Why Are Music Entertainment Companies Embracing Actors?

Giant music entertainment companies are expanding by signing actors and actresses. Not only are the "Big 3" of SM Entertainment, YG Entertainment, and JYP Entertainment loading up with actors, but the small up-and-comers such as C-JeS Entertainment and FNC Entertainment are also aggressively expanding by signing actors to their company. These companies are expanding their profitability by reaching into the closest market to theirs. While K-Pop remains a hot export item, dramas such as "The Heirs" also are becoming widely popularized and profitable. These major entertainment companies now have the ability to produce their own variety shows or drama series as well. It is widely believed by industry professionals that the more actors and actresses they can recruit, these companies will be able to independently produce their own content without being slowed down or barred by TV executives.

A financial analyst explained the trend, saying, "Music entertainment companies must find a different source of income. There is a limit to how much a company can earn by producing star idol groups and exporting their music. By gaining international fame, many of the current music industry giants have come to that same conclusion; hence the reason for this move. Dramas such as 'Respond 1994' and 'Monstar' are 'cross-over dramas' that introduce music to the viewers and in turn succeed by the wide popularization of that music. This kind of model is what the marriage of actors and K-Pop superstars will allow. Furthermore, this kind of expansion squashes the notion that entertainment companies' stocks are fragile because the big music companies are not recruiting small fries but established Hallyu actors and actresses."

Let's take a look at how the five entertainment companies mentioned - SM, YG, JYP, FNC, and C-JeS entertainment companies - are going about this trend.

As the biggest entertainment company in Korea, SM had already established the acting management company SM C&C back in 2012. They also quickly absorbed AM Entertainment company and by way of said absorption added top actors Jang Dong Gun, Kim Ha Neul, Han Chae Young as well as top MC's Kang Ho Dong and Shin Dong Yup. They also bought media producing company Hoon Media and produced their own drama "To The Beautiful You". "The Prime Minister and I", which stars Girls' Generation's Yoona, was also produced by SM C&C. Variety shows such as "Cool Kiz On The Block" and "The Condition of Man" are also produced by SM C&C.

An SM C&C executive spoke on the current status of SM's aggressive expansion, saying, "Because we got an early start, we were able to recruit a solid lineup of capable actors and actresses. We have about 20 top actors and actresses that we are managing, so we will slow down on the recruitment end and focus on managing these actors and actresses successfully. We are planning to produce two dramas this year as well. Although there has been a few hiccups along the way, producing two dramas have allowed us to gain more experience to successfully produce more pieces."

YG Entertainment is on a hot streak of recruiting top talents, including Choi Ji Woo and Cha Seung Won. They also added veteran actors Im Ye Jin and Jang Hyun Sung. YG always managed a few actresses on the side including Sean's wife, Jung Hye Young, Tablo's wife Kang Hye Jung(who has since signed with C-Jes Entertainment), Koo Hye Sun, and Yoo In Na. However, by expanding the roster considerably with various age groups and different style of actors, YG will be able to tackle the movies and drama market from various angles, including the management of supporting actors and actresses. YG has produced a few of their own entertainment shows such as "Who Is Next:WIN" and "WINNER TV", so it will be interesting to see how this production power will match up to their cast of actors and actresses.

YG's satellite companies YG Japan and YG Asia(located in Hong Kong) are perfect for other actors and actresses to branch out internationally, so the union between top shelf actors and YG is largely expected to yield a win-win result for both parties. YG also revealed that they have invested and partnered up with "K-Plus", a modelling firm.

JYP Entertainment did not aggressively expand like the other two companies, but they have added talents here and there throughout the years and now have a few noteworthy actors on hand. Furthermore, rather than recruit actors and actresses, JYP has successfully converted many of their idol stars into legitimate actors, which includes 2PM's Chansung, Taecyeon, Junho as well as miss A's Suzy. JYP Entertainment also has some producing experience because they produced the popular KBS Series "Dream High".

A JYP Entertainment representative stated, "While there are no plans of further expansion, we are not against the idea. As a company that is already very experienced with actors and on the producing side, we feel that we are at a good place to go either way on that issue for now."

FNC Entertainment and C-JeS Entertainment has successfully entered the fray against the "Big Three". This is because when it comes to recruiting and managing actors and actresses, even the big three companies are inexperienced. As a result, "smaller" companies like FNC Entertainment was able to sign top stars like Lee Dong Gun and Lee Da Hae as well as Yoon Jin Suh. They also produced KBS Drama "Mi Rae's Choice" last year and inserted their actors into the drama. As a company that is poised to enter the Kosdaq board next year, FNC is being recognized as a company that has the most sustainable model for profitability.

Last but not least is C-Jes Entertainment. C-Jes Entertainment surprised the entertainment industry by successfully signing up Korean movie superstars - that is, while they are not as well known internationally, the stars that they recruited are actors and actresses that almost guarantee a success. Legendary actors such as Seol Gyung Goo and Choi Min Sik signed with C-Jes, and the way they cater to actors and actresses lead other top stars such as Lee Jung Jae and Kang Hye Jung to follow suit. JYJ is increasing in their acting roles as well, with JYJ's Junsu becoming the top musical actor in Korea. Following suit, C-Jes Entertainment is currently planning on producing musicals as a means of expanding their revenues as well.

As these major companies expand, the outlook is that the viewers will receive better and better products as well. With modern technology gravitating toward internet TV, company-produced content may become more readily available.

Tags
SM Entertainment
YG Entertainment
JYP Entertainment
C-JeS Entertainment
FNC Entertainment
The Heirs
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