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Earnings of Kpop Idols stars in 2023 (K Pop Industries Business model?)

Earnings of Kpop Idols stars in 2023 (K Pop Industries Business model?)

The Kpop industry is a colossal industry worth $5 billion. However, it is unclear where all that money goes. Many people wonder how much Kpop idols earn from their music and how much of it goes to the Kpop entertainment companies versus the individual members. Aspiring artists often audition for Kpop entertainment companies with the expectation of becoming rich and famous, but the reality is that many Kpop artists end up with unfavorable record deals. This article aims to explore the murky world of the Kpop industry and shed light on why some of your favorite Kpop artists are not receiving the compensation they deserve. Additionally, we will examine how money flows within a typical Kpop label. The amount of money Kpop idols make may surprise you.

How much the Kpop Industry Changed Over the Years

Kpop emerged in the early 1990s, and the industry has undergone significant changes over the past three decades. In the past, Kpop was only available on Korean social media platforms such as Cyworld or TV. However, Kpop has now expanded to every social media platform, breaking monthly records. Additionally, many Kpop artists now offer fans a glimpse into their daily lives through reality shows, live streams, and social media platforms like YouTube and TikTok. Furthermore, Kpop groups are now staying together for much longer than before, with the average run for a typical Kpop group being eight years. In the past, many Kpop groups only lasted a few years, which meant that their opportunity to earn significant money was limited.

In today’s digital age, it’s common to come across numerous former Kpop artists expressing their grievances about their record contracts. With the Kpop industry booming, more and more Kpop artists are seeking ways to exit their deals. The compensation that Kpop idols receive is a challenging topic to address because Kpop entertainment companies tend to keep such information confidential

Change in the kpop industry in 2023

The global music industry underwent a massive transformation in the early 2000s due to the emergence of Napster and other peer-to-peer sharing platforms that allowed users worldwide to access music for free. As a result, fewer and fewer fans were purchasing albums. Similarly, Kpop fans now obtain their music from platforms such as YouTube, iTunes, and Spotify. This shift also affected Kpop entertainment companies. The “Big 3” companies (YG, JYP, and SM) were able to generate a significant portion of their revenue through album sales. However, music labels worldwide had to devise new ways to generate revenue due to the rise of online music. They needed to develop a new business model.

K pop industries in 2023 New business model

The music industry’s business model shifted from generating revenue through album sales to touring, personal signing events, and merchandising. Fortunately for Kpop entertainment companies, the sales of Kpop albums remained profitable. This was because Kpop entertainment companies began to view albums more as merchandise. A typical Kpop album now features artistic cover designs, a photocard, and exclusive pictures. Most Kpop fans do not even listen to the CD since they lack a device to play it. In some cases, fans do not even open the albums and instead keep them as collector’s items.

Many Kpop fans believe that they are supporting their favorite Kpop group, but they may not realize that almost all the money they spend goes directly to the Kpop entertainment companies. These companies often hold fan events where fans can submit receipts of their album purchases. The more receipts a fan submits, the greater their chances of being selected to meet their favorite Kpop star. This is a lucrative revenue source for Kpop entertainment companies because they know that fans will continue to purchase albums in the hopes of meeting their idols. This strategy is unique to the Kpop industry and works due to the industry’s incredibly loyal fanbase. Other music labels worldwide cannot replicate this model.

K Pop star actual earning?


Kpop artists are initially signed on as “trainees,” and these contracts are often referred to as “slave contracts.” The Korean government has intervened to prevent this type of practice. A “slave contract” means that the Kpop label is responsible for covering all of the artist’s expenses, including housing, training fees, food, and other expenses. These costs can add up quickly, and the average expenses for a typical Kpop trainee are around $50,000 per year.

When you consider the expenses associated with training fees, housing, and other costs that Kpop entertainment companies control, they can charge whatever they want. For example, if they want to charge $1,000 or more per month for shared housing, they can add it to the bill. Similarly, dance training can cost $100 per hour, and the company can add this expense to the trainee’s bill. Unfortunately, most Kpop trainees do not know how much their yearly bill is due to a lack of transparency from the Kpop entertainment companies. This lack of transparency was a significant issue for some TVXQ members whose contract was estimated to be over 10 years long. Additionally, there was very little transparency regarding how much they owed.