Posted by : KPopRanter August 13, 2013

It should be a fact everywhere--SM Entertainment and YG Entertainment are the most influential, powerful and riches companies in all of Korean entertainment. With both establishing in the mid-90s, they came to raise numerous idols groups which all dominated the Korean pop music market. Though there's nothing wrong with a little competition, it seems like this year has got to be one of the fiercest years between the two, both companies giving their all, releasing new performers, giving their own entertainers comebacks from left to right and also promising new things like more appearances, more sub-units and more ways to spend money in order to win against each other.
With the first half of 2013 revenues released, one can only assume that YG'll come up victorious.

YG Entertainment saw the biggest jump in gross profit. YG Entertainment’s business profit was 6,292,000,000 KRW (approximately $5.6 million USD), which is more than a 44.3% increase over the same period last year. Their total sales came in at 29,086,400,000 KRW (approximately $25.8 million USD), and their net profit added up to 4,164,000,000 KRW (approximately $3.7 million USD).
YG Entertainment explained, “As our artists’ overseas activities become more and more active, their royalties and sales increased. Big Bang and 2NE1‘s world tours’ profits were included for the first quarter.”
SM Entertainment, however, saw a huge loss of 80.0% in net profit compared to the same period last year, seeing only 2,003,000,000 KRW (approximately $1.8 million USD). Their gross profit fell 72.1% to 5,076,000,000 KRW (approximately $4.5 million USD) while their sales rose a small percentage of 0.7% to 49,986,000,000 KRW (approximately $44.3 million USD).
But SM Entertainment wasn’t fazed. The revenue from all of their concerts in the first quarter will be factored into the earning reports of the second and following quarters, meaning that their net profit reflected the losses invested into the concerts, but didn’t include the profits from said concerts. Also, SM C&C invested into a company to create video concerts in the first quarter of the year. SM said, “There are various big concerts that will be factored in the 2nd quarter, such as Girls’ Generation’s Japanese tour, TVXQ’s Japanese Dome tour, and SM Town Live. EXO is also going to start promoting actively in Korea and China. The artists’ various promotions will spring on a new momentum.”

However, with news of SM Entertainment's attack in the second half of 2013, there's no knowing what will happen.

On SM Entertainment's side:
• Another Girls' Generation comeback revealed by Tiffany (Japanese, English or Korean?), world tour
• Another TaeTiSeo comeback revealed by Tiffany
• EXO - comebacks, store
• f(x) - Pink Tape
• SHINee - Misconceptions of Everyone Who Exists, Japanese stuff
• Henry - Trap
• Apparently, some tours from TVXQ & Japanese comeback
• Super Junior world tour
• Small bit of BoA in acting, song 'Disturbance', OSTs

However, with Girls' Generation's recent fall in sales in both Japan and Korea, lack of Super Junior, BoA (Disturbance didn't chart well if comparing to previous) and TVXQ (other than their tour and Japan) whom are still big contributors to the profit there might be some trouble ahead.

On YG Entertainment's side:
• Lee Hi - comeback
• Akdong Musician - lots of random bits of songs that charted prior to YG singing and post
• Kang Seung Yoon - debut & 2 more songs planned for this year
• Taeyang comeback, Seungri comeback in Korea & Japan, Daesung concert
• G-Dragon rumored debut in Japan, comeback, world tour
• Big Bang working on a new album and another world tour revealed by Taeyang
• 2NE1 comebacks, world tour, American stuff with Will.I.Am
• CL - solo debut
• PSY - everywhere, comeback
• New girl group debut and maybe new boy group WINNER this year

However, with the lack of Akdong Musician (albums or legit comeback songs and music videos) which already proved to be great in digital sales, the new girl group continuously pushed back and the boy group being a competition, no one knows what'll happen. 

My thoughts are that it'll be extremely close and since both companies aren't actually rocking in both digital and physical sales, it's hard to tell. Not to mention, it seems like both are on top when it comes to world tours by their biggest money-makers (SNSD, SuJu, TVXQ - Big Bang, Daesung, G-Dragon, 2NE1), the comebacks by almost every single artist in each company, debuts of new artists (Henry - KSY, new groups?), activities of sub-units, sub-groups or solos from groups (Super Junior-M, TTS - CL, Taeyang, Seungri, Daesung, G-Dragon, KSY?, CL) and other things that'll help boost their revenue just a bit more (opening stores, endorsements, clothing brands), it seems like they'll be close. But with my thoughts, I feel as if if Girls' Generation chooses what kind of album they'll release and it's not a shitty English one and the plans of TTS's comeback follows through and the song is good, as well as the tours get added into the revenue (first half of the year was YG's but probably because they didn't add in the tour revenue) they might win the race however it seems like YG Entertainment is really doing a lot this year in order to win and if all the plans go as said (all the comebacks from Big Bang members as well as Big Bang themselves, the 2nd world tour, girl group & boy group, more KSY), then they can maybe win.

Who do you think will end up victorious this year? SM Entertainment or YG Entertainment?
Voice your opinions below.

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{ 2 comments... read them below or Comment }

  1. SM is a bigger company (even bigger now with the addition of Woolim) so they're going to finish the year with the most revenue and profit.

    Maybe revenue growth should be the benchmark stat. In which case, I have no idea who will "win". Seems like SM has been having the better year so far.


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