An analyst from the business world gives insights into the assertion which states that HYBE can be described as an organization has only BTS
Big Hit Entertainment was able to grow into the HYBE Corporation that it is today, with a market capitalization in the region of 10.42 Trillion KRW (~8.7 Billion USD) because of the huge popularity of BTS.
It is a fact that, without BTS, HYBE would not have been the most popular entertainment firm within South Korea. Although the company started with humble beginnings with the first seven-member boy group, HYBE and BTS were successful in overcoming every obstacle that came their way. them.
Despite the colossal popularity and popularity, hatred and criticism is been unable to stop as people have said:
“HYBE is an organization with BTS and no other services.”
A lot of those who are critical of the company claim that HYBE does not have anything to boast of, other than their Billboard-topping BTS.
But one analyst was of a different opinion and offered his opinion on the statement. In a YouTube video of recent Business analyst Choi Jung Woo explained that HYBE Entertainment is a firm which is growing and is not only an entertainment company. He delves into figures on revenue and other details to show the growth of the company.
He explained that it’s the case that BTS is crucial and important to HYBE as the majority of the company’s revenues come from the BTS group. The year 2021 was the last time BTS was responsible for 60 percent of the company’s revenue However, he claimed that the remaining 40% of the revenue came from different sources other than BTS.
Then, he said that in the year 2019, BTS was responsible for 97% of the revenue of HYBE and in 2020 it was 85 percent, and by 2021 it was 60 percent. In addition, he pointed out that every the year HYBE earns more revenue from other sources other than BTS. BTS and HYBE’s revenues is growing every annually (580 Billion KRW/483 million USD in the year 2019, 790 Billion USD/658 Million USD in 2020 in 2020, and 1.2 Trillion KRW and 1 Billion USD by 2021). This is due to the fact that HYBE is expanding into different areas of business, for example, purchasing artists’ IP.
Thus, the analyst stated that HYBE is at present growing and shaping the structure of its business through diversification. In any company, a product which achieves rapid success is essential to be the foundation of the business. Similar to how BTS was the foundation for HYBE However, the company has already expanded across other businesses in order to establish other pillars, such as Weverse.
He said that Weverse has grown into a key component of HYBE and is earning a substantial amount of its revenues as the fan communications platform acquired massive artists like BLACKPINK the girl group that was acquired from an agency that is not HYBE’s. Furthermore, Weverse has also grown to offer a variety of services to its users and has differentiated it from other fan-communication platforms.