JYP ENTERTAINMENT: HOW JYP TRIES CHANGING THE K-POP INDUSTRY

CASE

Abstract

In 1997, Park Jin-young founded JYP Entertainment, a South Korean entertainment

company. It is one of the "Big Three" entertainment companies in South Korea, together
with SM and YG Entertainment. They are renowned for its varied approach to
entertainment. The business, which represents some of the most well-known and
successful artists in the genre, has significantly influenced the growth of the K-pop
market. In its efforts to promote its artists and interact with fans online, JYP has been
highly inventive and active in its use of digital media and is present on all of the major
social media networks, including Facebook, Instagram, Twitter, and YouTube. Through the
sharing of updates, teasers, music videos, and behind-the-scenes footage, these platforms
help fans stay involved and connected to their favourite musicians. Additionally, the
business produces interesting and varied content for every platform. (Helen Bosch,2022)

Introduction

Their digital marketing strategy

As someone who’s been interested in the company, I have an understanding of how JYP
Entertainment works. Like other well-known K-pop labels, JYP Entertainment uses a range of
digital marketing techniques to interact with fans and promote its artists. While I’m aware
there may be some similarities between JYP Entertainment's digital marketing strategy and
that of other agencies, there are also several areas in which JYP Entertainment excels. For
example, the company frequently produces interactive material to engage fans and create a
feeling of community around their artists. These include interactive social media
competitions, fan-voted song covers or unique performances, and virtual fan gatherings
where fans can communicate with their favourite musicians face-to-face. In order to interact
with followers, JYP also creatively uses social media sites. They might offer teaser images
and videos, advertise new releases, and engage with followers in real time by doing live Q&A
sessions or interactive challenges on social media sites like Twitter, Instagram, and TikTok
(Amely, 2020). Park Jin-young had an idea to draw in a fresh market. In order to determine
who would be a part of the group and who wouldn't, he used a survival show to introduce a
new girl group. He took this action to increase fan engagement as he thought this would
attract more attention, so he brought girls from all over the world to do it differently. JYP
made sure to use social media platforms like YouTube, Instagram, and TikTok to promote
their need for exceptional artists. Encouraging people to audition by stating things like "Be
JYP's next K-pop star." When videos of the survival show are posted on various sites, people
will go from being watchers to fans since they will be able to witness not just their talent but
also their character.

These are some graphs that I have found that calculate the value of JYP Entertainment by
examining the firm's fundamentals such as return on assets of 0.13 and return on equity of
35.19, as well as evaluating its technical indications and likelihood of bankruptcy. In general,
most investors recommend buying undervalued assets and selling expensive ones because
asset prices and ongoing real values will eventually align. These are calculated in Korean
Won.
Why was it a digital marketing failure?
I believe this digital marketing failure can be attributed to the company's decision to engage
individuals from various countries through platforms like Instagram and TikTok, resulting in
significant dissatisfaction among fans. The introduction of non-Korean individuals into the K-
pop industry has raised concerns that it would compromise the essence of K-pop (Koreaboo,
2023). Another reason is that fans know that using these platforms would target people all
over the world which to them it’s not what K-pop should be. K-pop is usually associated with
Korean culture and identity. Some fans believe that recruiting members from all over the
world dilutes K-pop's authenticity and character as a cultural phenomenon. Many people
believe that the presence of non-Korean members alters the essential nature of what K-pop
means to them which is something I also believe. Fans also see the usage of social media
sites such as Instagram and TikTok for recruiting as a break from traditional techniques of
talent scouting in the K-pop industry. Being part of that fanbase and knowing this, they may
interpret this shift as a sign of putting market expansion and economic goals ahead of the
authenticity and integrity of K-pop as an art form. The growing number of non-Korean
members in the K-pop business, facilitated by global platforms such as Instagram and
TikTok, might be seen by fans as a manifestation of the wider trend of globalisation in this
industry. Some fans may resist this globalization, believing that it alters the unique charm
and appeal of K-pop, which they see as rooted in Korean culture and identity.

In terms of the recruitment process, limited resources, such as budget, manpower, or

technological capabilities, hinder the execution of their digital marketing strategy. Without
adequate resources, I know it would be challenging to create compelling content, implement
innovative tactics, or sustain long-term engagement (Anon, ND). Negative publicity,
controversies, or reputational issues undermine the effectiveness of digital marketing efforts
by eroding trust and credibility with the audience. Addressing and mitigating negative
perceptions is essential to maintaining a positive brand image and fostering engagement.
Overall, identifying the specific factors contributing to the failure of a digital marketing
strategy requires a comprehensive analysis of the context, objectives, execution, and
outcomes of the strategy. By addressing underlying issues and implementing corrective
measures, organizations can learn from failures and improve future digital marketing efforts.

How could it be solved?

A way to solve this issue is by creating a group that is Korean instead of people from other
countries so that the group is most likely to succeed. This is due to it meets the needs of fans
like me more and most likely to engage with the group’s content. Before making decisions
about group makeup, JYP Entertainment must perform extensive market research to
determine fan preferences and trends. Understanding their target audience's wants and
preferences allows them to make more informed decisions about group formation and
marketing methods that maximise the group's chances of success. Ultimately, the success of
a K-pop group is determined by a variety of criteria, including skill, marketability, marketing
plan, and fan interaction. While group composition is a key issue, JYP Entertainment must
combine fan preferences with broader business trends, as well as diversity and
representation concerns. By carefully examining these criteria, JYP Entertainment can create
groups that resonate with fans all over the world while also contributing positively to the
vibrant and diverse K-pop scene.
What should they do differently next time?
The company uses a variety of tactics to boost its digital marketing efforts. One option could
be to use data analytics to gather insights about fan preferences, behaviours, and
demographics in order to inform more focused marketing campaigns. Understanding which
content is most popular with fans might help influence future content creation and
promotion efforts. They can also increase worldwide participation by acknowledging and
catering to their global fanbase's cultural and linguistic variety (Eggertsen C, 2021). This
implies that translating content, conducting region-specific events, and engaging with local
influencers can all help connect with people in diverse areas. This would result in more
personalised material that speaks directly to fans' interests, preferences, and behaviours.
JYP Entertainment can enhance engagement and strengthen fan ties by personalising
material to different parts of their community. Data analytics provide useful information
about fan demographics, interests, and consumption trends. By studying this data, JYP
Entertainment will be able to better determine what material resonates with their target
audience and design future content and marketing initiatives appropriately to ensure
relevancy and efficacy. What could have been done differently to make this a digital
marketing success is to do what they always do which is locate talented individuals on social
media and cast them to train. This is extremely efficient since it not only makes it easier to
locate people who are suitable for the role, but it also allows you to form groups, which has
previously proven to be more effective.

Body case content

Park Jin-young, or J.Y. Park, created JYP Entertainment, one of South Korea's biggest
entertainment companies, in 1997. Prior to establishing JYP Entertainment, Park Jin-young
was a prominent performer, composer, and record producer in the Korean music industry
(Trinetra, P, 2023). JYP Entertainment spent its early years generating music and managing
performers. One of its earlier hits was the 1999 debut of the boy band "g.o.d," which swiftly
climbed to prominence and became one of the best-selling K-pop groups of the early 2000s.
Throughout the 2000s and 2010s, JYP Entertainment expanded its roster of artists and
diversified its activities, including the successful solo careers of Rain, Wonder Girls, 2PM,
and 2AM. The organisation also dabbled in television production, talent management, and
international collaborations.

JYP Entertainment's debut as a prominent participant in the Korean entertainment industry

occurred with the global success of its girl group, Wonder Girls, particularly with their hit
single "Nobody" in 2008. This victory cemented JYP Entertainment's place as one of South
Korea's "Big Three" entertainment firms, alongside SM Entertainment and YG
Entertainment. Since then, JYP Entertainment has created numerous successful artists and
groups, increased its international footprint, and diversified its business endeavours. Today,
it is still a K-pop powerhouse, noted for its inventive music, skilled musicians, and large
global fan base.

They use digital marketing in a variety of methods to promote the firm, including
collaboration with digital influencers, brands, and other entertainment organisations to
increase their reach and visibility. These collaborations contribute to JYP Entertainment's
artists reach new audiences and generate excitement for their releases and events. They've
also set up online stores and partnered with e-commerce companies to sell items, records,
and concert tickets directly to fans. This direct-to-consumer strategy not only increases
money but also improves the relationship between fans and the brand.

They use these platforms to provide updates, behind-the-scenes content, teasers, and music
videos, keeping us connected and involved with our favourite musicians. The organisation
also generates unique and compelling content for each channel. This includes teaser
photographs, video snippets, dancing rehearsals, vlogs, and special events to keep fans
interested and engaged in the artists' endeavours (Tamar H, 2018). JYP Entertainment
frequently engages us followers on social media by responding to comments, holding live
streams, and organising fan events. This promotes a sense of community and enhances the
relationship between artists and their fans. JYP Entertainment intentionally publishes music
on digital streaming services such as Spotify, Apple Music, and Melon to reach a larger
audience locally and globally. They also use playlist positions and collaborations with well-
known influencers to increase visibility and reach.

Recognising the importance of mobile devices in digital marketing, JYP Entertainment makes
certain that its content and platforms are optimised for mobile viewing and interaction. This
enables fans to seamlessly access their preferred content across several platforms,
improving the overall user experience. JYP Entertainment has grown its brand, engaged with
fans around the world, and maintained its status as one of the industry's leading
entertainment organisations by skilfully maximising these digital marketing methods.

Furthermore, JYP Entertainment's launch of online shops and collaborations with e-

commerce companies demonstrate their direct-to-consumer strategy. By selling
merchandise, CDs, and concert tickets directly to fans, they not only increase money but also
enhance the link between fans and the brand (Huy L, 2018). This direct contact gives fans a
sense of exclusivity and dedication, which improves their whole experience and relationship
with JYP Entertainment and its performers. Overall, JYP Entertainment's use of digital
marketing methods demonstrates their commitment to remain ahead in the highly
competitive entertainment sector. They use collaborations, online platforms, and direct-to-
consumer initiatives to effectively communicate with fans, expand their audience reach, and
promote business growth in the digital age.

4-5 numbered questions that can be answered from the case content.

Question 1: How did they start out?

Question 2: What is their way of using digital marketing?
Question 3: How does the company connect with viewers?
Question 4: How did they manage to grow the organisation?

Conclusion

So what was JYP’s digital marketing strategy that failed? JYP solicited individuals globally
using sites like Instagram and TikTok to establish a group, which generated significant
dissatisfaction among fans due to its deviation from the essence of K-pop culture and its
potential to erode its cultural integrity. Companies such as JYP Entertainment must prioritise
the sentiments and preferences of the fan base while executing digital marketing
techniques. While globalization and inclusivity can be positive aspects of the industry, they
should be approached with sensitivity to the cultural roots and values that fans associate
with K-pop. Effective communication and engagement with fans can help mitigate any
potential backlash and ensure that digital marketing efforts align with the expectations of
the fan community.
References

Koreaboo. (2024). JYP’s VCHA faces Critism. Available at:

https://www.koreaboo.com/news/jyp-entertainment-vcha-mtv-comments-intense-criticism/

(Accessed: 28 April 2024).

www.youtube.com. (n.d.) Jype’s new girl group ‘VCHA’ causes fans to be angry. Available at:

https://www.youtube.com/watch?v=bLNRkQUX9yQ (Accessed: 28 April 2024).

Jones, C. (2023). ‘VCHA’ faces backlash. Available at:

https://www.kpopstarz.com/articles/315010/20230922/jyps-newest-group-vcha-faces-

backlash%E2%80%94-heres-what-knetz.htm Accessed: 28 April 2024).

JYP Entertainment expansion to international markets: USA, China, and Japan, Global Local

Interactions. Available at: file:///C:/Users/user/Downloads/7.+Salsabil+and+Megahnanda+-

+JYP+Entertainment+ Expansion+to+International+Markets.pdf (Accessed: 28 April 2024).

www.instagram.com. (n.d.). Instagram. [online] Available at:

https://www.instagram.com/p/CEA12OWlO_w/ (Accessed 28 April 2024).

www.tiktok.com. (n.d.) VCHA’s Audition Advertisement

https://www.tiktok.com/@jypaudition/video/7250385829972036865 (Accessed: 28 April

2024).

Murray, D. (n.d.) JYP’s Net Worth. Available at: https://www.slice.ca/the-richest-k-pop-stars-

according-to-net-worth/#:~:text=JYP%20(Estimated%20net%20worth%3A

%20%24250%20million) (Accessed: 28 April 2024).

Macroaxis. (2024). JYP Entertainment net worth 2024 - (KR:035900). Available at:

https://www.macroaxis.com/valuation/035900.KQ/JYP-Entertainment (Accessed: 28 April

2024).

Le, H. (2018) JYP Entertainment net worth 2024 - (KR:035900). Available at:

https://www.theseus.fi/bitstream/handle/10024/157971/thesis_quangle.pdf?

isAllowed=y&sequence=1(Accessed: 28 April 2024).

amelykoenig (2020) JYP Advertising themselves. Available at:

https://amelyswebsite.home.blog/2020/08/26/media-niche-kpop-in-jyp/(Accessed: 28 April

2024).

Herman, T. (n.d.)JYP’S Approach to K-pop in 2018. Available at:

https://www.forbes.com/sites/tamarherman/2018/12/31/jyp-entertainments-approach-to-

k-pop-in-2018-brought-company-to-new-heights/?sh=3d7086885b09 (Accessed: 28 April

2024)

Eggertsen, C. (2021) JYP’s Engagement with fans. Available

at:https://www.billboard.com/pro/jyp-entertainment-fan-engagement-twice/ (Accessed: 28

April 2024)

Statista. (n.d.)JYP Revenue 2023. Available at:

https://www.statista.com/statistics/917463/south-korea-jyp-entertainment-sales-value/

#:~:text=In%202023%2C%20the%20global%20sales,DAY6%2C%20ITZY%2C%20and

%20NMIXX(Accessed: 28 April 2024)

www.wsj.com. (n.d.).JYP Annual Balance Sheet. Available at: https://www.wsj.com/market-

data/quotes/KR/XKRX/035900/financials/annual/balance-sheet (Accessed: 28 April 2024)

Major, M. (n.d.). JYP Entertainment Announces Strategic Partnership With Live Nation to

Expand Touring Business for K-POP Artists Worldwide. [online] BroadwayWorld.com.

Available at: https://www.broadwayworld.com/bwwmusic/article/JYP-Entertainment-

Announces-Strategic-Partnership-With-Live-Nation-to-Expand-Touring-Business-for-K-POP-

Artists-Worldwide-20231113 (Accessed: 28 April 2024)

Music Business Worldwide. (2023). K-pop powerhouse JYP expands strategic alliance with

Republic Records. [online] Available at: https://www.musicbusinessworldwide.com/k-pop-

powerhouse-jyp-expands-strategic-alliance-with-republic-records/ (Accessed: 28 April 2024)

koreatimes. (2023). Major K-pop agencies investigated for unfairness of excessive tie-in

merch. [online] Available at:

https://www.koreatimes.co.kr/www/tech/2024/04/129_356379.html(Accessed: 28 April

2024).

Local talent, global goals: K-pop agencies look to ‘glocalize’ the genre. (n.d.). Local talent,

global goals: K-pop agencies look to ‘glocalize’ the genre. [online] Available at:

2024].https://english.hani.co.kr/arti/english_edition/e_entertainment/1100886 (Accessed:

28 April 2024).

Press, A. (2021). JYP sets up subsidiary for global content distribution and new business

development. [online] Aju Press. Available at:

https://www.ajupress.com/view/20210803161341702 (Accessed: 28 April 2024).

Jun-hee, P. (2022). Pop-up stores become key K-pop marketing strategy. [online] Asia News

Network. Available at: https://asianews.network/pop-up-stores-become-key-k-pop-

marketing-strategy/(Accessed: 28 April 2024).

Network, T.K.H. via A.N. (2023). K-pop Industry Spreads Its Wings with ‘Glocalization’.

[online] japannews.yomiuri.co.jp. Available at: https://japannews.yomiuri.co.jp/world/asia-

pacific/20230209-90228/(Accessed: 28 April 2024).

reporter, J.Y.G.T. cultural news, Movies, C., series, T.V., fictions, C. and Yuqiao, other cultural

topics J. (n.d.). Further diversity cooperation between Chinese and S.Korean music industries

expected following TME, JYP partnership: experts - Global Times. [online]

www.globaltimes.cn. Available at: https://www.globaltimes.cn/page/202103/1219479.shtml

(Accessed: 28 April 2024).

allkpop. (n.d.). JYP Entertainment Shares Reach an All-Time High of 90,000 KRW Per Share.

[online] Available at: https://www.allkpop.com/article/2023/04/jyp-entertainment-shares-

reach-an-all-time-high-of-90000-krw-per-share(Accessed: 28 April 2024).

koreajoongangdaily.joins.com. (n.d.). K-pop acts shift their focus from local to global:

Capitalizing on the hunger for Korean culture abroad, groups focus on foreign fans. [online]

Available at: https://koreajoongangdaily.joins.com/2018/11/22/etc/Kpop-acts-shift-their-

focus-from-local-to-global-Capitalizing-on-the-hunger-for-Korean-culture-abroad-groups-

focus-on-foreign-fans/3056022.html(Accessed: 28 April 2024).

allkpop. (n.d.). Fair Trade Commission Investigates Major Entertainment Companies Over

Random Photo Card Sales Scheme to Boost Album Revenue. [online] Available at:

https://www.allkpop.com/article/2023/08/fair-trade-commission-investigates-major-

entertainment-companies-over-random-photo-card-sales-scheme-to-boost-album-

revenue[Accessed 28 Apr. 2024]

koreatimes. (2011). Korean entertainment firms fail to go public. [online] Available at:

https://www.koreatimes.co.kr/www/tech/2024/04/129_79209.html (Accessed: 28 April

2024).

loannguyen96 (2023). JYP expands company-wide strategic collaboration with Republic

Records. [online] KBIZoom. Available at: https://www.kbizoom.com/jyp-expands-company-

wide-strategic-collaboration-with-republic-records/ (Accessed: 28 April 2024).

Koreaboo. (2024). Is JYP Entertainment In A Crisis? Fans Discuss The Company’s

Performance. [online] Available at: https://www.koreaboo.com/stories/jyp-entertainment-

in-crisis-fans-discuss-company-performance/ (Accessed: 28 April 2024).