JYP is Sinking - Falling Behind SM and YG

Is JYP Entertainment still a part of the "Big 3"? Are they one of the three most prominent music entertainment companies in Korea? Not anymore, at least according to the data presented.

JYP Entertainment was one of the three entertainment companies that helped shape the K-Pop culture. They successfully produced g.o.d and Rain and is currently managing superstar idol groups Wonder Girls, 2PM, 2AM, miss A as well as Sunmi, Baek A Yeon, and 15&.

However, they are not even in the conversation when K-Pop market shares are being compared. SM Entertainment has 30.3% of the market, while YG Entertainment has 14.9% of the market. That puts them at first and second place when it comes to the top ten entertainment companies that hold a place in the K-Pop market. JYP is not even in the top ten.

JYP doesn't have a digital presence, either. YG is the dominant first place with 17.6% of all digital music revenues, while SM is at sixth place with 4.3%. Again, JYP is not even in the top ten.

As is such, JYP's revenue is at an all time low. Their revenue for the 3rd quarter of last year was approximately $2.4 million. This is about $600,000 lower than the 3rd quarter of 2012. SM's revenue in the same period was approxiamtely $78 million, while YG's revenue in the same period was approximately $28 million. When compared to the 3rd quarter of 2012, SM had a sixteen fold revenue increase, and YG's revenue also multiplied by seven. Just comparing these numbers shows that JYP is no longer a viable competitor to YG or SM.

Their operational costs are also inefficiently high, and the resulting loss paired with their low revenue flow caused them to take a dive in the Kosdaq index. JYP Entertainment, as of 3:00 PM of March 5th, are 169th on the Kosdaq Index. SM Entertainment is 12th, and YG Entertainment is 29th.

Will g.o.d's comeback help JYP? Not at all. First off all, g.o.d is no longer a JYP group. Second of all, g.o.d's comeback overlaps 2PM's comeback, which may hinder the revenue normally generated by 2PM.

JYP Entertainment has responded by expanding their concert lineup as well as becoming concert producers themselves. While they previously relied on CJ E&M to produce their concert, JYP is now looking to produce their own concert in order to save costs and produce higher revenue.

While SM and YG are hunting for top flight actors and actresses, JYP is trying to stay focused on the music. A JYP representative stated, "By installing a concert producing team within JYP, we will be able to generate a higher revenue per concert while minimizing costs. By self-producing larger concerts that tour Asia or US Cities, JYP will be able to bounce back financially."

Tags
JYP Entertainment
G.O.D.
Rain
Wonder Girls
2PM
2AM
miss A
Sunmi
Baek A Yeon
15&
SM Entertainment
YG Entertainment
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