We reported earlier on how much it costs to train idols. It costs millions of dollars to bring out and keep up idols, so why do they do it?
After idols debut, if they are successful, then they make exponential profit. They see profit not only from CDs but also CFs and by expanding into other Asian markets such as Japan, China, Taiwan, and Thailand. By doing this, groups can make 1,000,000,000,000 KRW (900 mil USD) per year.
Last year, Kara and Girls’ Generation made 30,000,000,000 KRW (27 mil USD) in Japan in about 3 months. TVXQ made 130,000,000,000 KRW (117 mil USD) in Japan in one year just in CD sales. With intense promotions not only in Japan but also in other Asian countries, an idol group can make 300,000,000,000 KRW – 400,000,000,000 KRW per year (270 mil USD to 360 mil USD). If profit from other income sources such as CFs are counted, an idol group can easily make 1,000,000,000,000 KRW (900 mil USD) per year.
However, after the money is split with the celebrities, the rest of the money is spent on creating new idols. Some Cassiopeians have expressed annoyance that Girls’ Generation seemed to be getting their promotion money from TVXQ’s profit, but the older generation has pointed out that TVXQ worked on HOT and Shinhwa’s profit, and that Girls’ Generation profit will be again used to promote the next group in an endless cycle.
What do you think of the way the entertainment industry runs?