Jaejoong recently unveiled the staggering cost of launching an idol group in a candid discussion.
Appearing on the Netflix variety show 'Try? Choo-ry!', the former TVXQ member shed light on his plans to introduce a new boy group following his successful production of the girl group SAY MY NAME.
During the episode, Choo Sung Hoon probed Jaejoong on the financial challenges faced by idols. Jaejoong broke down the reality, stating, "Ideally, a group should start turning a profit around three years post debut... It's a hefty investment, averaging around 20 Billion KRW (13.7 million USD) annually to manage two groups."
Jaejoong's insights were rooted in the workings of the K-pop industry, where companies undertake extensive pre-debut groundwork. This includes talent scouting, long-term training, and content creation, all before any revenue streams materialize.
The financial journey commences even prior to talent discovery, with agencies investing in global auditions, incurring expenses for recruitment, travel, and venue bookings. Some go as far as pouring in millions upfront to craft and air audition TV programs.
As trainees dive into rigorous preparation, costs spiral upwards. Alongside music and dance lessons, trainees undergo a gamut of training, from camera skills to languages and even appearance refinement. Post debut confirmation, agencies offer living arrangements to streamline logistics.
The debut phase sees costs escalate further, with rookie competition prompting the release of pre-albums and multiple music videos, inflating content production expenses. Social media promotions add to the budget, with substantial sums needed for effective marketing strategies.
An industry insider emphasized the pivotal role of social media in rookie success, noting the escalating cost disparity between large and small agencies, dubbed the 'marketing wealth gap.'
Amidst industry dialogue on the intensified pace of idol life cycles, unconventional approaches like the formation of QWER—comprising creators, TikTokers, and ex-idols—on a modest budget have gained traction. Unlike traditional groups, QWER documented their journey to debut through online content, fostering fan engagement and growth narrative.
Kim Gye Ran, the mastermind behind QWER's launch, divulged their cost-efficient model, highlighting their swift debut and cost effectiveness vis-a-vis conventional idols. By prioritizing live events over traditional broadcasts, QWER minimized expenses while honing their craft. Impressively, they began reaping rewards merely ten months post debut.
QWER stands as a testament to innovative strategies reshaping the idol landscape, showcasing a blend of creativity, audience targeting, and cost-effective planning. While diverging from conventional norms, QWER's success story underscores a new wave in idol group management.