Jennie’s independence is a major reason why BLACKPINK’s individual contracts with YG failed
Recently, BLACKPINK’s Jennie surprised the public by confirming the establishment of her personal label named ODDATELIER. While Jennie’s contract with YG is focused on group activities with BLACKPINK, this company will focus on supporting Jennie’s individual career.
Recently, Business Post, a Korean media outlet, disclosed the latest information about the status of individual contracts between BLACKPINK and YG. Specifically, the news outlet expressed concerns over the fact that BLACKPINK’s individual contracts with YG has failed, which may impede group activities.
According to Business Post, based on information from the entertainment industry on December 26, the establishment of Jennie’s company has completely undermined YG Entertainment’s efforts to secure exclusive individual contracts with BLACKPINK members.
This outlet also speculates that Lisa and Jisoo will establish their own companies in a similar manner in the future. Additionally, there are predictions that the effectiveness of YG’s contract with BLACKPINK for group activities will be unremarkable.
YG Entertainment relies heavily on BLACKPINK’s activities—the company’s leading artist in terms of profit. In fact, according to Hyundai Motor Securities, revenues from BLACKPINK account for 63% to 75% of YG’s total earnings, whilst profits from the group constitute over 85%.
While BLACKPINK has signed with YG for group activities, Kim Hyeon Yong, a researcher at Hyundai Motor Securities, expressed that a decrease in operational efficiency is inevitable if exclusive contracts for individual members are not signed.
“In the case of individual contracts with at least 3 members, YG’s revenue related to BLACKPINK will be maintained at 70-80%. However, if less than 3 members renew, revenue will drop sharply to below 50%”, the research emphasized.
It can be said that when the management company for each member changes, the frequency of BLACKPINK’s activities as the group may decrease. This is because members will spend more time on other individual activities such as acting and entertainment.
In fact, there have been various cases of other groups where members only resign for group activities and rarely make comebacks with the full line-up. This is expected to also happen to BLACKPINK.
Source: K14, Business Post
