterized by the following:

+ Age Group: Fans are typically young individuals, including teenagers

and young adults, who are drawn to the music and content producedby the artists managed by BigHit Entertainment.

+ Online Engagement: BigHit employs storytelling and social media to

connect with their customers They understand the power of eachsocial media platform and online streaming and leverage them toenhance and optimize the messaging of their artists They participate indiscussions, share content, and contribute to the overall onlinepresence of the artists Bighit owns Weverse, an online platform thatallows fans to connect with artists and music groups, as well aspurchase official products and participate in online events Thisstrategy has helped them achieve dominance worldwide.

+ Consumption of Music and Merchandise: Customers of BigHit

Entertainment are avid consumers of the music Bighit releases albumsand music products of its artists, primarily BTS This includespurchasing albums, attending concerts, and buying officialmerchandise Bighit produces and sells branded products related to itsartists, including clothing, hats, and other accessories Products likedolls, posters, and toys related to the artists and music groups arecreated to meet the demands of fans Customers engage in thesepurchases to express their support and affection for their favorite artistsand music groups Bighit has effectively leveraged the appeal of itsartists to create a diverse and rich entertainment ecosystem to cater tothe needs of fans.

+ Participation in Online Events: Fans often participate in online

events organized by BigHit Entertainment or the artists, such as onlineconcerts, fan meetings, and interactive social media campaigns.

+ Emotional Connection: Many customers of BigHit Entertainment feel

a strong emotional connection to the artists and their work Bighitaddresses customers' challenging issues such as feelings of lonelinessand isolation by delivering messages of comfort and positivity throughtheir music This approach has generated resonance with manyindividuals, contributing to their success.

Additionally, BigHit is recognized for its innovative business model where thecompany and artists collaborate as business partners This model hascontributed to their effective competitiveness in the music market It's worthnoting that the customer base may vary depending on the specific artist orgroup managed by BigHit For example, the fanbase of BTS may differ fromthat of another group under the management of BigHit.

(Pinterest)

3 Suppliers

BigHit has various collaborators These collaborators may include otherentertainment companies, music producers, and other service providers.BigHit has also expanded its strategic partnership with Universal MusicGroup, one of the largest music companies in the world (Universal MusicGroup 2021) However, specific information about BigHit's suppliers may notbe widely disclosed due to security and competition concerns within theentertainment industry Bighit's suppliers may include music productionpartners, merchandise and advertising production companies, eventmanagement firms, and various other partners in the supply chain andentertainment business management For instance, when organizing aconcert, Bighit typically collaborates with multiple partners and differentsuppliers to ensure the success of the event.

Some types of suppliers that BigHit typically engage with include:

+ EventManagementCompanies: These partners may takeresponsibility for event management, stage design, security, and otheraspects of the performance.

+ Audio and Lighting Companies: They provide sound, lighting

equipment, and performance technology to create an engagingexperience for the audience.

+ Theaters and Event Venue Providers: Collaboration with theaters

and event venues to organize concerts, events, and tours.

+ LogisticsServiceProviders: These partners may handletransportation, storage, and inventory management for products andmerchandise related to concerts.

+ Media and Advertising Partners: These partners assist in promoting

and advertising events, helping to effectively communicate themessage to the target audience.

Or, if they want to produce an album for their artists, Bighit can collaboratewith:

+ Music Production Companies: Companies that collaborate with

artists and entertainment labels to create and produce music foralbums.

+ Mixing and Mastering Engineers: Professionals who refine the sound

quality of recorded tracks to achieve the desired audio balance for thefinal album

+ Manufacturing Companies: Companies responsible for physically

producing the CDs, vinyl records, or other physical formats of thealbums.

+ Printing and Packaging Companies: Partners involved in designing

and producing the album artwork, printing inserts, and packaging forphysical copies.

+ Digital Distribution Platforms: Online platforms that distribute and

make digital versions of the albums available to consumers.

4 Strategic partners

BigHit Entertainment, also known as HYBE, has strategically partnered withseveral key collaborators:

+ Universal Music Group (UMG): BigHit and UMG announced an

expanded strategic partnership, where the two companies will closelycollaborate to enhance opportunities for artists through innovation andtechnology They aim to globally expand the reach of K-pop music andculture Additionally, they revealed plans for a historic project to formand debut a new global K-pop boy group in the United States.

(Finversia)

+ YG Entertainment: UMG became a shareholder along with BigHit, YG

Entertainment, and Kiswe in the premium online streaming platformVenewLive by KBYK.

+ Weverse: Weverse is a community-based platform that allows

dedicated fans of artists to engage, share, and interact Users canaccess and enjoy new content and purchase related products.

However, specific details about other strategic partners of BigHit may not bewidely disclosed due to security and competition considerations within theentertainment industry (Universal Music Group 2021)

5 Regulators

a Regulatory agencies

Regulatory agencies can impact Bighit Entertainment (now HYBECorporation) in various ways, depending on the industry and businessactivities of the company Here are some ways in which regulatory agenciescan influence Bighit:

+ Korea Communications Commission (KCC):

● Content Oversight: The KCC may monitor Bighit's media contentto ensure compliance with regulations and principles regardingcontent.

+ Korea Copyright Commission (KCC):

● Copyright Management: The KCC may be involved inoverseeing BigHit’s copyright management for music, videos,and other entertainment products.

+ Financial Supervisory Service (FSS):

● Financial Oversight: If Bighit engages in specific financialactivities, the FSS may supervise to ensure compliance withfinancial rules and proper financial reporting.

+ Korea Fair Trade Commission (KFTC):

● Fair Trade: The KFTC may monitor to ensure that Bighit doesnot engage in actions that undermine fair trade.

These agencies play a role in maintaining fairness, safety, and compliancewithin the entertainment industry If there are any violations, Bighit may facelegal and financial consequences.

b Interest groups

Interest groups for an entertainment company can vary, but they generallyinclude a diverse range of stakeholders who have a significant interest in thecompany's activities, success, and impact These groups can include:

+ Shareholders and Investors: Individuals or entities that own shares in

the company and have a financial interest in its performance.

+ Fans and Supporters: The fanbase and supporters of the artists and

music produced by BigHit are a significant interest group Theycontribute to the company's success through album purchases, concertattendance, and merchandise sales.

+ Artists and Talent: The performers and artists associated with BigHit

are crucial interest group members, as their success directly impactsthe company's standing in the industry.

+ Employees: The internal stakeholders, including executives, staff, and

other employees, have a direct interest in the company's performanceand success.

+ Business Partners and Suppliers: Companies and individuals that

collaborate with BigHit in various capacities, such as event organizers,music producers, and merchandise manufacturers.

+ Regulatory Authorities: Government agencies and regulatory bodies

that oversee and regulate the entertainment industry, ensuringcompliance with laws and regulations.

+ Media and Public: The media and the general public can also be

considered interest groups, as they influence the company's reputationand public perception.

+ Broadcasters and Distributors: Television networks, streaming

platforms, and distribution partners that play a role in broadcasting ordistributing the company's content.

+ Media and Critics: Journalists, critics, and media outlets play a

significant role in shaping public perception and can impact thesuccess of entertainment productions.

+ Sponsors and Advertisers: Government agencies and local

management organizations oversee the entertainment company,ensuring compliance with laws and regulations related to content,licensing, and distribution.

Balancing the interests of these groups is essential for the sustained successof an entertainment company Effective stakeholder management, publicrelations, and corporate social responsibility efforts can contribute to positiverelationships with these diverse interest groups.