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| Big Hit Entertainment CEO Bang Si-hyuk, center, poses with pop star Rain, left, and rapper Ziko, during the press conference for Mnet's new survival reality show "I-Land" at CJ ENM's headquarters in Mapo-gu, western Seoul, on June 25. / Courtesy of CJ ENM |
By Kim Jae-heun
Big Hit Entertainment is the next big deal in the initial public offering (IPO) scene here, expected to make its debut in either September or October.
It is currently undergoing screening in preparation for going public on the KOSPI and it is always better to stay out of any trouble during this period.
However, its collaboration project with CJ ENM's cable music channel Mnet ― debuting the next global K-pop band ― has just begun to air a week before the Korea Communications Standards Commission (KCSC) took action against the media giant over a previous ballot-rigging scandal.
Of course, the KCSC's attention to Mnet's statement of opinion over its illegality will not affect the music cable channel's new survival reality show "I-Land" or the entertainment agency's IPO plan.
Even if the broadcasting censorship body decides to take severe disciplinary action against Mnet relevant to the "Produce" series, it will be considered as an individual case.
Nonetheless, "I-Land" and "Produce" share almost identical formats of survival reality audition shows inviting K-pop star wannabes, and this time both audience and the KCSC will be closely watching.
This time, Mnet said it will outsource the voting system to a specialized outside institution. But if anything goes wrong and "I-Land" receives a penalty or its K-pop band fails to debut, Big Hit Entertainment's valuation in the IPO market will depreciate.
"Nothing will affect Big Hit Entertainment from listing in any worst-case scenario. However, if something happens to its collaboration project with CJ ENM, it can affect the talent agency's sales that can also lead to a drop of its listing price," a source from the local financial industry said. "All the projects Big Hit Entertainment is proceeding with are included in the business plan that is used to calculate its future revenue and the Korea Stock Exchange will be reviewing it."
Big Hit Entertainment founder and CEO Bang Si-hyuk said he is excited for the project as he will be starring in the show as a producer. It is his first appearance on an audition show in 10 years after he starred as a mentor in MBC's "Star Audition: The Great Birth" in 2011.
"It has been 20 years since I started producing music, but it is my first time participating in a new survival reality show like I-Land. I will be closely watching how participants in this show grow up to make it in the band. I want to help them to become independent people who can make decisions by themselves and improve."
Currently, 70 percent of Big Hit Entertainment's revenue is solely coming from BTS. However, the group members will have to begin their mandatory military service soon and the entertainment company has to find its next K-pop hit.
To that end, the collaboration project with Mnet is a risky business that Big Hit Entertainment must take.
