New Jinx is famous and cancer in the 2-month girl group settlement period
A new change has also come for idol groups amid tectonic changes in the K-pop market. The timing of the first settlement, which was called the “dream goal,” has been noticeably accelerated because it can only be met after liquidating the initial investment that is naturally borne by debt upon debut. However, such good news does not apply to all groups. Still, other groups are complaining of difficulties in life without receiving their first settlement for years since their debut. What are the reasons for the more obvious settlement of the K-pop market, its name, and cancer?
Recently, the group Newsz appeared on tvN’s “You Quiz on the Block” and said it received its first settlement in two months after its debut.
At the time, Min Hee-jin, CEO of Ardor, said, “Newzins debuted on July 22nd and settled down in the third quarter (August to September). Thankfully, the sales of the music and album went well, so I was able to settle it with it said. In addition, the story of New Jin’s members, who received their first settlement in two months after their debut, gave gifts to their parents, and felt proud while buying the items they wanted to have.
Considering the settlement period of girl groups in the past, this is a surprisingly fast pace. In the past, girl group girlfriend Yuju said she received her first settlement in more than two years since her debut, and Momoland Yeonwoo mentioned the timing of the settlement by saying that the fee for the broadcast she appeared in three years after her debut was her first income. MAMAMOO, who received great attention at the same time as his debut and accelerated his activities, also said he received his first settlement in about eight months after his debut.
However, it is true that the first settlement period of about a year or two to three years is also quite fast among many girl groups. This is because the reality is that the group, which has not been properly illuminated since its debut and has not stood out in competition, will not receive its first settlement even for five to six years. Even if the company slowly records growth since its debut, the initial settlement period is often delayed if the initial investment is large.
A case in point is the recent conflict between LOONA and Chuu regarding the settlement. Blockberry Creative, a small and medium-sized agency, said that it took a lot of time for LOONA to reach a break-even point and settle the accounts for the members, but Chu lost trust in the agency due to the settlement and endless wait since her debut.
Although the issue of settlement has emerged due to the Girl of the Month incident, this is not just a problem for Girl of the Month. While the K-pop market expands its presence to the global stage and the amount of investment invested to launch each group increases, it has become difficult to quickly stand out and achieve a profit and loss quarter amid intensifying competition.
K-Idol’s first settlement, cancer, and the reason for deepening
In general, the agency’s initial investment, which idol group members have to liquidate after their debut, includes various additional expenses such as lesson fees, accommodation, meals, album and music video production costs, hair and makeup costs, and costume costs. The time when profits excluding the investment are generated is when singers receive their first settlement.
However, of course, not all profits go to the singer at this time, either. The company and the singer share the proceeds according to the original contract structure. In the past, it was common for certain members of the group to be equally distributed to all members, but recently, many agencies are said to choose a structure in which profits from personal activities are included only in the settlement of each member.
Most of the groups that succeeded in quickly receiving their first settlement despite their recent debut with huge production costs are “third and fourth generation” girl groups. This is also a change due to the increase in the appeal of the girl group itself. In the past, many girl group fandom were male fans, and male fans were relatively less purchasing power than female fans, so the girl group’s fandom itself has recently expanded significantly, resulting in a significant increase in overall profits. In fact, Ive recorded a single album million-seller a year after his debut, and Le Seraphim and Newzyn proved the changed game of the girl group by starting with a record of 300,000 in the beginning of their debut album. It is also important to note that album, music sales, and concert ticket power have also soared due to the expansion of the radius of activities into the global music market.
However, for the groups that haven’t been able to hit the so-called “one shot” since their debut, it’s just a star picking in the sky. Due to this situation, some people can often find part-time jobs for a living while working as an idol group. Of course, some agencies choose a salary settlement system to compensate for this (a way to settle some of the profits before collecting all the initial investments), but some point out that it has no significant effect on the amount that the members have to settle down anyway.
The K-pop market is expanding and more and more groups stand out, but the brightness and cancer surrounding the first settlement seem to be gradually deepening. It is time for the K-pop market to develop this situation in a better direction