YG Entertainmentis predicted to post the weakest performance among the major companies.
A significant factor in the entertainment sectors struggles is weak album sales.
Stricter regulations in China limiting fan-driven fundraising for celebrities have reduced bulk album purchases by K-pop fans.
YG debuted the multinational girl groupBABYMONSTER, while SM launched the UK boy groupdearALICE.
HYBE introduced a U.S.-based localized K-pop group,KATSEYE, through its K-pop production system.
These efforts resulted in higher upfront costs.
Experts anticipate improvement in 2025s latter half as BTS and BLACKPINKs full group activities are scheduled to resume.
Additionally, rookie groups such as HYBEsILLIT,Pledis EntertainmentsTWS, and SMsNCT WISHare expected to start generating revenue.
Among the four companies, YG Entertainment is the only one expected to post a deficit in 2024.
YG plans to use this restructuring as a foundation for reinforcing its leadership in the music industry in 2025.
Regulatory reforms and incentives are needed to enable smaller companies to create innovative artists.
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