Under the terms of the agreement, Big Hit will create the joint label with Geffen Records, which helped shape artists such as Nirvana, Guns N ‘Roses, Elton John and the recent revelation artist Olivia Rodrigo. The new record company will operate in Los Angeles.
“I strongly believe that UMG and Big Hit, two companies that constantly seek innovation, will create a synergy that will rewrite the history of global music,” Bang Si-Hyuk, Founder and CEO of Big Hit, said in a video announcing the partnership. He was accompanied by the CEO of UMG Lucian Grainge, CEO of Interscope Geffen John Janick and global CEO of Big Hit Lenzo Yoon.
The joint venture marks a major step in the collaboration between major international record labels and Korean music companies, which traditionally exercise strict control over the education, training and musical and visual production of K-pop artists.
More recently, K-pop labels have loosened their reins a little and engaged more with the majors, who are eager to get on the K-pop money train, especially due to the global success of groups like BTS and Blackpink, who they command massive and extremely loyal fanbases on social networks.
The agreements between the Korean record label and the major record labels typically involve distribution and marketing of K-pop artists outside Asia, not A&R or creative endeavors like studio production.
SEONGJOON CHO / POOL / AFP via Getty Images
Bang Si-hyuk (C), founder of the K-pop management agency Big Hit Entertainment that manages the K-pop BTS sensation, poses for a photo with company executives during the company’s initial public offering ceremony on the Korea Exchange in Seoul on October 15th. , 2020.
Big Hit, which went public on the South Korean stock exchange last October, did a series of deals recently by buying smaller record labels, investing in intellectual property by rival artists and developing live streaming platforms and fans. The company is under pressure to diversify its roster beyond BTS, especially with mandatory Korean military service still imminent for the group’s older members.
Under the terms of the agreement, the two companies will also explore enhanced communications “direct to fans” through Big Hit’s Weverse fan platform. Grainge said UMG artists Gracie Abrams, New Hope Club and Alexander 23 were already using the platform. Wednesday’s announcement follows last week’s news that UMG has become a stock investor alongside Big Hit, rival K-pop YG Entertainment and Kiswe on the VenewLive live streaming platform.
Yoon said the partners plan to broadcast the K-pop testing program in 2022 with a U.S. media partner, whose name they did not disclose on Wednesday. Big Hit will be in charge of discovering and training K-pop artists, with UMG taking care of the music production, distribution and co-production of the show with the media.
As american idol and The voice have discovered great pop stars in the United States, singing competitions have been common in the K-pop market for years. Korean companies used the format to finalize their new groups while developing an audience.
YG Entertainment pitted two potential boy bands against each other in 2014 WIN: who’s next. The show, which aired on public television in Korea, led to WINNER’s debut, with the lost band competing in another show that year, Mix and match, to determine the formation of the boy band iKON.
In 2015, JYP Entertainment was successful with the show Sixteen at Mnet, which reduced 16 potential trainees at the company to the eventual group of nine TWICE members, which broke sales and tour records for female artists in Korea and Japan.
Then, in 2016, survival singing competitions took on a new twist with the debut of Mnet’s Produce 101 series where 101 K-pop aspirants from various companies (known as “trainees”) competed for a place in a temporary group. The first season featured female interns and generated great ratings and a national sensation in the 11-member female group IOI
The second season with male interns created the boy band Wanna One. In their year together, the group won the fourth and fifth best-selling album of 2017 in South Korea (by Gaon Chart, Korea’s oldest chart service) ) and the fourth, fifth and sixth best-selling album of 2018 albums (behind BTS and EXO in both years).
The third To produce station, known as Produce 48, brought in Korean trainees and Japanese singers from the AKB48 girl group to compete for seats in the 12-member group IZ * ONE, which was successful in Korea and Japan. The fourth season, Produce X 101, created X1, which produced Korea’s fourth best-selling album in 2019.
Although they have launched careers, Korean singing competitions have also been affected by revelations about voter fraud and adverse working conditions for competitors. Spectators of Produce X 101 it demanded an investigation into voter manipulation by Mnet, which led to Korean judicial investigations that found that the program’s producers had manipulated the final X1 and IZ * ONE formations. Courts ordered prison terms for producers and sentences for the TV channel.
Artists didn’t always do well afterwards To produce. Two girl groups with IOI members fell apart due to disappointing results. Many artists tend to debut with groups or as soloists for great excitement, but fail to sustain the sales of their albums
Big Hit and UMG hope their show can change that. ENHYPEN, a boy band formed in late 2020, left I-Land, another survival reality show on Mnet.
The search for stars beyond BTS
After years of almost total attention at BTS, Big Hit over the past two years has started to focus on diversifying its list of artists and investments. In the third quarter ended September 30, 2020, Big Hit reported that the company’s revenue grew 54% over the third quarter of 2019, to 190 billion won ($ 171 million).
In March 2019, Big Hit debuted its second boy band, Tomorrow X Together, which sent two EPs to the Billboard 200 and recorded increasing sales with each album release. The Big Hit joint label with the Korean conglomerate CJ E&M, called Belift, also co-produced ENHYPEN’s debut EP entitled Frontier: Day One, overcoming the initial efforts of Tomorrow X Together.
In addition to a few minor examples, the relationship between the K-pop record companies and the big ones was mainly focused on distribution and promotion.
Columbia Records distributes BTS in the United States and JYP Entertainment has signed with The Orchard, a subsidiary of Sony Music Entertainment, for global distribution in 2019.
A stronger example of a complete K-pop / US label team was between Monsta X and Epic Records, who collaborated on the English album of 2020 All about love. The album featured artists from Sony French Montana (Epic) and Pitbull (RCA). They won a top 5 album on the Billboard 200 (the first time Monsta X entered the chart) and the album was physically available in the United States
Republic Records now has four K-pop artists listed on its list with Big Hit’s Tomorrow X Together, JYP’s TWICE, the Cube Entertainment (G) I-DLE girl group, and the recently debuted TRI.BE girl group. Tomorrow X Together and TWICE entered the Billboard 200 twice each after signing with Republic. But these agreements essentially involve distribution and promotion by the Republic.
Warner Music Group does not have any K-pop bands signed with any of their record labels.
Great success creating other businesses
Big Hit has also been active in front of acquisitions. In July 2019, the company acquired the K-pop Source Music label, home to the girl group GFriend, and last May Big Hit became the majority shareholder in Pledis Entertainment, home to Seventeen, which had the third best-selling album of 2020 in Korea behind BTS ‘two releases. Big Hit also bought KOZ Entertainment, a label founded by rapper-producer Zico, who had one of the biggest viral K-pop hits of 2020 on “Any Song”.
Big Hit also has technology subsidiaries (Weverse and beNX) and offices abroad. Big Hit Entertainment Japan is preparing a boy band, and Big Hit Entertainment America, announced in 2020, is actively hiring in Los Angeles.
Jason LaVeris / FilmMagic
Lucian Grainge attends the 2016 March of Dimes baby celebration at the Beverly Wilshire Four Seasons Hotel on December 9, 2016 in Beverly Hills, California.