The South Korean music power that is home to BTS and SEVENTEEN has revealed that it is entering the fiercely competitive and highly profitable label services sector. The company has announced its new initiative christened HYBE 2.0 and the appointment of a new CEO, Jason Jaesang Lee, who would be succeeding the former CEO, Jiwon Park.
Launching Label Services in the U.S.
HYBE, which generated revenue of $1.66 billion last year, is pushing into the U.S. label services business through its HYBE AMERICA division, led by CEO Scooter Braun. The company will create a new division to provide labels and artists with end-to-end solutions in distribution, marketing, and promotion.
Strategic Investments and Expansion
HYBE also announced plans for strategic investments in generative AI, audio/voice technology, gaming, integrated online/offline experiences, and OSB. These will also apply to the distribution and services sector, bringing more competitive advantages for HYBE, although that was not explicitly identified for this area.
U.S. Market Performance
The company's U.S. subsidiaries, Big Machine Label Group and QC Media Holdings, boast solid catalogs that will contribute approximately 50% of HYBE's total streaming revenue in 2023. It lays the foundation to see such growth continue through the expansion and development of artists in the U.S.
Investing In BTS Songs
If you're a huge fan of BTS and other KPOP hits or just want to get started with music royalty investing, now you can do so on Royalty Exchange. On Royalty Exchange you can sign up as an investor and search through thousands of music catalog listings that include producer and songwriter royalties to some of the biggest songs of the past few decades.
Take this BTS asset listing for instance. The buyer paid $65.5k back in October, 2023 to acquire the lifetime rights of future earnings from the songwriter's cut of royalties from huge songs such as Jungkook's "My Time". While they've held the catalog, they've already collected $7.9k in earnings. That's a total yield of 12% already in just 9 months! The amazing thing about investing in music catalogs is that their performance is independent of financial markets as people are always consuming music. One great thing about this catalog in particular is that it's still growing as Jungkook and BTS's popularity continues to skyrocket. This catalog also earns money not just from streaming, but also from live performances. So every time Jungkook plays a concert or festival the investor makes money when he plays this song.
We’ve prepared this guide on Royalty Investing Made Easy to help you out if you want to get started investing in music royalty catalogs.
At Royalty Exchange, you can choose from thousands of the most popular songs to invest in. We offer hundreds of catalogs that are up for auction today, so sign up as an investor to get started.
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