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Big Hit Entertainment

Big Hit Entertainment
Native name
(주) 빅히트 엔터테인먼트
Big hiteu enteoteinmeonteu
Private
IndustryEntertainment
Genre
FoundedFebruary 1, 2005 (2005-02-01)
FounderBang Si-hyuk
Headquarters
Seoul Gangnam-gu, 5 30-gil, Hakdong-ro, Floor Yangjin Plaza 5F
,
Key people
  • Bang Si-hyuk (co-CEO)
  • Lenzo Yoon (co-CEO)
Services
  • Music production
  • Licensing
  • Record distribution
Revenue
  • Increase US$189.38 million (2018)
  • Increase US$44.41 million (2018)
Owner
Number of employees
Approx. 400 (As of August 2019)[2]
[3]
SubsidiariesSource Music (2019-present)
Websitebighitcorp.com

Big Hit Entertainment, Co. (Korean빅히트엔터테인먼트) is a South Korean entertainment company established in 2005 by Bang Si-hyuk. It currently manages soloist Lee Hyun and idol groups BTS and TXT. Since July 2019, Big Hit has one subsidiary label, Source Music, who manages the idol group GFriend.

History

Big Hit Entertainment was founded on February 1, 2005,[4] and signed the vocal trio 8Eight, consisting of Lee Hyun, Baek Chan, and Joo Hee, in 2007.

In 2010, Big Hit Entertainment and JYP Entertainment signed a joint management contract over the boy group 2AM.[5] That year, Bang Si-hyuk launched nationwide auditions and signed RM as the first member of BTS, who was then followed by the other members of the group.[6] BTS made their debut under Big Hit in 2013.[7]

In 2012, the company signed Lim Jeong-hee,[8] and the girl group GLAM was formed as a collaboration between Source Music and Big Hit entertainment. The group was active until 2014, when they disbanded due to a controversy over one of the members, Kim Da-hee, who was sentenced to prison following accusations of blackmail in relation to actor Lee Byung-hun. She was later identified as a sasaeng fan (a dangerously obsessive fan). [9][10][11]

Following the end of the joint contract between Big Hit and JYP Entertainment in April 2014, three of the 2AM members returned to JYP, while Lee Chang-min stayed with Big Hit in order to continue with his solo career and as part of the duo Homme.[5] The year also saw the disbandment of 8Eight after Baek Chan and Joo Hee's contracts with Big Hit ended.

In May 2015, Signal Entertainment Group (Signal), a KOSDAQ-listed company specializing in artist management and television production, acquired Big Hit through a KR₩6 billion (~ million) convertible bond. Signal also owns Better ENT, the agency founded by actor Song Seung-heon, as well as another record label, Jungle Entertainment.[12]

In May 2015, Lim Jeong-hee parted ways with Big Hit Entertainment, following the expiration of her three-year contract with the agency.[8]

In early 2017, Big Hit ended their stake relationship with Signal Entertainment Group. Big Hit issued a 6 billion won convertible bond Signal Entertainment Group in 2015. After a year, Signal Entertainment Group made a full settlement of the bonds.[13][14]

In February 2018, Homme disbanded after member Changmin's contract came to an end. He left the company to start his own agency, while Lee Hyun continued on as a solo artist.[15] Later that year in October, Big Hit Entertainment announced that BTS had renewed and extended their contract with them for seven more years.[16]

Former Big Hit CBO Lenzo Yoon was appointed co-CEO of Big Hit Entertainment with Bang Si-hyuk in March 2019.[17] Yoon will focus on the business components of the company while Bang will focus on creative production.[18]

Company value and investments

In 2007, Big Hit Entertainment was near bankruptcy.[19] Due to the success of early groups 8Eight and 2AM, Bang was able to keep the company afloat[citation needed] and later created the group BTS in 2013. Varying reports consider the current total value of the company at roughly 1T KRW (~891.5M USD).[20] Many consider the company's profit in both the Western and Eastern markets, Big Hit's relatively lenient policies towards their idols' creativity, and innovative music styles to be a cornerstone of the label's success.[citation needed]

Big Hit Entertainment currently operates as a private company. Bang Si-hyuk remains the largest shareholder of Big Hit stock. In March 2017, the Korean mobile gaming company Netmarble acquired the second largest percentage of the company, paying a reported 201.4B KRW (191.8M USD) for 25.71%.[21] The CEO of Netmarble, Bang Joon-Hyuk, and Bang Si-hyuk are cousins. [22]

In March 2018, Big Hit publicized its earnings for the first time, reporting revenue at 92.4B KRW (~82M USD). [23] If entered into an IPO, the company itself could reach a value of up to 700B KRW (~624M USD), potentially ousting the typically powerful "Big 3" companies SM Entertainment, JYP Entertainment, and YG Entertainment. This would make CEO Bang the richest in the South Korean entertainment business due to his large shareholding position, and leave him with personal ownership value of roughly 350B KRW (~314M USD). [24]

In August 2018, Big Hit Entertainment and CJ E&M, another Korean entertainment agency, released information stating plans to create a joint company. Filed under the name Belief, the company will reportedly be split 52% to CJ E&M, and 48% to Big Hit.[25] The group is set to debut in 2020.[26] CJ E&M's recent foray into idol production television shows such as Produce 101 and Big Hit's growing global auditions are likely to be the venture philosophy of the new company.

In October 2018, private investment firm STIC Investments received a reported 12% share of Big Hit Entertainment, an investment of roughly 104B KRW (~93M USD).[27] According to the Investor, Big Hit's posted revenue and operating profit of 92.4B (~82M USD) and 32.5B KRW (~29M USD) is expected to return more than double at 230B (~205M USD) and 83B KRW (~74M USD) by the end of 2018.[28] Big Hit was voted best investment company of the year for 2018 at the Korea VC Awards.[29]

In March 2019 the company announced their 2018 audit report. They experienced a 132% increase in sales compared to 2017 making approximately 214.2B KRW, or about US$ 189.38 million. They had a 97% percent increase in operating profit for the year making 64.1B KRW (US$56.72 million) and a 105% percent increase in net profit making 50.2B KRW (US$ $44.41 million).[30]

Partnerships

In the past Big Hit Entertainment collaborated with JYP Entertainment and Source Music to manage groups, but the relationships ended upon disbandment.[31]

Agencies

Subsidiary Labels

Philanthropy

It was revealed the company donated 30 million won, roughly US$25,500, to the Sewol Disaster in 2014.[33]

Artists

Former artists

Discography

References

  1. ^ Choi, Man-soo (March 27, 2018). "양현석 넘은 박진영… BTS 대박에 방시혁 1위". Hankyung (in Korean). Retrieved May 6, 2018.
  2. ^ "Big Hit Entertainment (in "Who We Are" section)".
  3. ^ Hwang, Hye-jin (February 8, 2019). "빅히트 측 "사옥 이전 계획 없다"(공식입장)" [Big Hit: "There is no plan to relocate the building" (official position)]. Newsen (in Korean). Retrieved February 8, 2019.
  4. ^ "Introduction". BigHit Entertainment. Archived from the original on November 1, 2017. Retrieved July 24, 2015.
  5. ^ a b "KPOP NEWS - 2AM's Jo Kwon, Im Seulong, and Jung Jin Woon Return to JYP Entertainment". Mwave. Archived from the original on March 12, 2016. Retrieved June 30, 2016.
  6. ^ "[INTERVIEW] Bangtan Boys". Cuvism Magazine (in Korean). July 22, 2013. Archived from the original on June 6, 2015. Retrieved July 18, 2015.
  7. ^ "KPOP NEWS - [Video] BTS Asks about Your Dreams in 'No More Dream' MV". Mwave. Retrieved June 30, 2016.
  8. ^ a b "KPOP NEWS - Big Hit Reveals Lim Jeong Hee′s Contract Ended in May". Mwave. Archived from the original on December 30, 2015. Retrieved June 30, 2016.
  9. ^ 글램, 결국 3년 만에 해체…'이병헌 협박女' 다희-이지연 실형 선고 : 스포츠조선. Sports Chosun (in Korean). Retrieved June 30, 2016.
  10. ^ 글램 다희, 모델 친구와 음담패설 영상 유포 협박 "세계적 스타라 거액 요구" 이병헌 공식입장은? : 스포츠조선. Sports Chosun (in Korean). Retrieved June 30, 2016.
  11. ^ "Lee Byung-hun repeats apology upon returning home". The Korea Herald. Retrieved November 15, 2015.
  12. ^ 씨그널엔터테인먼트그룹 "빅히트엔터 CB 60억 인수" [Signal Entertainment Group acquires Big Hit Ent for 60 billion "through CB"]. eDaily (in Korean). Retrieved February 4, 2016.
  13. ^ 빅히트엔터, 영업이익 100억 돌파…VC '흐뭇'. The Bell (in Korean). Retrieved February 28, 2017.
  14. ^ "Signal Entertainment Group to sell entire shares of entertainment firm for 6.2 bln won". Reuters. October 6, 2016. Archived from the original on March 23, 2017. Retrieved August 3, 2019.
  15. ^ a b [공식입장] 이창민, 빅히트와 전속계약 만료 "1인 기획사 설립" [Lee Changmin's contract with Bighit Entertainment expires, "will start his own agency"]. Xsports News (in Korean). February 1, 2018. Retrieved August 3, 2019 – via Naver.
  16. ^ Herman, Tamar (October 17, 2018). "BTS Extend Contracts With Big Hit Entertainment Until 2026". Forbes. Retrieved October 19, 2018.
  17. ^ Herman, Tamar (March 7, 2019). "Big Hit Entertainment Appoints New Co-CEO Following Rise Of BTS, Launch Of TXT". Forbes. Retrieved April 19, 2019.
  18. ^ Lee, Jung-ho (March 6, 2019). 빅히트 '방탄 성장 주역' 윤석준 공동 대표이사 선임 [Big Hit 'Ballistic Growth Leader' Yoon Seok-jun appointed as co-CEO]. Star News (in Korean). Archived from the original on March 6, 2019. Retrieved August 3, 2019 – via Naver.
  19. ^ "Mogul Behind K-Pop Boy Band BTS Considers IPO".
  20. ^ "STIC Investments invests W104b in Big Hit". Retrieved October 16, 2018.
  21. ^ "Game maker becomes second largest shareholder of BTS' agency".
  22. ^ Ha, Sun-young (April 7, 2018). "Cousins unite as Netmarble buys stake in Bit Hit". Korea JoongAng Daily. Archived from the original on April 7, 2018. Retrieved August 3, 2019.
  23. ^ Lee, Ji-Yoo (March 26, 2018). "Expectations high for BTS-backed Big Hit Entertainment's IPO". The Investor. Archived from the original on November 7, 2018. Retrieved August 3, 2019 – via The Korea Herald.
  24. ^ Choi, Man-soo (March 27, 2018). "Archived copy" 양현석 넘은 박진영… BTS 대박에 방시혁 1위. Hankyung (in Korean). Archived from the original on July 29, 2019. Retrieved August 3, 2019.CS1 maint: archived copy as title (link)
  25. ^ 박보람 (July 31, 2018). "BTS' management agency teams up with CJ affiliate to launch entertainment firm". Yonhap News Agency. Retrieved October 16, 2018.
  26. ^ Kim, Bong-kee (March 12, 2019). "Entertainment Giants Team up to Manufacture 'Next BTS'". The Chosun Ilbo. Retrieved March 12, 2019.
  27. ^ "스틱인베스트, BTS에 1040억 베팅". www.paxnet.co.kr (in Korean). November 10, 2018. Archived from the original on August 3, 2019. Retrieved August 3, 2019.
  28. ^ "STIC Investments invests W104b in Big Hit". Retrieved October 16, 2018.
  29. ^ Lee, Sang-yeon (December 6, 2018). 한국벤처투자, ‘Korea VC Awards 2018’ 개최. Money Today (in Korean). Retrieved August 3, 2019 – via Naver.
  30. ^ Herman, Tamar (March 20, 2019). "BTS Helps Label Big Hit Entertainment to Record Result In 2018". Billboard. Retrieved March 20, 2019.
  31. ^ Herman, Tamar (August 2, 2018). "Korean Conglomerate CJ E&M And BTS's Label Big Hit Entertainment To Create Music Venture". Forbes. Retrieved March 12, 2019.
  32. ^ "BTS' management company to move into new building". The Korea Herald. July 2, 2019.
  33. ^ "[단독]방탄소년단, 세월호 참사 416가족협의회에 1억원 기부". Naver (in Korean). January 21, 2017. Retrieved May 23, 2019.
  34. ^ Herman, Tamar (May 31, 2018). "7 Factors That Helped Propel BTS To No. 1 On The Billboard 200". Forbes. Retrieved March 11, 2019.
  35. ^ a b ""Siêu tân binh" TXT: Có làm nên khác biệt hay chỉ "gây bão" nhờ hào quang của BTS?". kenh14 (in Vietnamese). March 5, 2019. Retrieved March 11, 2019.
  36. ^ a b Kim, Arin (December 11, 2018). "BTS' team sweeps four awards at 2018 MAMA in Seoul". The Jakarta Post. Retrieved March 11, 2019.

External links