Blackpink is on hiatus, Baby Monster can't save YG

Blackpink and Baby Monster. Photo: YG Entertainment

Stock market experts predict that YG Entertainment will have extremely poor performance in the second quarter of 2024. The Kpop industry estimates that YG's second quarter operating profit will be only around 300 million won.

"The delay in replacing the IP (innovative product) generation has led to YG's performance freezing," said Kim Hye Young, a researcher at Daol Investment & Securities.

According to securities companies, YG achieved revenue of about 100 billion won this quarter but left very little profit due to high investment costs.

Blackpink, YG's top money-making group, now has all four members (Jennie, Jisoo, Lisa, Rosé) working independently. Since Blackpink has not had any group activities since the end of last year, sales have dropped significantly.

Blackpink is YG's main money-making group, but is currently on hiatus, allowing the four members to pursue solo careers in different companies. Photo: Instagram

Rookie group Baby Monster (Rami, Asa, Rora, Ruka, Ahyeon, Pharita, Chiquita) continued to promote their new song and the company spent a lot of money. However, the group did not bring in any special profits except for albums, digital music, and fan meetings tours.

Blackpink doesn't make money and spending a huge amount of money on Baby Monster is something YG must face.

Because of this situation, the stock price also plummeted. YG's stock price rose to 97,000 won in May last year, now down 62% to 35,000 won in just over a year.

Blackpink's departure from YG's individual activities was a fatal blow to the company's stock price decline.

YG reportedly still has a market capitalization of 600 billion won, so it's unlikely they're actually in danger of bankruptcy. But the sharp drop in revenue is certainly a shock.

According to Ten Asia, what YG needs most right now is to promote Baby Monster. Only when Baby Monster takes the lead can the company get back on track and achieve sustainable growth.

YG invested heavily in Baby Monster but has not brought in big profits. Photo: YG Entertainment

The problem is that Baby Monster's momentum in the market is still not strong. The group's presence in Korea is very small compared to other girl groups such as aespa, LE SSERAFIM, NewJeans. Although Baby Monster is still receiving positive feedback from overseas, it is too early to consider them a top group.

However, things may improve as Baby Monster plans to release a full-length album in the second half of this year, and look forward to touring next year.

On top of that, Blackpink, who is a guaranteed source of profit for YG, is expected to release an album next year and hold a tour related to the album.

In addition, there are many predictions that YG will debut a new group next year. The news that 2NE1 will reunite for a special project is also expected to bring vitality to YG.

Finally, Ten Asia commented: "It is undeniable that YG has achieved shockingly poor results in this second quarter.

The most important thing now is the emergence of a new group that will lead Kpop. YG certainly has a glorious history, but that is just the past. They cannot rely on Blackpink anymore. YG really needs a new trump card."

Source: https://laodong.vn/giai-tri/blackpink-tam-dung-hoat-hoat-dong-baby-monster-chua-the-cuu-yg-1367794.ldo