The US$10 billion K-pop industry hit a rough patch in 2024 as physical album sales — still one of the main sources of revenue — fell by 19%, the first annual decline in nine years. Meanwhile, shares in the big four K-pop entertainment companies fell by an average of 19%.
Why it’s happening: There are a few reasons, including changing practices about buying physical albums, a lack of major live tours, and the fact that the biggest acts like BTS and Blackpink didn’t put out music. Another major reason? Bad publicity leading to fan fatigue.
- The industry was hit by scandals, like a national inquiry into its bullying, and a dispute between the label Ador and one of the most promising newer acts, NewJeans.
Why it matters: Ultimately, K-pop has limited room to grow in South Korea, with its aging, declining population. To snap out of the slump, major labels are turning their attention to global expansion, with plans to get you, the average non-Korean music fan, listening.
Big picture: One way to do this is by cutting back the Korean. Per a Bloomberg News analysis, nearly half of K-pop songs released in the first half of 2024 had majority English lyrics. Another is by creating new groups tailored to the preferences of specific regions.—QH