Artists are not renewing their contracts with YG Entertainment one by one, so just how will the agency survive?
YG Entertainment seems to be ending 2023 on a tight spot as artists continue to decide not to renew their contracts with the company. First, all members of BIGBANG decided to leave YG for good, then BLACKPINK members did not sign individual contracts, opting to only operate under YG for group activities.
This inadvertently led to a rapid decline in the company’s stock price. Due to a lack of clear growth drivers, analysts are cautious about buying YG stocks in the near future, emphasizing the uncertainty of when the stock will recover.
Specifically, as of the current moment, YG stocks are at $36.35, down 6.39% compared to the previous trading day. Korean media believes that failed negotiations with the four BLACKPINK members regarding their solo activities have contributed to the consecutive decline in stock prices.
In addition, analysts suggest a possible solution on how YG can survive with no BLACKPINK: “The direction of YG’s stock price will depend on the success of BABYMONSTER, who is currently the main growth driver for YG.”
As BLACKPINK paves their own way, the burden on TREASURE and BABYMONSTER will increase. Special attention is focused on BABYMONSTER, who is set to release their second single on February 1.
The question is whether BABYMONSTER has enough influence to achieve success comparable to BLACKPINK. This is made difficult by the absence of core member Ahyeon during the group’s debut, and YG’s lack of promotion (sans YouTube ads) did not help.
Moreover, despite being in the industry for nearly 5 years, TREASURE’s name still remains somewhat unknown in the eyes of the public. From a company famous for its powerful lineup, YG now has to rely on the success of BABYMONSTER & TREASURE to revive its reputation.
Furthermore, the company also needs the agreement of the four BLACKPINK members to continue group activities and to make a turnaround in the stock market. Other artists of the company such as AKMU and WINNER should also be given more opportunities for comebacks.
Source: K14
