Big Hit Entertainment wins again: See how they boosted BTS’s net worth
Bangtan Boys – or BTS as they’re popularly called – are making waves in the music industry. They’re currently the most popular K-pop boy band in the world & not without reason. All BTS members; RM, Jin, Suga, J-Hope, Jimin, V, and Jungkook are not only talented but extremely empathetic & giving as well.
Lately, the K-pop outfit has been breaking all sorts of records. The music video for their song DNA hit 1.1 billion views on YouTube. Their music video for “Dynamite”, their latest single, has received over 500 million views. They even dethroned Taylor Swift from her position on the biggest Spotify debut record of 7.7742 million streams for “Cardigan” by registering 7.778 million streams on the debut day of “Dynamite”.
They are now preparing for the grand release of their new album BE in November. The success of their all-English song “Dynamite” hitting number 1 on the Billboard charts & the group overall has also brought in a lot of success for the record company behind them, Big Hit Entertainment.
Big Hit Entertainment’s big hits
BTS has brought Big Hit the biggest hits in all possible respects – from shows selling out completely to enormous revenues from merchandise sales, a fan base that’s loyal beyond measure, and massive pre-orders for albums. BTS has a track record for bringing in the big bucks.
Recently, riding on the wave of BTS’ soaring popularity, Big Hit Entertainment decided to go public with their Initial Public Offering (IPO). To no one’s surprise, the IPO ended up making the founder of Big Hit Entertainment, Bang Si-hyuk a billionaire.
In a gesture of sharing, Big Hit also gifted each member of BTS a part in the wealth, eventually making each of them $20 million richer, too. Here’s how it went down: Before going public, the company was valued at $4 billion. It had recorded an $86 million profit in 2019 & $249 million in just the first six months of 2020. The pandemic couldn’t deter them – the company or the band– from their milestones.
Show me the money
A month before the public offering Bang gave each member of the group 68,385 shares in the company ahead of its IPO. This would amount to $7.7 million in around 68,385 common shares for each of the band members.
Giving away 68,385 shares to each member of the band made sense, as BTS brought in around 97% of the company’s sales last year & more than 87% of the company’s revenue in the first half of 2020. In an industry plagued with exploitative practices where artists & businesses are perennially at a crossroads, this is refreshing.
Big Hit Entertainment’s IPO was really a big hit as the price of its share reached $236, more than double the original public offering price as per reports. The total value of the company is now reportedly $8.38 billion. With these numbers, the band members’ fortunes touched new highs as each BTS member walked away with over 6.7% of the total shares.
Boosting economy
The IPO didn’t just stir up the personal pockets of the band & the company, it also provided a major boost to the South Korean economy. The group’s merchandise sale & performances pull hordes of crowds, and even though tourism has been slow in 2020, the boy band has been a major economic asset for the entire country.
Worth mentioning is also the BTS official fandom, which is called the BTS ARMY. These official membership come with gifts & exclusive merchandise, as well as early access to tickets & music.
Owing to the devoted fandom, the group managed to garner more than 3.42 million pre-orders within the first week of the announcement of their previous album. Hopes are running high for their next album, too, for which pre-orders begin in November.
