The Company's Secret Weapon: The Internet
K-pop is finally taking over the internet, and it is not exactly a bad thing for entertainment companies seeking to expand their music empire as they rack up company capital while globalizing the hallyu wave.
Korean popular culture is beginning to expand to almost every corner of the globe in a matter of seconds. All it takes is one simple click of a notification and you’re on the fast track to watching your favorite group’s comeback video. It is so simple to watch, stream, or even keep track of your favorite idols on social media platforms or streaming websites. Yet, little did you know, you are contributing to the promotional tactics of the entertainment companies in which your favorite artists reside. But before we dive into how these companies make use of your share button, let’s take a step back in time until about the second generation of Hallyu.
The second generation of Hallyu was just around the time media products and the internet had a major boom around the globe. The mechanism of the second generation of the Korean Wave entailed K-pop music’s rise to international popularity through YouTube and I-tunes, which led to TV appearances. Nothing could have been more perfectly timed than the second wave which contained the first exposures of K-pop. Mixed with the technological advancements of the world’s beloved internet, and you have the means to stream anything you want. Nothing could have come together so perfectly like the second wave of Hallyu.
The use of the internet did not stop there. With streaming sites like YouTube and I-tunes, followed the ever-growing use of social media. This phenomenon conveniently spiked during the third generation of Hallyu. The number of social media users in 2010 was approximately 0.97 billion. But this number increased to 2.14 billion in 2015 and is expected to rise to 3.09 billion by 2021. This meant that idols could also take their fanbase to social media such as Instagram for example, and even see them live doing everyday activities. Now here is where the beloved entertainment companies come into play.
The most known major companies known to fans are SM, YG, and JYP entertainment. Being around during the second generation of Hallyu gave these three companies just enough marketing strategy to see what makes fans crave more. Focusing on the business potential of social media, the K-pop entertainment industry utilizes various channels to promote music videos and to communicate with global audiences. This allows the ease of simple posting the latest comeback online for fans to view, like, and comment. Along with releasing new music videos and related teasers on YouTube, entertainment agencies open and manage Facebook and Twitter accounts to meet their overall social media strategy.
This follows closely to the Instagram example I gave before. Entertainment companies will ultimately seek to open different accounts on all major social media platforms so that fans can conveniently keep track of updates. This also aids in the streaming and sharing process that takes place. SM Entertainment’s CEO, Kim Young-min stated, “… unlike TV and radio, YouTube is the first global mechanism that allows producers like us to advertise our music while instantly selling it by charging fees either to downloaders or to advertisers.” Not only does this process mean more expansion of K-pop around the globe, but it also means more business benefits and opportunities that come for these companies' future.
Overall, the massive use of incoming fans to hallyu not only meant more streaming and interactions with their favorite idol groups, but also the increased revenue companies received from streaming videos and content. Turns out fans plus the internet does equal to business success after all. You’re welcome SM Entertainment!
Sources:
Ahn, Joongho. Oh, Sehwan. Kim Hyunjung. “Korean Pop Takes Off! Social Media Strategy of Korean Entertainment Industry.” Research Gate. July 2013. https://www.researchgate.net/publication/261385079_Korean_pop_takes_off_Social_media_strategy_of_Korean_entertainment_industry (Accessed 1 Sept, 2020)
Song, Sooho. “The Evolution of the Korean Wave: How is the Third Generation Different from Previous Ones?” Korea Observer. 2020. https://search-proquest-com.mutex.gmu.edu/docview/2378098189?accountid=14541 (Accessed 26 Aug 2020)
