Unpacking K-Pop's Fan-Driven Business: Insights from RIIZE
, by Unboxify, 4 min reading time
The Intricacies of K-Pop's Business Model Explained by RIIZE 🎤
Understanding the K-Pop Industry's Fan-Centric Approach 📈
Hello, we’re RIIZE. K-Pop's business model is meticulously optimized for fans. It’s a dynamic genre that meets consumers' needs faster than any other music industry. K-Pop's evolution stems not from the artists themselves but from innovative ideas crafted by companies.
The Birth of a K-Pop Group: Concept First, Talent Second 🌱
In K-Pop, the inception of a group starts with a concept. Companies first outline a vision and then seek or cultivate talent to fit that specific mold. This rigorous selection begins from the casting stage, where agencies discover talented individuals and train them intensively according to their envisioned concept.
- Discovering Talented Kids
- Training According to a Concept
- Producing Existing Trainees
The training process is extensive and demanding. It encompasses a variety of skill enhancements like dance, vocal training, appearance improvement through weight management or plastic surgery, and even foreign language education. This often leads to a high dropout rate among trainees who might quit out of frustration.
From Aspiration to Reality: A Trainee's Journey 💪
I used to be a junior model. A major label noticed a photo of me, granting me an opportunity to transform into an idol. Initially, I lacked singing skills and underwent extensive basic vocal training. To hone my dance abilities, I engaged in core workouts and dynamics training.
Becoming an idol was always a dream motivated by a desire for love and attention from the public. However, the financial investment in cultivating trainees is colossal, with costs varying from company to company. Reports indicate it can take up to 1 billion won ($724,000) in two years or 5 billion won ($3.6 million) in three years. The industry demands substantial investment.
Embracing Challenges and Finding Joy ✨
Despite numerous concerns during our training period, holding onto the dream that our time would come kept us motivated. After joining the label, learning to dance and other skills presented a daunting challenge; however, it became a source of immense joy.
K-Pop’s success hinges on building and showcasing a cohesive team fantasy. In the end, the global strategy of K-Pop is predicated on how well this fantasy is displayed. Personally, I liked dancing and music from a young age. Moving to Korea from Japan was a positive step, allowing me to thrive in a different environment.
- Embrace new challenges
- Find joy in the process
- Hold onto dreams
The Drive to Learn and Adapt 🌍
I also have a strong desire to study English whenever I get the chance. Sungchan employs an app on his phone where a new English word appears on the screen each time he turns it on, encouraging daily use of the language. This kind of drive and adaptability is crucial in the ever-evolving K-Pop scene.
Revenue Streams and Global Reach 💰
Even before our debut, we received unexpected invitations from overseas for commercials and advertisements. Korean popular music generates revenue primarily through three main categories:
- Music and Album Sales
- IP Revenue from Goods and Advertisements
- Performance Revenue
We constantly engage with our fans, BRIIZE, through an app called Weverse. It’s a wonderful platform to receive immediate feedback and communicate with our audience.
Market Potential and Future Growth 🌱
There are four major K-Pop labels, yet their combined market capitalization stands at only about 13 trillion won ($9.3 billion). Despite having many outstanding acts, the K-Pop industry still lacks in terms of quantity. This suggests significant room for growth.
To make K-pop more mainstream, some suggest abandoning a bit of its traditional essence. Our goal is to grow steadily, even if it’s just a little bit at a time. Looking five or ten years into the future, I hope to overcome stage nervousness and simply enjoy the experience of performing.
Conclusion: The Path Forward for K-Pop 🚀
K-Pop's business model, with its fan-centric approach and meticulous preparation, sets it apart in the global music industry. From talent discovery and intensive training to building a comprehensive team fantasy, K-Pop continues to evolve, paving the way for future growth and mainstream acceptance.
- Fan-centric business model
- Intensive and meticulous training
- Significant financial investment
As we continue to embrace challenges and find joy in our journey, we remain optimistic about what lies ahead. Here’s to a future where K-Pop reaches unprecedented heights, captivating audiences worldwide.
Blog posts
-
, by Author Article title
-
, by Author Article title
-
, by Author Article title