What is the next step of Bighit after BTS to go global?

Big Hit Entertainment (Big Hit), which owns BTS, is receiving unusual attention. The evidence is that there are many debates surrounding Big Hit, which debuted on the stock market on October 15.

On the first day of its listing, shares of Big Hit started at 270,000 won, with a public offering price of 135,000 won or 160 percent higher. And it hit a record high of 351,000 won less than an hour later. However, the upward trend did not last a day. After closing in the 250,000 won range on the first day, it continued to decline day after day. At the end of October, the price fell to public offering price level.

 

Some say that the value of Big Hit is too high due to the Korean Wave. Although there are still Grammy awards left as BTS became the first Korean singer to top Billboard's main single chart "Hot 100," it is said that BTS has achieved everything it can achieve. The key is Big Hit's tomorrow. Attention is drawn to what title BTS will surprise Koreans tomorrow and what new artists will surprise the world.

Fortunately, in 2018, BTS decided to renew its contract for seven years with Big Hit about a year before the contract expires. At that time, BTS said, "I respect mentor Bang Si-hyuk." Bang was known to have had a strong relationship with the BTS members even before their debut. Ahead of the listing, Bang also donated 68,385 shares to all of the BTS members.

But Bang's leadership has recently faced new challenges. The performance of Big Hit and BTS began to be measured at daily stock prices. Now the market is calling for Big Hit to have a more stable portfolio.

For Big Hit, BTS is now a double-edged sword. Most of the revenue comes from BTS, as BTS members are about to join the army. According to the Big Hit Securities Report, the proportion of BTS in sales was 98.2% in 2018 and 97.4% in 2019. It also accounted for 87.7 percent in the first half of this year.

 

Although the military service law revision has delayed BTS's enlistment, Big Hit needs an alternative because it is a postponement, not an exemption. However, the group Big Hit raised on its own is still less influential. TXT, a boy band that was introduced in March last year, is growing little by little, but is still a rookie.

First of all, Big Hit is responding by absorbing other entertainment companies. Currently, the companies that joined the Big Hit label division are Source Music, the agency of girl group "GFRIEND," and Pledis Entertainment, the agency of boy bands "NU'EST" and "Seventeen." In particular, SEVENTEEN has been making its mark since joining the Big Hit division, having recently become a double million seller and rising in Japan.

 

Big Hit is preparing to go one step further from planning and producing content and become a platform company. "We will move forward to become the world's best entertainment lifestyle platform company," Bang said. Specifically, the idea is to "continue to discover models that produce content, commercialize it, and implement all of this within Big Hit's platform."

Under such a plan, Big Hit is recruiting talent regardless of industries such as IT and games as well as entertainment. The number of Big Hit employees exceeded 950 in October this year, compared to just 250 in early last year.

 

Big Hit is especially interested in Weverse, which advocates the global community. Like other K-pop singers before, BTS communicated with fans in real time through Naver's "V LIVE." But from some point on, They've been putting more power on Weverse. They will communicate with fans in real time and also unveil their main schedule here first.

With the platform gaining global attention, singers who are not affiliated with Big Hit have recently begun to actively participate. Sunmi from JYP's group "Wonder Girls," CL from YG's "2NE1" and Henry from SM's group "Super Junior M" are communicating with fans through Weverse.

Considering its past moves, Big Hit seems to be steadily taking its stride as a content platform.

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