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Why Did YG Entertainment Challenge SM Entertainment? Into the Mind of YG CEO Yang Hyun Suk

By Staff Writer | February 15, 2014 04:30 AM EST

What is the reasoning behind YG Entertainment's recent challenge to SM Entertainment?

Many fans are wondering why YG Entertainment decided to cross paths with SM Entertainment by releasing 2NE1's new album on the same day as Girls' Generation's highly anticipated mini album. Seeing as how many entertainment companies try to dodge each other in order to minimize competition, YG CEO Yang Hyun Suk's choice has left many fans scratching their heads.

There is a sort of confidence in Yang Hyun Suk's voice when he speaks of 2NE1's upcoming album. He explained, saying, "We've released many singles and mini albums with 2NE1 but this is the first time we're releasing an album with brand new tracks and self-composed songs."

But the question cannot be answered with mere "confidence" when challenging SM Entertainment and arguably their number one brand, Girls' Generation.

YG decided on a head-on collision.

SM Entertainment appeared unfazed by this challenge. They have been continually promoting the new title song "Mr. Mr." by releasing small bits of content at a time. Of course, with the news of 2NE1's comeback also happening in the same time frame, the spotlight that should have been Girls' Generation's alone is now being shared with 2NE1.

K-Pop music scene today requires a comeback star or group to have a dominating performance in the first week or two of their comeback in order to keep up with other groups who are still performing. It is not uncommon to see most entertainment companies play their best cards, including TV appearances and variety shows, within the first two weeks.

This may be a factor due to the fact that Girls' Generation is releasing "Mr. Mr." on or around February 19th, while 2NE1 is set to release their music video on the 28th of February and debuting through their concert the very next day on March 1st.

It may be a factor that determines who gets the most love early, but it still won't matter much to these two teams because they are groups known for their steady popularity.

Girls' Generation will not disappear with just one week of success, and 2NE1 will not sink just because they begin a week later. The only interesting part will be when they take to the stages of the same music show. Who will get the number one spot? That's the question.

So was it a gamble for YG Yang Hyun Suk to do as he did? Yes, but he was not reaching when he pitted 2NE1 against Girls' Generation.

YG faced one of its most disappointing seasons last year when their 3rd quarter financial evaluation was subpar. They were not able to draw in more investors for their own efforts. Many investors began to look away from YG because many of the same people stated that YG would also suffer loss into the 4th quarter.

That meant that YG Yang Hyun Suk had to do something drastic in order to keep their investors happy and bring more people to invest in the company.

It's not easy to topple the hold that Girls' Generation has on the K-Pop scene. They are the most popular and longest-running girl group in Korea. They demand attention wherever they go.

That's why it will ultimately help 2NE1. Not only will they receive free publicity, but 2NE1 has a very real chance to knock off Girls' Generation from their dominance. Just keeping up with Girls' Generation will bring them attention.

If they surpass Girls' Generation, the sky's the limit for them. They will effectively end the dominant reigns that SM Entertainment has had in the idol-star scene for about 20 years.

2NE1's success will play well to the investors as well.

These are few of the reasons why SM and YG's battle is special. Does SM CEO Lee Soo Man have something up his sleeve? With such ramifications in the air, the two groups are diligently preparing for their comeback albums.

Tagged :  YG Entertainment, SM Entertainment, Yang Hyun Suk, Lee Soo Man, Girls Generation, 2NE1

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