Today SM Entertainment released its report for the First Quarter of Year 2011. The results are shown to you below, with material terms translated. Pay attention to the bold and especially the red.
SM’s reports show that in the First Quarter of 2011, its net profit was about 910,000,000 KRW, or approximately 900,000 USD. Its net profit from the First Quarter of 2010, a year prior, was about 8,300,000,000, or approximately 8,300,000 USD. In other words, in the beginning of last year SM’s net profit was about 8 million USD, and in the beginning of this year it is about 1 million USD. It decreased 8-fold, or declined by about 90%.
The same report also shows that for the First Quarter of Year 2011, the money that SM raised in Sales from its Music Business (to be distinguished from “net profit” which takes out the expenditure that went into those sales) was about 11,500,000,000 KRW, or approximately 11,500,000 USD. A year before, it was about 17,600,000,000 KRW, or approximately 17,600,000 USD. In other words, there is a difference of about 35% between the two years. The sales raised from Japan for the First Quarter of Year 2011 was about 3,900,000,000 KRW, or approximately 3,900,000 USD. A year prior, it was about 13,000,000,000 KRW, or approximately 13,000,000 USD. This decline is about 70%.
To put this in context, JYJ3 calculated the net profits from Quarterly Reports of SM from past quarters and made a simple graph. (Please note that the accounting terms changed slightly in the 2011 report from prior reports and that SM is often not precise in its reporting from year to year. Nonetheless, these variations do not result in a material change. We used the most modern figures available to make this graph.)
What does this mean? You will notice that the net profit raised in past three quarters (First Quarter of 2011, Fourth Quarter of 2010, and Third Quarter of 2010) are actually are nowhere near the 9 billion KRW (approximately 9 million USD) from the First Quarter of 2010. They are clustered pretty close to where SM is now– about 1 billion KRW (approximately 1 million KRW). JYJ readers probably remember that about a year ago SM boasted that despite the lawsuit it became more profitable than ever– and it was telling the truth. In the First Quarter of 2010 and the Second Quarter of 2010, it did have unprecedented profits of about 8 billion KRW and 9 billion KRW each (approximately 8 and 9 million USD). But this was from the “Tohoshinki Explosion/Boom” that took place around 2008-2009. The enormous profits made then had been balanced and applied to the quarterly reports of early 2010. Notice that prior to that, SM’s profits hover around where it is now currently in the First Quarter of 2011.
The above graph states our conclusion pretty clearly. Without JYJ, SM’s true worth and profitability is probably exactly around where it is now– and this fall is just a part of the natural return of SM to where it is supposed to be. And it is a sweet fall.
Nonetheless, these “outliars” of extraordinarily high profits may happen again for SM very soon because it is likely to soon receive the profits from the sale of JYJ products by Avex – the “Memories” DVD being one such product. Therefore, in the near future, SM’s profits may become higher due to JYJ. Be prepared for it, but also be mindful that SM’s fall/return to its truthful state is unavoidable.
Source: SM Quarterly Reports
Credit: JYJ3
i’m sorry mommy, no longer your good daughter ’cause i’m laughing at other people’s fail and feel quite good >___<
hahahaa freaking agree…
Count me in girls. My tummy is hurting me because I can’t stop my laughs. ¡HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA1
SME, ¡GREEDY TRICKERS AND LIARS, HUGE SLAP IN YOUR FACE!
lol just by looking at the charts i can’t help but feel bad for sme O.O they spend so much yet earn back the money not that much SHRUGS oh well~ JYJ doesn’t need to spend a penny on advertisement money yet SME spend huge but the outcome of it doesn’t really match up to the adverts
I doubt how legit are these figures. I mean I’m sure that company still get some good portion of profit out of the work they put upon their employees, so maybe it’s up to how they distribute that profit (ie. biiiiiiiiiiiiiiiiiiiiiiiig bonus to the management team etc.) or how they manage the figure for TAX reason.
“But this was from the “Tohoshinki Explosion/Boom” that took place around 2008-2009.”
Lol Correct me if I’m wrong but didn’t they argue in the court hearing that overseas profits during this time was mostly thanks to CSJH, Trax, Go Ara, BoA or something?
A+++++++++ I remember sm saying that too!!
@Ashley – LOL
…of coursssssse it was The Grace & Trax, et all…..the stores were lined with CD’s…sold ALL in one day! p’shah! hahaha.
In a way…I kinda think JYJ’s lawsuit put the *SCARE* into SM’s accounting team – they’d been cooking the books to snatch & grab all the cash they could from TVXQ – then realized the courts were gonna eat them for lunch if they didn’t post at least ONE current & correct status on their accounts. Thus the showing of MAJOR loss in one swoop.
I’m no international finance kind of person, but I think (?) that a lot of companies use a ‘bloated’ stock earnings portfolio to make deals with other companies – rather, they look good on paper, so people want to do business with them. This set of numbers does NOT make them look tasty. (woot!..haha)
I was thinking the exact same thing~
I have a new song in mind now… Before, I sang, “Keep Your Stocks Down~” Now, Imma sing, “Keep Your Sales Down~” Heheheh
ROFL !!!! cue the music ♪♫♪♫♪♫♪♫ …imposing looking dancers squat like toads ~ ~ ~ music swells ~
KEEP YOUR SALES DOWN ~ (♪♫boom-diddy-boom)
Erased, disappeared, you’ve burned to death in my heart
KEEP YOUR SALES DOWN ~ (♪♫boom-diddy-boom)
Erased, disappeared, you’ve died in my heart -you no longer exist
back at ya…SM you Foo~>:)
Pwaaahhahahahah~!!!!
Way tah go~!!!
@sally_b epic!! i like it!!! i give you thumb up if there was a like button ^^
OMG lols……………..headdesk! I swallowing the eruption of laughter coz Im in my office LOls too funneh buwahahahahha
hey….I wanna sing too!
SME I swear
I’m will laugh loudly like this again
I know that you thought you’d win
And before you had another try
You’d die
No money makes you cry or ask why
Oh why
So I’ll deny my heart cause
I won’t live a lie
Why try
Your stock is empty
And you’re so bold
To say you don’t care about Won and pride
Your stock is empty
You won’t let go
But I’m laughing out this life
Why can’t you let it go
Let it go let it go let it go
SME because your stock is empty
Why can’t you let it go
Let it go let it go let it go
SME because your heart is empty
There you go
Tryna tell me how to be a man
When that’s something you just
don’t understand
It’s time to bring your
truth to light
No lie No money make you
cry or ask why
Oh why
So I’ll deny my heart cause
I won’t live a lie
Why try ….. dum bada bum (No money~~~~)
Your stock is empty, empty, empty~~~~~~~~~~~
I was singing that while I was reading it~! whahahahah
Whoaa…. good one d(^_^)
Clever JYJ’s fans! Lol^^
@9mmleftshinki LOL did u come up with that? very clever! Totally looooved it! ^___^
hahahahaha you should actually send them some lyrics……so they can sell out their “artists” with them ^_____^
@9mmleftshinki
LOOOL…….bwhahahahahhaha i totally fits the melody ….hahaha
Actually, “Keep you head down” fits SME very good.
¡It’s time to kiss the ground, you fckg liars!
@9mmleftshinki, ¡YOU ROCK, GIRL!
LOL!!!
To All of the Above…
ROFLMAO!!!! Thank you for starting my day off right!
Love you all, especially my little chickadee.
Me too – ROFL! 😛
JYJ’s creativity influences us too~! LOL
Ahhhhhhhhhhh……. It’s going to be a gooood day.
🙂
wauuu hahaha so cool, you have 2 make a vvideo with that!!!
@ Shuheilove
Should not say bad words !!! But today is exceptionally…Can say whatever you want !!! cause we are partying on the downfall of SME & soon AVEX !!!Hope bit by bit eventually they will crashed totally !!!
@Della_Tanri, my girl, you’re absolutely right. So sorry about my bad words. But I still rejoice over SME’s foolish liars numbers. ¡HAHAHAHAHAHA!
LOL…
that so freaking hilarius XD…!!!
hahaha im dying im gona sing it too “keep ur sales down!♫♫♫
go good… where r the chants X3
Yeah right~~~~~~~~~~~~~~~~ lols
loling @ 9mmleftshinki ‘s SME Empty Lyrics… u r daebak!!
HAHAHAHAHHAHAHAHAHHHA OMG OMG OMG OMG THE EMPTY LYRIC IS GONNA MAKE MY WHOLE DAY<3
♫ your stock is EMPTY, empty, emp, te e e ♫
@9mmleftshinki
Good one !!!! How about another round ?perhaps another song?
loooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooool XD
Am I an evil for laughing over this? XDDD
No, because you are not alone. 😉
Me 2, hahaha~~
Is lady karma back in action? 😀
@Wendyy~~that’s exactly what i was thinking!! *payback is a b*tch* ^_~
You bet your sweet bippy she is. Actually, she never went anywhere. She was/is still on the case. She ain’t going NO WHERE!
“You bet your sweet bippy”
Ha, now there’s a phrase I’ve not heard in a very long time! All together now, let’s have our own “Laugh-In” at the expense of SME. Thank you Lady Karma!
This made my morning and put a grin on my face that will take me through all of work today!
Yeah! Let’s hear for Laugh-in.
It’s a good thing I’m honest about my age, or I would have to lie and say I look up a lot of nostalgia programming on the web. 🙂
Hear, Hear!
Nostalgia programming…yeah, that’s right, uh huh…at least that’s what I keep telling myself. My rationale for spazzing after these JYJ boys! 😉 Lol, this really “dated” me!!
what’s wrong SM? Have to pay for your own expenses now because the biggest money maker was gone? Is this why you can’t keep your claws off JYJ and just have to show your ugly face everywhere they go? Tsk tsk, petty much, aren’t you? I’m laughing at someone’s business failure and don’t even feel bad one bit.
I so love this. LOL.
I shall not laugh. I shall…not…lau….wahahhahaah…Take that!..
no, i’m not really this kind of person, the one who laughs at others’ unfortunate news, but I just had to let it out…
sorry SME
One should not be happy for the misery of others … but there is always the exception that proves the rule.
NOW ALL LAUGHING FOR THIS!!!! WAHAHAHAHAH!
*happy dance*
And thanks to the administrator for putting the information in a easy to understand form like this.
you can see that their sales in Korea have increased in Q1 of 2011 but it is fairly maxed out.. they have all their artist sharing one small market.. their biggest difference is their entry in Japan (the Tohoshinki era). and they are trying to regain loss glory with SNSD.. But it’ll take a lot of talent to trample ABK48 out of their place.. Memories of 2010 DVD will be their last chance at making profit since any JYJ products Avex will try to put out is already marked unsupported by fans.. they can say that incoming increase is due to SNSD activities and DBSK2 comeback.. but after they extract every single profit they could out of JYJ and unable to get anymore.. we’ll be able to see SM’s true form.. Thinking about it.. the figures only shows sales.. how about their expenses? flying everyone via luxury planes for SMtown.. do they earn fairly more than what they have payed for? 30+ artists compared to 3 (JYJ).. math is not difficult at that range of comparison..
@jenknight18
not to mention they took SMalltown to France for a concert for 2 days!!
THANK U JYJ3, this was the best news i have heard for awhile!! U made it sooo easy to understand ^_~
so you’ll think if they dont get enough profits from sales.. how do they able to pay all those expenses? and how much do actually gets to their artist’s paycheck… imagine a 7000 capacity concert by 35 artists.. compared to a 12000 capacity concert by 3 people.. and we’re talking about one venue only.. so yeah.. it doesn’t need rocket science to figure out that someone out there in the company is underpaid..
Ahh, but this may be, and I say may be, why the announcement that the Korean Cultural Office is paying for the gig. Hmmmmmmm. Kind of puts the remainder of the ‘SMTown World Tour’ in its proper perspective.
BIG LOL THE ATHE SMalltown !!!!!!!!!!!!!!! HAHAHHAHAHHAHAHHAHA OH…AND SNSD HAD PRIVATE PLANE TO JAPAN OR STH LIKE THAT ..RITE
…and MORE….the total number of seats for the France show is approx 13,000 seats – only.
a rough guesstimate of – 13,000 seats x $140 per ticket (guessing avg. price) = 1,820,000 million. The stage and lighting for such a concert at least -200,000 = 1,620,000. Then subtract the airfare, food & lodging for the 30+ artists…AND their managers….AND stylists/crew……I’d be surprised if the make $200,000 for the whole she-bang. They are probably going to be close to breaking even.
That’s pocket change for LSM – and BIG shareholders….no wonder they want to sell their stock.
a rough guesstimate of – 13,000 seats x $140 per ticket (guessing avg. price) = 1,820,000 million. The stage and lighting for such a concert at least -200,000 = 1,620,000. Then subtract the airfare, food & lodging for the 30+ artists…AND their managers….AND stylists/crew……I’d be surprised if the make $200,000 for the whole she-bang. They are probably going to be close to breaking even.
Poor SMallTown Idols… They won’t have a Christmas bonus~… AGAIN…
“Poor SMallTown Idols… They won’t have a Christmas bonus~”
Don’t tell me, their bonus is flying to France O.O
And also the artists pretty much pays for everything else
SNSD completely lost out to Kara. Kara actually became even more popular after their lawsuit. I think the sale numbers were affected by the earthquake too. They had to cancel one or two concerts I think.
I predict that they are going to work their idols to death. I’m really glad JYJ got out of there.
yes, i think so… and expenses will in idols paycheck too…work hard any how much money they have left…so happy my boys out of this company!!!
Isn’t there single release by 2hoshinki in Japan. What happened to it? It got no 1 in Oricon, right?
they got number one on oricon, but the sales of their product is not as good as TVXQ act one
it’s probably cause some company doing massive buying to make their artist looks good so they can appear on oricon ? LOL
they did release KYHD Japanese version.. we dont see the impact of that here yet.. we’ll know next 2 quarters if they’ll be able to sustain because next quarter figures will be SNSD+JYJ+2HSK.. the quarter after that it’ll be very minimal (almost none i hope) profit from JYJ post lawsuit merchandise..
I just remembered! Maybe this is why they’re now selling a huge THSK1 compilation thru Universal here in The Philippines… Gosh… and CassPh is advertising it like crazy… Sad… sad… sad… mislead fans…>.>
ginagatasan pa rin sila ng AVEX/SME… tsk tsk tsk
kaya nga kahit gusto ko bumili.. ni restrain ko sarili ko,, pati yung Tokyo Dome Concert DVD.. download na lng.. I’ll rather spend my money over JYJ products only.. i know where my heart belongs..
Ah…kaya pala number 1 bigla sa Astro Vision ang A-side and B-side Collection ng Tohoshinki.
Me too!!! I won’t spend on the labels of SME & AVEX at all…Let’s see you will be making money or not !!! LOL..
@Jen
Totoo~
at saka lahat nmn ng kantang andun, nasa net na… avail for FREE DL… so… useless na gumastos for tht… lalo pag nagtatrabaho ka for ur money… Hay… mga bata kasing cassie, hingi lng nmn ng hingi sa parents eh…
@Aki
that fact makes my stomach lurch… ayan ang nakikita kong dahilan kaya nalalabuan akong pupunta dito JYJ… puro OT5 rito… kaasar!
Sammie,
Think of all that as a last ditch effort before the injunction, concert, and close of their contract with JYJ. AVEX always does something like this when they need a big hit (as in drugs) 🙂
How come ? all their artists releases were chart toppers, the comeback was explosive, they always made to the headlines as having the highest sales,.. not that I’m worried …
The thing is, charting can be bought… so yeah… they could be buying their own products and the charts will say some idol is number 1 on this chart, or that chart… you get my drift…^^
sam-sam – right on. Those music awards/charts are SO bought – it’s cringe-worthy how BLATANT it is, too.
and which comeback was explosive?
LOL
you evil lols ahahahahaha
Big Bang’s. 😛
(I’m sorry, I couldn’t resist.)
ROFL … ah, you made my day
I was just abt to say… ahahahh
its the truth though lols
plus chart topping in Korea .. yes.. by the figures of sales in 2011 by demographic .it shows that they did improve sales in their own land.. reason for press releases that they top charts and have high comeback sales.. but if you see the it clearly the “BIG DIFFERENCE” is that they lost significant profit from Japan.. a 70% drop.. and Tohoshinki was their only active artists there.. Even SuJu-M with their China and Taiwan market could not bring in as much cash as Tohoshinki gets from Japan.. that is why they are heavily relying on SNSD’s success in Japan.. but it’ll be hard since: 1) Japan is in a downtime due to the aftermaths of the earthquake and 2)Kara has been there first and have established a loyal fanbase (Japanese fans are loyal believe me!) 3) They have their own girl group there ABK48 which is super popular too..
yES. kARA ARE EVEN MORE popular now after the lawsuit…and ABK48 is like Japan’s top girl group. so yeah…
I can’t find it here but I read on twitter that their promotional expenses are really high compared to 2010 too. Probably to manipulate the charts and buy a bunch of their own CDs to make it look like they were selling well.
SM spent more this last 2 years in “comebacks” than it did in the past.After 2009 not only they lost their best asset in Asia,TVXQ,(sometimes people forget that TVXQ was not only a group of really talented idols but also a group that out sold itself all over Asia not only in Korea and in Japan,they were the money machine that kept SM alive and able to come out with new trained groups) but also their reputation they now have to work twice as hard,they have to keep boasting about money even when they are losing than gaining cause if they don’t, their shares will fall in the market.
I dare say Karma is a bitch =P
Just remember that when a company starts huge self pimpin it means that they are at the edge of bankruptcy and need liquid assets,so they are kind of selling themselves to you cause it was that good they would have kept the party between themselves.
@sarahdot
“Just remember that when a company starts huge self pimpin it means that they are at the edge of bankruptcy and need liquid assets,so they are kind of selling themselves to you cause it was that good they would have kept the party between themselves.”
TRUER WORDS HAVE NEVER BEEN SPOKEN! AMEN TO THAT!
Maybe that’s why they’re doing a lot of stuff these days…from amusement parks to cruise ships – SME needs to offer people incentives to invest in the company.
Of course, promoting Hallyu Wave is part of it too, but I’m sure that’s not their main reason.
Amusement parks/cruise ships…I’m just glad I won’t see Yuchun playing the piano in the lounge of the cruise ship anytime soon…..what a relief.
highest sales=highest revenue=/= highest profit.
SM (and big companies in general) have costs which are way high. (for everything required for normal functioning, not just promotions for comebacks/debuts)
pffft……….ffffttt……..haahhaahaha………HAHAHAHAHA 🙂 😀 😀
oh…..i can’t stop laughing now…….sorry SM for laughing your poor condition right now
it’s really ironic just 3 young men can made some big entertainment company fell down like this
wow..did SM release this statement themselves…i mean, judging from how BIG their ego is…..wow… i wonder whether they really show the whole world just how much they’ve lost during the past year ???? O.O
I could be wrong….but I don’t think they have a choice about it being publicized. If they are an open-stock company…that is, registered on Korea’s stock market – they are compelled by law to post their earnings and losses. dunno for sure.
This is what I’ve been screaming for a while now. How in the hell were their stockholder reports not reflecting what the actual situation is.
I have a couple of stocks, small potatoes amount, but nonetheless, when I go to check my Disney stock and my mutual fund, I want to know how the money is being spent, and what my return on investment is going to be. I also stay in the long haul because I believe in the product, but here…..well.
My question to all this….how are they going to invest in the amusement park and cruise thingie without going into MAJOR debt financing to put their part in? Also, could anticipation of this report been the spearhead for wanting the formation of UAM?
So many questions abound.
Who knows, they may use the “but we are promoting hallyu wave” to get the Korean Govt to sponsor/chip in?!
My friend, all of this just reeks of desperation. Will they have better times, we’ll have to see. Won’t break my heart if they don’t. 🙂
@Mommie
Yup yup yup!!!
I’m wondering if investment in these enterprises isn’t part of this drop in net profit. Sales are only down by 50%, the rest is an increase in expenses. But then, I think this is part of SME’s business plan, whenever there is extra cash coming in, they go looking for places to spend it. Or maybe more accurately, looking for more ventures in which to siphon it off. Don’t forget, these “investments” are being paid for by the artists. It’s coming out of their “profits”. If SME is seeming to make money, then the artists will expect to get paid. I think actually reporting these huge profits at the beginning of 2010 was a big (strategic) mistake and part of their temper-tantrum at JYJ.
Eliza, I do agree the ‘investments’ are being paid for by the artists, cause they ain’t paying for this out of their own pockets.
My question is…what extra money are we talking about here? The minimal sales, and the few concerts they’ve had since the last full scale TVXQ concert, cannot possibly bring in enough to make a huge difference.
If there is ever a forensic accounting done on this company, I hope the folks doing it have some strong life insurance policies, cause I know of a case where someone had a heart attack and died trying to come behind an accounting mess someone else made. The guilty party absconded and left a huge mess.
This is going to be a very interesting upcoming quarter to keep track of. I wonder how many folks in this fandom ever dreamed they would be learning as much as they have been learning following this case? Law, finance, music production, psychology, the list is endless. 🙂
@butterfliesarefree
” I wonder how many folks in this fandom ever dreamed they would be learning as much as they have been learning following this case? Law, finance, music production, psychology, the list is endless.”
Pride, Greed, Embezzlement, Coersion — gosh, you want a forensic accountant, I want an investigative reporter to come and blow the lid off this whole ugly squirming basket of vipers. This is textbook white collar crime! Hasn’t anybody working for a major news outlet noticed yet?
@BFAF
what extra money are we talking about here?
The sales weren’t minimal, they only dropped by 50%. With everything being equal they should be showing a respectable $3-4million net profit. Where did the other $2-3 million go?
@Eliza
Ok, I see what you’re alluding to.
What I find really interesting with this company, they make these grand pronouncements during the year about how much they are raking in. Then when they really have to show the figures, there is so much mishmash, it’s unbelievable.
Credibility has to come into play here somewhere. If as has been stated, major stockholders are dumping their stock, who would be fool enough to buy it? I haven’t had a chance to look and see what their current stock price is, but either way, padding the books the way they are doing, is not going to keep them solvent for very long.
I think it was a bad move for them to brag about LSM’s $100M portfolio back in January. That had to set a lot of folks off. I know it would me.
@Eliza
“The sales weren’t minimal, they only dropped by 50%. With everything being equal they should be showing a respectable $3-4million net profit. Where did the other $2-3 million go?”
LOL! Yes, that’s the question of the hour. I say ‘hour’ because I just have a sneaking feeling that there will turn out to be many many other millions on many other days that have also mysteriously gone missing. What a shock! The powers that be at SM are engaging in systematic embezzlement of corporate funds and most likely, money laundering! NO!! Who coulda figured it!!??
they must, since SM is the company that sells stock to raise their profit. They have reporting their financial report to public
usually when a company is listed in Stock Exchange, part of the reportorial requirement is disclosure of quarterly income. Also anything happening in the company that can affect stock prices are officially disclosed to it stockholders/shareholders. JYJ case can have negative effect on stock price so they tried hard to avert that happening. We can guess SM spent a whole lot in PR expenses because of the case.
I don’t mean to be a grammar police or anything so please don’t bash at me 🙂 but “outliars” are spelled “outliers”. Less grammatical errors means antis or other hateful ppl won’t be able to say anything bad about the article, right? ^^
It’ll serve a double meaning in my head… LOL
OUT-LIARS go to hell… hehehe…
forgive the corny person… ahahahah
i think the raise of First Quarter of 2010 and the Second Quarter of 2010 is cause of single breakout and THSK – best selection 2010 v.v… released in that time, sorry for my english.
and thank you for this information admin, im so happy.
Nai..nai… O(><)o NoOoOoOo need to worries, all jyj related product (JJY) won't go to SMent pocket. It'll go to c-jes ^^
I wonder what will sment next move? Forcing shinee as 2vxq can't climb high?
Though I know SMent won't trimble easily, but their artist will get harsh n packed schedule…
My 2vxq, shinee n snsd in danger now
yeah…I have my concerns about the artists left at SM to fill the money gap.
I don’t want to offend anyone, so I’ll state openly that the following is simply my opinion, based on my musical taste and personal discernment of talent – it’s nothing more than that:
1) SNSD has a short shelf-life – you can’t keep forcing 20+ year old WOMEN into looking like 16yr old dollys. One or more of them is gonna *snap* – mark my words. Also, as a whole, I find them marginally talented and the songs they’re given to perform are mediocre. The girl group market has some GREAT talent to challenge them – SM will have to continue it’s advertising-Blitz to keep them on top.
2) SHINee – I think there’s some REAL talent there, but for me, they just don’t have that group-spark! that TVXQ had ….probably bourne from their having to suffer together through the early-Tohoshinki years. I suspect they’ll still manage to make SM a steady income – sadly we know what what the boys paychecks will look like. 😦
3) f(x) – also think there’s at least 3 talented members – but for the life of me, I can’t figure out what this group is about…it’s ALL over the place. SM keeps buying them awards – so I guess there’s a solid marketing plan for them – at least for another year. poor kids…best of luck to ’em.
4) ummmm…TRAX? …the GRACE? *missing in action*
5) TVXQ2 – I’m not even gonna go there
6) SuJu – about to go into the army and with the new debut group M-whatever, that’s gonna be in Korea & China at the same time? I think Suju has just received it’s pink-slip (American term for firing)
so yeah……Artists of SM…keep your plate full of food & try to sleep as much as you can, because you’re about to get a helluva workout.
*nods nods*
SHINee, the poor kids were supposed to have been the junior TVXQ5, but yeah… they don’t give off the authentic “family” aura that the five had, so… and SME has been neglecting them too… coz they’re busy chasing JYJ and making their lives hell… BUT look what this chase has brought them… *SIGH*
WHY CANT U LET IT GO… LET IT GO>.>
about shinee, one more thing, you know nowadays there are a lot of other groups that compete the market with shinee: 2pm, beast ( they are really popular now, at least from what i know), then others like MBLAQ, ect. Those groups compete with Shinne in both Korea and Japan market, hence, i think SM will need to find a better strategy for those boys. well, not that i care.
@haphuong91
I TOTALLY agree with that – all 3 of the groups you mentioned fall into what I call my *ABs* category….I confess that I do actually like a beastly-showing of the Abs….when appropriate…and when GOOD Abs are displayed…LOL.
Joking aside – these guys can put out some pretty decent songs too. I also like Infinite and I confess to thinking U-Kiss is pretty cute too. So yeah….SHINee boys have loads of competition.
love love your comment, the more i read the more my head noded ❤
SHINee have the potential, they have the stage present, good talents, good looks but what SHINee is lacking is a group dynamic and great personality. You see…..Minho is damn good looking but he’s too awkward.
Joonghyun have great vocals and have a good looks but he just basic in term of persona. He’s boring. Seriously, I know he have a good vocals but he’s overdoing it he disrupt the group the group dynamic. Good singer doesnt mean he/she scream and take all the high notes above everyone else. And thank to SME to burried JYJ news they release his love scandal. Stupid moves yeah.
Onew is good, he’s funny but trying too hard. He’s vocal capability is overshadowed by Joonghyun. Seriously people need to look deeper to know him and I think he often shy away from the attention.
Key some times goes over the board. Not all people think he’s bluntness cute and funny. It got on my nerves when what he said often people but his fans says it okay coz he’s key. I mean what?
Taemin….I actually frustrated and sad for the boy coz they keep making him looks like a woman and keep him like a baby. He’s a fine good looking man. He’s tall and have all the moves. I actually feel that it was kind of dumb to preserve his appeal coz for me the second generation of visual shock is him. Its a shame they tame his potential as a great sexy dance machine. Taemin have a quality of JJ in term of appearance and quality of grooves like Junsu … just weak in vocal.
SHINee lacking the X-factor. They haven’t grown yet and their concept…. seriously i dx like it. It make me feel awkward to be a fan. They doing great in the Ring Ding Dong era…they just need to be awkward again with Lucifer concept. What a waste.
Shinee lost me with that Boys over Flowers OST. I hated that song with a passion.
lol
“almost pa–”
*blocks ears*
omg…so sorry…..someone told me that was a shinee song T_T dont be offended!
That song was pretty awful too.
“SHINee lacking the X-factor”
I agree with you, though I very rarely listen to SHINee’s song and do not in general follow their progress, I was curious about them a while back. Somehow, they are missing something – so I did not get “into” them, even amongst the lawsuit fallout.
totally agree with this!!! esp with onew’s overshadowed vocal. yeah, onew bias here~
i personally hate their persona in varieties… but what i hate more is that their stage presence becomes weaker and weaker… esp. key’s vocal… duh.
”Taemin have a quality of JJ in term of appearance ”
maybe that’s a noona thing or something? LOL
Never find him that.. that… appealing. XD sorry.
LOLs its a matter of preferences I guess. No need to agree ne.. Noona thingy…no no a noona want taemin to be a baby forever. Im more like a pedo, i wanna him to be all out sexy.
2vxq (along with boa, kangta) are very respectable artists, have strong aura on stage, and obviously have talents… but they don’t sale that much :p
and super junior m without hangeng as their popularity key to china market? fail much i guess.
and my shinee, my very precious shinee, the only reason i still stick to sm… and it makes me sad because if sm sales goes down, what’ll happen to my shinee? Dx oh well…
just to be clear:
the “tohoshinki/dbsk” boom is when sme cashed in FROM FANS desperation by selling tvxq/thsk/dbsk products during the time of uncertainty/disbelief about jyj filing a lawsuit and group breaking up
rite?!
This may also be note-worthy… yes. ^^
Same can be said of AVEX. No accidents here.
THIS IS A PARTY POST YALL!!!! CYEAH~~~~~~~~~~~~~~~
Im dancing, Im grooving, Im Happy lets Parteh~~~~
SM = Should Mourn LOLs
LOL…busta’move LeftShinki ♪♫♪♫♪♫ ~
im shaking my butt in front of SM HQs lols (video it and will tweet it to Maxiediots and Chibidiots)
LOL….I’ve got to call-it-a-night…so I will depart with that visual in my head. HA! Thanks for the giggles. 🙂
nyt nyt sally_b~!! *flying kiss*
@9mmleftshinki
YOU HAVE ME DOING THE SAME THING!
I’M GOING TO PARTY LIKE IT’S 1999! Ok, I know it’s 2011, but for me Prince’s song will always be relevant. Like Kool ‘n the Gang’s – CELEBRATION!
Whah, I really feel like I’m taking a “trip down memory lane” with your posts today! Both great songs.
@eljay
This day has made me so DAMN HAPPY I hardly know what to do with myself. I do, but the glorious feeling is just off the charts!
These monsters have used the guys, and HoMin, I’m going to be fair…they used them all like a gravy train. Didn’t give a rat’s ass about them as human beings. This is what you get when your s**t hits the fan.
So, I’m going to take my pleasure moments when and where I can. I dare say, the vast majority of the rest of our family will as well. 🙂
Oh, and another one that will be added to my VICTORY PARTY PLAYLIST – ‘Let’s Groove Tonight’ by Earth, Wind and Fire! Hope that one appeals to you too.
I know what you mean! I’ve been feeling the same way and even though I LOVE my job (budget issues aside) I think this has been a fantastically happy day. Funny how the misery of a particular entity makes me so damn glad! The only thing that will make me happier will be May 27th!
Can’t decide if they’re vampires sucking JYJ’s life’s blood dry or “Deatheaters” sucking out their souls, but in either case leaving them used up, discarded and dead when they are no longer needed just to satisfy their voracious greed. They have no humanity in them to do what they do, they are the soulless ones. Our boys, pure hearts.
If they go belly-up want to join me in doing a happy dance/jig on their grave? I’m sure MANY will join us. For some reason, Lionel Ritchie’s “All Night Long” comes to mind!
Love Earth, Wind & Fire. Recently had my vinyl out and jammin’ to them.
@eljay
I will gladly join you to dance ‘All Night Long’. 🙂
But one thing, they were in the process of sucking the blood out of the guys, they didn’t succeed in sucking out their souls. The guys have their souls intact. That is how they were able to make the break. They still had enough SPIRIT to jump ship!
Totally agree that SM failed to suck out their souls and that’s why they were able to get the hell out of Dodge! But that was next in coming after trying to drain them dry, I’m sure.
Thank god for their beautiful souls.
Sorry, if this is a dumb question but why would avex share its profits with sm?
‘to soon receive the profits
from the sale of JYJ products
by Avex– the “Memories”
DVD being one such product.
Therefore, in the near future,
SM’s profits may become
higher due to JYJ.’ DONT WORRY TO MUCH thou *sarcasm* They’ll gain more ground by the end of the yr with their smtown concerts (france, peru, brazil) and the japan profits maybe? THIS IS A SMALL VICTORY THOU. BRINGS A SMILE TO MY FACE..
ok…your name honey…..it makes my imagination go wild……omo…you don’t want to know what i’m thinking about hahahahha
@haphuong91: aaaaaa…. now I’m imagining things because you wrote it like that >.<
It’s not a dumb question, that line caught my attention as well. I think that was an error on the part of the article writer. SME was not part of the agreement between JYJ and Avex and so has no claim on any of the income. SME only has a piece of THSK, they don’t get anything from JYJ products. (Unless Avex is giving them some under the table, in which case…it really doesn’t matter anymore.)
Re: Profits from the SMTown world tour. I would be very, very surprised if there were any. They have a lot of people travelling long distances for very small performances (relatively speaking).
Thank you for your good job, Admin!!!
I like this site very much, JYJ3!
clearly this is why they trying so hard to prevent JYJ “to take a bite from the pie”. scared JYJ might take a bigger share?
expecting busy busy busy year for their workhorse….errr workforce
as for JYJ…..600,000,000 won for Japan rehabilitation, representing their country as ambassadors, showing their worth as artist not just idols…the roads not easy but yup so far so good
Bad news to snt but good news to me
DELETED BY ADMIN
Let’s keep that bashing hidden next time dear… There are fans of other groups here… *pats ur back*
please dont be that mean.. it was SM’s management style we are against.. it’s their detestable blocking and manipulation and exploitation.. not the kids inside.. they have dreams and they work hard to achieve those.. they were given paths to take and it just that they choose that path while JYJ took the “road not taken” karma is kind too us because we remained as a positive fandom.. l’ll celebrate (party and dance) for SM’s and Avex’s defeat because it is winning over EVIL.. but to wish misfortune to those who have not wronged us or JYJ is something i dont want to encourage.. let us not do to others what we dont want others do to us.. But on a side note.. i really want to teach Heechul a lesson on decency (he is to bitchy),,, so with SM i really want him to learn! the rest as long as they dont talk bad.. i just wish they will be treated well ,.. just my opinion.. i’m not forcing it to anyone..
sorry for the spelling and grammars.. gosh i suck at that today!
@Jen
“But on a side note.. i really want to teach Heechul a lesson on decency (he is to bitchy),,, ”
hahhaha… same goes for the snake… heheh
Junsu-yah! U are avenged!!!
@sam-sam
Heechul is so full of himself and Lee-teuk (Is that the name of the radio DJ).
I love JYJ and Bigbang and they kept basHing TOP and other artists for no reason on their radio program. ENVIOUS MUCH? They’re way too rude and narcissistic for their own sake.
I don’t mean to offend other fans here, but it’s true. I like Siwon and some SUJU songs but their member’s behavior needs to change.
I love Siwon and Donghae.. Eunhyuk too.. but I really really am turned off by Heechul, Sungmin and Shindong.. maybe because they are the first to bash Junsu on twitter when they are in no position to accuse the poor boy.. Heechul specially the way he thinks highly of himself.. that guy receives some serious love but to be worshipped i dont think so,,
STHU!
If after that comment SONES get offended and say something creating a fanwar
Take responsibility 😡
Unnecessary and untrue, and apparently one of them *taeyeon* was good enough for Junsu
I am not an snsd fan but as human beings they dont deserve to be colled that
————please don’t make me recall that ………lol….i’ve been trying to forget that scandal hahahahha
Excuse me?! I love jyj as much as the next person and I’m elated that sme is getting what it deserves but those girls that you just insulted have NOTHING to do with this lawsuit nor did they said anything bad against jyj, so this is uncalled for. Talent is subjective, and while they may not be the best dancers or singers, these girls work hard, extremely hard to get where they are, they don’t get enough sleep or rest or food as it is, and more so now especially considering that they are now the moneymaker , so really can you not? Just rude and uncalled for, ugh seriously now unlike those others sme idols these girls has never ever badmouthed any of the boys, how does that reflect you as a jyj or as your name says, as a jaejoong fan?
OKAY~~~~~~~~~~
LET’S END THE SNAPPING AT THE PERSON ABOVE JUST ABOUT HERE
____________________________________________________
Be mature, my dearies… Don’t let ur emotions get the better of you………. AND I did type those in caps lock so I am hoping this thread will end here… OK???
Woah buddy as much as I dislike SNSD’s style I recognize that as idols they really have no say in the music they release no matter how much they say they do. I think their concept went from childish to ….mature? cause they wear darker more serious clothing in their videos with a sexy concept? I guess SM wanted them to have a more mature feel. But either way that is no reason to call them whores. You are attacking them on something personal that frankly you know nothing about.
I think Seohyun is talented overall. She could actually go solo. Taeyeon as well of course. The others…Kinda I guess. Yoona is a good actress I heard. They also have had the decency unlike some *coughHeechulcough* to not say anything about JYJ. They haven’t attacked them and while JYJ can’t contact SM artists I know they used to get along well enough so don’t be a jerk.
Seriously you called them whores with fake bodies and then you ask if you are being mean? Did you think people were going to applaud your behavior?
Amongst all those good news these weeks, this is as good too!
Can I laugh?!
I may choke if I hold it any longer!
And when people say karma, you better believe it!!
One day, if this sunken boat is to sink to the depths of the world, no one would have believe it was 3 young men who started it.
I sincerely hope those good ones left will hop onto a lifeboat and get themselves outta there.
I actually do hope HM do too.
@Jaeluphme -___- ummm. A bit rude no?
Thanks for the graph..i’m quite confuse when reading the article…but coz of the graph i know how serious this is to SM….well,i’m sorry for u SM…hope u believe in karma now….=P
Well for me this is like…yes Virginia, there is a Santa Claus, and an Easter Bunny, and the tooth fairy. 🙂
Gee SME, couldn’t hold out that second set of books could you? You see, this is what comes from not operating from a place of authenticity. Money is nice, but the means to all that money…..you can go to the well one too many times. How hard is it for you to learn this lesson?
The reason not too many people here feel sorry for you, if any, is because you are BLOODSUCKERS! Not a whole lot of symphathy for those around here. You’ve spent quite a bit of time and money trying to make the lives of JYJ hell. Well, Lady Karma is calling you out.
I know it isn’t nice to smirk at someone else’s misfortune, but in your case, I’ll make an exception. This won’t be hard. Just about everyone whose comments precede mine, have expressed what I’m feeling right about now. I didn’t expect to come here this morning and find such fun and interesting news. 🙂
Oh, one last thing. With this kind of news…don’t even think about telling the court you don’t have the money to pay JYJ what they are due. SELL THE DAMN BUILDING!
ahahahhah~! sell the damn building!!!!!!! *applauds u momma*
And little one… I am dead serious. I am hoping the Court does right by JYJ and makes it worth all the hell they have been through because of these monsters.
Love you. 🙂
aww… you reminded me about that letter/column. i have to go find it and print it out. thanks for reminding me. ❤
@butterfliesarefree2
“I know it isn’t nice to smirk at someone else’s misfortune, but in your case, I’ll make an exception. This won’t be hard. Just about everyone whose comments precede mine, have expressed what I’m feeling right about now. I didn’t expect to come here this morning and find such fun and interesting news. Oh, one last thing. With this kind of news…don’t even think about telling the court you don’t have the money to pay JYJ what they are due. SELL THE DAMN BUILDING! >>
Wheeeeeeeeeeeeeeeeeeeeeeeeeee!! lol
Join me in a chorus or two of “Happy Happy, Joy, Joy” anyone?
Sure, just give me a tune and a key…not that I know that much about music, but I’m game. I’m so happy right now, I will gladly make a fool of myself trying to sing!
Lilibaiyu & Butterflies ~ allow me ♪♫♪♫♪♫♪♫♪♫
p.s. 10 points to Lili for know about Ren & Stimpy 🙂
Ok, LMAO…I have heard of Ren & Stimpy, I just never listened to them. May I have 5 pts. please?
5 Points ! to Butterflies….plus a Bonus HUG! ❤
(\__/)
(^_^)
(“)♥(“)
@sally_b
That is too special. Thank you so much. I’ve put this particular post in my save folder, so I will have that, won’t ever lose it. 🙂
Puwahaha lower sales, higher cost….oops a lil bit too much expense on the heavy promotion you’re doing, SM? And perhaps you cannot push the executive parking fees on your artist anymore since people are observing you a lil bit too close?
What ‘wow’ me the most was the Japan sales decrease I mean 13 bl to 4? And I thought SM sales in Japan comes from Boa, CSJH, and the Trax oops.
First time I saw ppl RT me this thread, I thought of what SM said last year that JYJ had no effect on their profitibility and a fan commented that the real effecet would take place this year NOT last year. I couldn’t remember who she was but yes, her accounting skill is much better than that of SM. SM don’t you want to hire JYJ’s girl to do your accounting? She can make sure that you won’t push your medical fees to your artist’s expense anymore….*pat SM’s shoulder softly with frying pan*
Likes this part : *pat SM’s shoulder softly with frying pan*
I remember a fanart of JYJ Frying Pan *grinning*
Gotta love that last part LOL
I like ur last part “*pat SM’s shoulder softly with frying pan*” LOL.. xD
I feel so good for being mean right now!!!! I’m LMAO~ 8D
kekekekekekekekekekekekekekekekekeke~ ♫
There’s no doubting that Tohoshinki made a lot of profit for SM (understatement), BUT I wouldn’t say that JYJ was the ONLY cause of decline. It could be that SM has started to give their idols a bit more luxury(to show that they “care, and treat them well” -.-), used more money on DBSK2’s comeback than usual(to make sure their successful?) but didn’t sell enough to earn much profit, lawyers/legal fee’s (cause everyones suing SM for something)
In the end, their profits/loses are their’s not mine. I don’t buy or purchase anything that they release/produce so I’m satisfied with my stand. They know what the cause is, and they can all regret their choices together.
Well, I believe for sure JYJ is THE biggest reason!
That was all caused by JYJ.
Since their lawsuit and the subsequent “revival” of the public conscious concerning slave contracts, SM has been forced to show the public that they don’t mistreat their artists. Luxury planes, vacation breaks (have they had any I don’t know?) etc. comes out of their own pockets or more likely from the artists.
The 2TVXQ comeback was invested in heavily because they wanted to make Homin look as good as possible. Why? 1. To make fans forget about JYJ. How did that one work out SM?
2. To mask any possible flaws in Homin’s abilities. Certainly Homin have their talents and strengths but not enough to “replace” JYJ’s contributions to the group.
3. Lawyers/Legal fees- the major bulk of it is spent on JYJ’s case. I suppose one could say JYJ gave a bit of courage/an opening to attack SM like in Hangeng’s case.
totally agree with this!!!
but i guess there’s another reason. in my oppinion, sm artists’s comeback this year are disappointing… 2vxq? ha. f(x)? a very lazy concept. sjm? not that fail, but not that success. and hell yeah! big bang’s comeback is other artists’s fail! haha. i’m not even a fan of big bang, but i’ve to admit that their popularity is not a joke.
I was happy with this news until I see a comment like jaeluphme, I love this site as it’s really refreshing to read constructive criticisms and intelligent comments, and then I see a trashy comment, blargh. But anyways, its probably wishful thinking for me that this will erase sme’s arrogance by a bit, but who am I kidding here -.- it’s sme, all talk but actually empty. It’s embarrasing. Thank god jyj are out from that hell hole, at least we know now that all their hard work are paid off, and they’re finally earning a lot of moolah like they so deserve ❤
dont worry i’m sure the admins will delete it
^_^
WAHAAHAA!!!!!!! No one here will stop me from laughing right????
Nope.
So this bears out why SM is so desperate to not let their three biggest talents, JYJ, go.
One year on, the real reason is so clear, in these figures. It was never CreBeau, nor as SM claimed, a pursuit for money that caused jyj to leave. If it was money, look at how much JYJ/TVXQ would have earned, so wouldn’t they have stayed if the earnings were properly disbursed?
If it’s not careful, SM may be paving its own road to an early demise. I hope this quarter’s dismal financial record will prompt them to cut some of their losses by not dragging out the lawsuit with JYJ.
By playing fair and backing down from their offensive against JYJ, SM may also earn themselves some goodwill and might see less dire financial losses in the future.
These figures will definitely affect the sentiment of future and current investors/shareholders of SM. Looking at these figures and the increasingly negative reputation it’s amassing, I’ll bet many of it’s shareholders are already feeling nervous. I won’t be surprised that this report may drove its share price down further.
One thing’s for sure, SM will never see that Tohoshinki Explosion/Boom replayed ever again.
– drive, not drove.
Big thank you to JYJ3 for this concise and clear article with graphs and charts. The effort is appreciated.
OMG AMEN!
Just did a whole bunch of accounting homework and getting ready for exams, I go to check jyj3 and this comes up.
Is it wrong to join the family celebration and say yipee?
SM knows that without JYJ they wont make it as big, their expenses were way less when DBSK were bringing the big cash in.
Now their expenses are greater than their revenue which means NET LOSS AKA NO PROFIT 🙂
Certainly they lost a considerable talent with JYJ but I don’t think SM will slip into obscurity because of that. Not if they change their behavior. That is what drove JYJ away. The talent they have now is not being paid much attention to like SHINee for example. They saw success with SNSD so now they’ll overwork the girls as much as they can when they should be giving equal time to all their groups.
You would think that they could recognize that they have strength in their big number of artists. To give respect and due attention to all of them and not just some or the ones who are popular at the moment.
January-April was TVXQ season. All the love and money poured on them at the expense of the others. That isn’t right. I imagine their excuse was, “We are a family and your brothers need help now.”
It is a shame because they are taking with them the hard work and talent of all these young people- yes even that annoying Heechul- to the ground.
It really is sad. They do this with all their groups. Hyoyeon is the best known example. She works as hard as the others but gets no solo activities. The most they will do is give her a dance number in the middle of their songs. They have the other girls promote her at variety shows- “Hyoyeon is so funny. She is a hard worker. blah, blah, blah.”
Here is an idea SM instead of having the girls talk about her good qualities why don’t you give her a solo project so she can show these good qualities herself?
Why don’t you take the time to train her where you think she needs more help? Help her help herself instead of giving her pity crumbs or pigeonholding her to just one thing- the dancer of the group. Show her some respect because she looked up to you and trusted you enough to apply and train for all those years.
The problem here…everything you say is too much like right. That is a concept SME is not familiar with.
thanks a lot for the information, I summarized it and took it to BaiduJJ’s bar. Great News should be shared for everyone^^
I’m happy very happy
sm said it was important JYJ
sm also has not only lost money JYJ
sm must pay to spend a lot of tv and radios to harm JYJ
sm must pay to extend you trial lawyers
good news, yes!
mouth open width can’t close up!
after one year all the situation being so clear
when SM try to “catch” and “stop” JYJ,
JYJ already pick their way and go far far away…
now SM just ran ran ran trying to catch up…… sorry not one of us here will let u catch up with them!
We are JYJ family which will protect and support them till……..end? ( may i said this?)
however thank you JYJ3 for this good news!!!
aaaaaas as As per these figures “net profit”…….it seems to subtract expenses/cost and related taxes expenses; profit margin decreased indeed compared with Q1 of last year
……haha……hahahahaha………HAHAHAHAHAHA…….Ahahahaha…………………………oooouuw my stomage hurts……but well i just can’t stop laughing….HAHAHAHAHAhahaha
If SM continue to handle their business with their grudge against JYJ like this, rest assured their business will still keep going down…puwahahaha
Hope springs eternal.
Star Museum?
How about Stock MALFUNCTION!
Ahh I don’t celebrate the demise of stuff cause
I wouldn’t like someone to celebrate MY or anyone I care for demise.
(I’ll fight like JunPyo if anyone dare laugh at JYJ’s short falls)
But SM get what they deserve. I’ll just calmly smile.
SM please reinvent yourself, become a more graceful business. Cause
your practices now get you no where.
Best news I ever heard.
They are getting their income on fan goods~ almost the same on album sales. Was it only Homin who released an album in the first quarter? So a lot can still be contributed to TVXQ’s power~ though it dropped a lot since JYJ left.
All along I had thought the increase last yr 1st Q was due to sns/d cos their kor album was released on jan2010 and this yr they have yet to release kor album. But I had totally forgotten abt Jp market where it’s much larger than any where else >_< So yeah.. But does anyone knows how long does the profits take to be reflected on their stocks? for eg, a jp album release on jan when will it be reflected on sm's profits?
I do not really 100% understand you question. I try to answer.
Cost or sale that occur in a period will be refelcted in that period. For example, the sale of JP album released on Jan (2011) will be calcutated into sale of the first quarter of 2011.
For example, Today I sell you some products by credit sale, that means I will ship these products for you today and you will pay me in next period, But in finance statement of the current period, I still have to reflect this transaction bcz that is already occured today.
(hope that you can understand, sorry for my poor English)
The boost in the 1stQ of 2010 might have been partially due to SNSD, but THSK gained a lot of fans during 2009 and there were a lot of back issues being bought at the beginning of 2010 (I think I remember seeing all four albums on the Oricon chart and the concert DVDs as well) And then in the second quarter of 2010 was the release of the THSK “Best of” collections which were their best sellers EVER.
Yes, sad to say I myself contributed to that. As a post SKKS fan I was starved to get my hands on anything with Micky in it and went to find out more about him. I went crazy buying all their concert DVDs but please don’t brick me because I didn’t know about the lawsuit then.
@sensajang
“Yes, sad to say I myself contributed to that. As a post SKKS fan I was starved to get my hands on anything with Micky in it and went to find out more about him.”
I think it’s safe to say everyone on JYJ3 has contributed to lining SM’s pockets at one time or another. I know I have. I felt strongly about buying (not downloading or buying bootlegs) TVXQ’s CDs and concert DVDs in the past (before there even was a lawsuit) because (and ~man~ do I ever feel naive about this!) I wanted them to be paid for the music they made. HA! What a laugh.
Well, live and learn. I’ll never buy another product from SM or AVEX again, that’s for sure. That’s probably one of the factors in their profits declining by 90%. Thousands of fans like me are angry and outraged at their behavior and we are voting with our wallets.
I can honestly say, I NEVER gave those bloodsuckers a penny of my money. However, I think folks are entitled to make a mistake now and then, so don’t beat yourself up too hard my friend. 🙂
i have a smile on my face but it’s bitter………this is the cost of SM’s deeds. well, who said karma isn’t cruel?
hurm..i dont understand this at all=.=..could anyone please explain it againi in short but undestandable way?tq in advance pretty(:
When SM’s large (maybe largest, I forget) shareholder was in the news for selling their entire holdings last week, I thought “hmmmmm”. Now that the quarterly financial results have been posted so soon after the sale, I am laughing my whatever off. In the US, that’s called insider trading. Maybe it’s different in Korea…
In the US, there are typically only a couple of reasons to unload big holdings that fast – usually a company would try to stage the sale over a period of time to minimize its visibility. The two reasons are 1) something bad has happened to the holding company and they need to make money fast. or 2) bad financials are coming in the quarterly results of the held company and the holding company is angry at being surprised, so dumps the shares as quickly as possible (a little bit of revenge, in the corporate world). The reasoning for the sale looks pretty obvious now that SM’s results are published.
Also, if SM’s had to write new, even slightly more favorable, contracts with its artists, that will reduce profits. And since growth in revenue has come primarily from Korea, the only market they can reliably control, it casts significant doubt (to use “corporate speak”) on their ability to generate growth in the future. Another reason to sell your shares in SM. Also, they’ve had to exert an extremely high level of control in the past quarter to get the growth in Korea to even partially cover the loss of international revenue. This probably means they can’t continue the same level of revenue even in Korea. That means revenue – and profit, of course – could be even worse in the future.
And if the legal system finally gets around to resolving the JYJ case, and they are forced to pay big damages…
Hey, now’s a GREAT time to short SME. But, probably, as I’m over in the US, everyone in Korea already knows that and already done so… Clearly, their big shareholder(s) are bailing out.
I’m worried about the artists that work for them, but as JYJ can demonstrate, if they have talent, there are other agencies that will pick them up and that are less predatory. Let’s hope art and good business succeed, and that the greedy predators take their ill-gotten gains and retire to count their (our) money.
>>Hey, now’s a GREAT time to short SME. But, probably, as I’m over in the US, everyone in Korea already knows that and already done so… Clearly, their big shareholder(s) are bailing out.
my thoughts exactly … it looks really bad when their biggest shareholders are selling in such large quantities right before the Q1 reports are released and just look at their ill advised and unprofitable investment/diversification choices lately (a theme park?!?!?!).
I would hate to be SM’s CFO or anyone from SM getting grilled by analysts during their quarterly earnings call~!
@dinosaur
o/` o/` Tra-Laaaaaa! o/`o/`
Aint life grand?
@xtooline
“When SM’s large (maybe largest, I forget) shareholder was in the news for selling their entire holdings last week, I thought “hmmmmm”. Now that the quarterly financial results have been posted so soon after the sale, I am laughing my whatever off. In the US, that’s called insider trading. Maybe it’s different in Korea…”
I have a feeling there’s a whole lot of ‘does not compute” stuff going on in the K-business world. The fact that its entertainment business is stuck back in the 1950’s relative to U.S. entertainment industry biz ethics and practices was one indication, for me. It’s crazy! Especially since there appear to be more madly talented, beautiful, generally gifted people in Korea per square inch than anywhere else on the planet. These poor people! They are getting routinely ground up and spat out by this draconian music business. This needs to change.
What this post really tells me is that SME is not an $8million/year business, it is a business that just about breaks even. I would like to see more than two years on that graph, but from what I recall from past research, the net profit tended to fluctuate between +2million and -2million. (Although I often wondered how much of that was manipulated for other reasons. I have a feeling that the senior exec’s bank accounts were still growing at a healthy rate.) This is not a business that the Korean gov’t needs to coddle.
@Eliza
“What this post really tells me is that SME is not an $8million/year business, it is a business that just about breaks even. ”
Well, then that’s even BETTER news to me (gee–I feel like it’s Christmas today! lol) because one thing that really irked me was the thought, expressed a while back on the JYJFiles, that in terms of the S. Korean economy, SM might be a business that is “too big to fail” — that were they to actually go under (I had remarked that I hoped the court’s eventual ruling on punitive damages would be the final coffin nail) it would adversely affect the whole S.Korean economy and from that standpoint, the court would never go that far.
See why I’m so HAPPY today!??
🙂
The “too big to fail” argument was always seriously flawed to me. It was a favorite for the Republicans especially under President Bush’s administration. If the U.S. and S. Korea are free market economies then no company should be too big to fail. The corporation falls and others take over. That is the ideal of an open economy.
It is as close as ‘survival of the fittest’ as we can get without turning on the Discovery Channel. One famous example (a truly world class business) is General Motors. During the bailout crisis in the U.S. GM filed for bankruptcy and they were bailed out by the government under President Obama.
There are signs that they are starting to get their act together since the government guaranteed this would be a one time thing only. They have finally had positive profit growth in 2010 after nearly a decade of substandard performance. They have restructured (reorganization is the term they use) their business model and are getting somewhere with their renewable energy research. They are still under close surveillance but many have expressed approval at the changes GM willingly underwent after their bankruptcy.
They adapted in order to survive.
Why is it so much for SM to do the same? Instead of helping produce quality artists (which takes a bit of money and time; but this is a worthwhile investment) they stick to this outdated idol concept and pimp them out to whatever gets them profit. Surely the theme park can’t possibly seem like a good idea. It is the cheesiest thing I have ever heard.
I suppose cultural differences can cover some of this but if they pretend to turn this Hallyu Wave worldwide this is seriously not going to look good. Europe might be more receptive than xenophobic U.S. but I doubt even the Europeans will be gun-ho about this either. South America….don’t know what they might think of this but I have never heard of this for either Mexico or Brazil and both countries have huge cultural and economic influence in South America. The cruise ship seems like something for their rookies not for their established acts.
I wanna see how this ends up going for them. They are being such fools.
@MIA2
IMHO the big difference is that SME cannot be compared to General Motors. The comparison should be to ENRON, reason being…corporate attitude.
GM being as old as it is, has a LONG history to preserve. ENRON was a relatively newer company, and it’s coporate identity came to be associated with greed and avarice. This to me is what taints SME.
The model SME is using does not allow it to accept change is needed. Their arrogance has superceded any rational thinking. GM with its history had a story to tell, a true contribution to the American economy.
Making cars is a true part of GNP. Making records is a discretionary production, not as crucial as one where your every move can affect other industries.
If this mindset is prevalent in So. Korea, then they really are in big trouble. Watch and see which industries in Japan receive help from the IMF, they will be the heavy manufacturing ones. Ones that will keep people working. I doubt if AVEX will see any.
SME has been using smoke and mirrors to cloak itself in respectability. As Eliza said, look whose pockets have been receiving the monies. It certainly has not been their talents. Corporate motivation is the key factor here. SME doesn’t have a good bone in its body. All their past scandals should be the wake up call.
SME = The Emperor Has No Clothes.
Oh I have no doubt that the execs are getting off fine!
Could be
a. SM really is in worse financial position than their Q1 P/L statements suggests because they’re moving things around
b. SM is fine but execs are padding their own bank accounts by inflating “expenses” or by giving away bonuses to decrease the cash on hand in SM.
Either way, management still manages to enrich themselves. In fact, it wouldn’t surprise me at all if all these random investments (cruise line, theme park, restaurants) were never intended to make SM money but to channel SM’s revenues towards friends or family of the management who get awarded bloated contracts to carry out these “investments” –> SM never has to declare more taxable profit but management still gets to pay themselves and their family/friends.
channel SM’s revenues towards friends or family of the management who get awarded bloated contracts to carry out these “investments
That’s how I think SME has worked from the beginning. When I look at how over-blown the DBSK concerts were, I couldn’t help but wonder why would SME spend so much money on a concert stage that isn’t used more then 3 times? For a newbie group, yet. It didn’t make good business sense to me. (THSK’s concerts made good business sense!!) Then I started to wonder, who owned the companies that supply all the costumes and the props and all the other…stuff. It’s perfect. The concert doesn’t make a cent, and yet a whole bunch of money is made.
Somehow you entered my mind. I swear I had the same thoughts.
The guys weren’t making any money off the concerts. That’s stated in the contract. Anyone who understands the music industry, concerts is where the majority of the money is. Check out the lists every year on whose concert rakes in the moolah. That is a big item everyone looks for. Rolling Stones, U2, Madonna, etc…in excess of 80M+ every time. That my friends is no small change.
So, if TVXQ, the group isn’t getting any of this money, that leaves the company and…….. now who are these people who provide the production materials and do the promotions? And as you say, if the concert productions were extravagant, who is collecting the profit?
I’ve said this before and I’ll say it again…whoever writes the definitive story of this saga once it’s over, will make a killing, and a much needed contribution to Korean culture. And putting it out in English wouldn’t hurt. Just sayin’. 😉
@Butterfliesarefree
“I’ve said this before and I’ll say it again…whoever writes the definitive story of this saga once it’s over, will make a killing, and a much needed contribution to Korean culture. And putting it out in English wouldn’t hurt. Just sayin’.”
From your mouth to God’s ear, my dear sister!
And a loud Yes,Yes, Yes! to the rest of your post. Not only should SM lose the lawsuit, not only should they PAY through the nose, bankrupting the company, the execs and powers-behind-the-throne (and, yes, I’m lookin’ at YOU, LSM) should GO TO JAIL.
It explained why all the major shareholder sold his holdings last week (and I don’t think he was the only one to do so, or was he ?), looks like the rats are leaving the sinking ship…
Maybe that’s also why SM plans to launch a Hallyu idol-themed cruise line featuring the participation of its idols starting from January 2012, they desperately need cash. And there is also this stupidly pretentious and pompous project of a theme park, which ofc is gonna cost loads of money but they probably hope that they will succeed in making a return on investissment by milking the fans of their money =_=
Sad for SM idols but well, it’s their choice if they decide to stay in such a company, not gonna pity them.
* It explains why the major shareholder
(what about an edit button admins ? I really need one T.T lol)
January 2012 is around the corner. We will see how this goes. Maybe they plan to use this cruise ship project for Asia only. They might target Japan and the ever growing Chinese middle class. Makes more sense than for Europe.
I stand by my conviction that the theme park is a total joke. Will not work anywhere. It is just so lame.
SM idols? I can’t pretend to know what I would do if I was in their shoes. JYJ are very brave indeed and I know they will help pave the way for others. I have no problem with them as long as they don’t attack JYJ. If they do and they are happy under SM well….good for them I guess. They might as well audition for Disney Korea.
Does anyone besides me think that the cruise ship idea is bizarre? It’s arguably a good way to launder money and move it offshore, I suppose. And who knows what kind of work hours and activities could be mandated once at sea – in fact, the more I think about it, the grosser it seems. Must be too late at night… Perhaps someone can convince me it actually makes sense… Or not.
“I’m singing in the rain, yes I’m singing in the rain…………..” It doesn’t matter if outside is raining, the only thing that matters is that ¡I’M HAPPY! And, ¿Why?
Because SME is falling on the ground like huge drops of raining water. Without TVXQ-JYJ they’re nothing and they’ve nothing. Payback time has arrived. All their previous sins against their innocent artists are about to fall over their greedy heads like huge rocks. And we are sitting in the first row to witness this GREAT EVENT.
¡YES, YES, YES!
All of a sudden I remembered: ¿Weren’t they claiming at the court hearing, that the huge amount of their incomes were mainly from BoA’s singing activities?
Well, it seems that they were LYING, as usual.
¡HEHEHEHEHEHEHEHEHEHEHEHEHEHEHEHE!
-_-
SM..not only your heart is EMPTY EMPTY EMPTY TY TY TY now…your bank account too LOL
Im glad..but im thinking of a Homin meeting with SM’s staff…saying the exactly same SHIT like before “you guys have a great comeback…but he have a deficit”
I can imagine Homin’s faces again and YOOCHUN’S UNNAMED SONG came back in my head while i was reading this…
SO GLAD…SOOOOO GLAD…but i keep thinking about it… 😦
Nice. They think they were above all and now the reality. Beat you they are not sorry and are even more bitter than before. I have no sympathy for their business tactics.
beat = bet
WOW! Just wow! It dropped so much. I really don’t know whether I should laugh or feel sorry. (LAUGH for today)
Yes they lost a huge talent, not just talent, but OUR JYJ is brilliant. How can someone not cherish them…
@ILUJJ
“Yes they lost a huge talent, not just talent, but OUR JYJ is brilliant. How can someone not cherish them…”
And looking back, I’d be willing to bet serious cash that what The Three members of JYJ were originally asking SM for in terms of a better contract, percentage of royalties, etc. was fair, modest even and reasonable. I bet it was a HELL of a lot less than 90% of their profits and all of the good will of JYJ’s millions of fans!! And keep in mind, if SM had simply been willing to negotiate better terms, they would have STAYED. What a classic case of a BAD decision by a corporation against its star, top-earning employees. This was the supreme arrogance of SM. This is how greedy and imperious they were.
@Lilibaiyu – that entire last paragraph ~ RightOn !
…there’s a part of me tho’….completely without proof, which thinks that the group as 5 already had some internal ‘ruptures’ amongst themselves. I base my speculation on what I have seen of the 5 guys personalities from long-ago videos…right up to current interviews.
It goes like this:
1) Yunho is a company man, right down the line – always was, still is….and frankly he did a fine job of being the senior authority of the group. They were VERY young and driven, and Yunho, in my opinion, was good at shepherding/shouldering the *team dynamic*.
2) Changmin is a pampered Prince – only son, youngest member…handsome & somewhat volatile. He was plucked out of obscurity, by his own admission, he had NO plans to become a singer. He’s always been a wild-card to me – but clearly he likes authority-based environments. He’s not a leader, nor is he an independent – group based situations are his nest.
3) Yoochun has always seemed like the emotional-glue of the group. I think early on he was portrayed as the Emo/cry baby of the group, but to me – he seems like he’s been the most REAL about who he is and what he’s feeling (pain, anger, love) – thus allowing those around him the freedom to express more of themselves by his example. He provided/provides that center ground, or balance to the team.
4) Junsu, I think, hides a lot of intuitive intellect behind his *cute-baby* persona. In interviews he sometimes gives off a deep-feeling vibe, the next one he’s joyfully cracking everyone up with his ‘accidental’ NGs. He’s fine as a solo artist…he’s fine in a group without hogging the vocals. In short, he’s a team player – but is an All-Star player.
5) JaeJoong has always been orbiting his own planet, yes? I’m actually surprised he ended up in a group, because his thought processes seem so independent and contrary to the submissive requirements of such arrangements. It’s not odd to find him interested in Directing – AND that he’s GOOD at it.
Summation: You’ve got 2 guys who are authority-based personalities, 1 who is an emotional fulcrum (support, pivot), 1 who is all-around functional…and 1 who is individualistic. Ultimately I think it’s natural that the last three gravitated to each other in thought and action.
It was probably already a dynamic in their all-5 relationship to have disputes regarding whether or not they should just “shut up and do what the boss says”…and further exacerbated (irritated) by their financial situations and parentage. I think they were on their way to a split by sheer force of their personalities – eventually.
Wow…this got realllllly long…apologies. Anyway…just my thoughts. 😉
@sally_b
I think you are spot on.
2sally_b
“the group as 5 already had some internal ‘ruptures’ amongst themselves. I base my speculation on what I have seen of the 5 guys personalities from long-ago videos…right up to current interviews.”
YES! Damn, you girls are kickin’ my butt tonight with these incredibly fascinating insights!
I loved your analysis and I think I shared some of your conclusions from a while back also. The minute I heard about the split I said to myself, “Oh good–the essential core without the dead wood is intact and are going to do this thing for real.” I’ve said elsewhere that the real talent pool lay with JYJ. There was nothing to be lost creatively by losing the services of YH&CM. I have felt anger towards these two in the past, but now I just feel kind of badly for them. It would be hard, I would imagine, to have made the disastrous and pivotal mistakes that these two have made so publicly and live with the consequences thereafter.
Enjoyed your analysis
Never took into considerations the pivotal role their own personalities played.
In addition, to your analysis I think SM’s short-sightedness caused major strife. These boys were maturing, they were no longer the teens who strived only for fame. I also wondered if SM thought they’ld stay the same forever especially after debuting in Japan.
In Japan, they gained more freedom and Avex allowed them to grow musically. They had interactions with established artists and SM expected that after gaining new insights they’ld be content with been caged. SM failed to realize they were growing up, their aspirations were changing and they was probably a growing discontent with the idol role.
In japan, they were artists with much more freedom while in Korea they were idols. Imagine playing two roles that are in conflict with each other, it must have started to take a major strain on them having to shed their freedom and fit these idol persona. Imagine coming from a place of freedom to a place of encasement and vice versa. The emotional strain would be too much and eventually they’ld crush if SM failed to reconcile the two roles.
I think it is a reason why SM is now using a different system with their idols in Japan.
@hakuna matata
I enjoyed your take on things. A very thought provoking post.
I feel sure The Three were pushed to the breaking point on so many levels. They did something very bold among a large group of fellow idols who would never have dared it in a million years. (Maybe now–not so much. Wouldn’t it be great if there was from now on a mass exodus by the remaining artists at SM?)
Thanks everyone for your replies! ❤ After I’d hit ‘enter’ and saw how long the post was, I thought, “no one is going to read this ramble ~” (makes me feel all warm and fuzzy) GROUP HUG (♥‿♥)
What an awesome bunch of posts! Thank you, all.
that was just…..so spot on<3
I really enjoyed your analysis 😀 gonna go share with mum and sister now lol we converted her completely XD
I love when you called junsu all-around-functional, don't know why it cracked me up…I've always thought so about him haha
I call it STUCK ON STUPID.
gah…Butterflies…I hope you were talking about SM being stuck on stupid…and not me…LOL (crosses fingers)
You’re right I should have indicated where my remark belonged. Henceforth, anytime you see me use the work STUPID in caps, please know this refers to SME. 🙂
Geez, I promise myself all the time I need to work on my proofreading…’word’ STUPID.
I work in the accounting field. Just want to mention 2 other numbers I didn’t see mentioned yet. Cost of goods sold and business expenses were both hugely inflated over the previous year. This could be legitimate, but my guess is that they are putting lots of executive expenses in there instead of taking bonuses. It seems suspicious to me to have such a huge increase in just one year.
Maybe the JYJ issue forced them to increase what they are having to pay their artists?? I hope that is the case, but knowing SME, I highly doubt that.
The decrease in sales was only 3 million. The rest is probably just manipulation to pass off expenses so they don’t have to pay their artist much and to keep from having to pay their stockholders. Such a strategy will not work long-term, with or without JYJ in the picture. Their greedy business model only works short-term.
For business to succeed long-term, all sides have to benefit in a way they are satisfied. SME seems to be stubbornly resisting learning this lesson.
@lisa
“Maybe the JYJ issue forced them to increase what they are having to pay their artists?? I hope that is the case, but knowing SME, I highly doubt that.”
How could that be?? If true, then that would be truly pathetic stupidity on SM’s part. All they would have had to do was re-negotiate with JYJ, stipulating that they could not disclose the terms of their revised contract with anyone and NONE OF THIS FIASCO WOULD HAVE HAPPENED!
AND, SM would have kept TVXQ intact and been heroes. Geez! What colossal fools.
Lilibaiyu, my friend…this is where arrongance, greed and avarice come in. What made you think SME was ever populated with rational thinking execs? Same on you. 🙂
I noticed the same values and was a bit shocked that such a huge jump could occur within a year. The cost of goods increased by like 40% and business / administrative expenses almost doubled. A 100% increase in administrative cost is a bit too drastic but possible, either way its not a good sign.
I wouldn’t be shocked if they put executive expenses in there. If my memory serves me right, during the lawsuit it was revealed that DBSK paid for executive expenses and one of the reasons why dbsk had -ve incomes.
I really hope that SM would be forced to release the financial books to the court but its seems unlikely.
Well, if they are ‘executive expenses’ and not ‘executive bonuses’, NO TAXES. Sure they had that one time little bonus payout that made news. But here we’re talking QUARTERLY? Oh, Mr. Tax Man!
Thank you Adnims, …
this analysis seriously forgets that business culture in korea, in particular to sme’s business model, relies heavily on connections, in particular governmental ones – respectively speaking. it’s not like one day, korea is suddenly called out for chaebol control.
so i’m pretty sure even with this financial report, sme’s stock value will get back to its peaks and many hopeful investors in korea will still hunt for sme’s stocks like mushrooms after the rain. (this happened way too many times before that i don’t bother to re-confirm this anymore)
@popo
“so i’m pretty sure even with this financial report, sme’s stock value will get back to its peaks and many hopeful investors in korea will still hunt for sme’s stocks like mushrooms after the rain. (this happened way too many times before that i don’t bother to re-confirm this anymore)”
So what kind of goofy investors are you saying there are in S.Korea, who would invest in SM without doing their due diligence? Because the minute they do it, they, or more likely their chosen stock analysts, will find the trail of massive improprieties, padded and downright falsified books, lawsuits, lost court rulings and 2011 quarterly profits down by 90%. Not a “Best Bet” for possible investors, I’m thinking….
And you seriously have too much faith on SM.
Isn’t Lehman Brothers a much bigger company…. and boy how hard they fall…
@2 comments above: no matter how much i would like to convince myself, it’s an iron fact that business culture in korea and asia is very different from what most people from western countries think of.
do you seriously think that with that accounting history, korean tax dept was that easy to let sme pass their checking? no. and in fact, sme’s ceo was charged as guilty more than once before for sme’s business practices. but why sme still exists until now and their working method even remains mostly the same as in the past? look at their stock value after h.o.t & shinhwa break-ups, you can easily see history repeats itself here – just money inflation is the difference.
a business essay here is not in my intent. so in short, i just want to remind some fans that not taking governmental connections into account for financial assessment of sme’s situations is a fatal/critical flaw for closing a conclusion.
you’ve got the point. i kinda agree with this. after all, i’ve seen this type of “family” business in my country before, and still traces of them until now — where government, showbiz, media, entertainment, large companies are actually owned by the same “family and friends”
Of coz for a mega company in Korean like SM to fall takes time.
We’re not delusional to think just because of this analysis of the current years, SM’s gonna collapse.
Erosion has to start from somewhere.
It doesn’t mean that when SM survived the breakup of h.o.t & shinhwa, they will also be safe and sound after the breakup of DBSK.
In fact, considering the fact that years ago, internet were not as widely used and Korean wave is still a ripple, HOT and Shinhwa isn’t as huge as DBSK was/is.
With the Korean public getting more and more knowledgeable though the IT era, people know and see more things differently.
It’s no longer the big companies controlling how the musical scene is gonna be. No longer will the idols coming though the cookie-maker mold be absolutely acceptable now.
So who’s to say, SM cannot fall!
Only time will tell.
“They say the beat of a butterflies wings, can set off a storm a world away” 🙂
@popo
” not taking governmental connections into account for financial assessment of sme’s situations is a fatal/critical flaw for closing a conclusion.”
I’m not going to argue the point with you because indeed I think that there would almost have to be some government officials and agencies looking the other way a WHOLE LOT of the time with regard to SM’s business practices. There’s been a mountain of dirt to be swept under the rug. There inevitably comes a time though, when things just can’t be smoothed over one more time, when gov’t officials just can’t look the other way anymore. I think, and I’m pretty sure a lot of other people here think, that SM’s fiscal wrong-doing has just about reached critical mass, beyond which no amount of back-room pay-offs are going to be enough to save them.
That is a day I will look forward to with relish. 🙂
WOW JYJ3 you guys are daebak,,,
i dont even think about this profit before,,but now i think about it,,
Trouble in paradise, SM? Seems like your major stakeholders are jumping ship. Now I see where all those rather stupid theme park and cruise ship ideas stem from.
Heh. Advertisement burn-out? Probably from the hundreds of 2VXQ ads they did in theatres because that can’t be cheap. And probably from the under the table payouts they give to the Big 3 broadcasting companies in order to get their stars on the show. Probably from SMTown too – dozens of ‘artists’, stage production, travel expenses, lodging, food, with a couple of thousand fans to balance it all out? Doesn’t seem like it will even up.
And it looks like no matter how much they toot their own horn, it doesn’t cover up the fact that SNSD, who was unfortunately their overworked, active workhorse, didn’t increase their profits in the fourth quarter 2010 compared to their third quarter 2010. In fact, they lost money. If memory serves correct, SM PR (because who are we kidding, it’s most likely from their office) reported to media that 2010 was a profitable year and it was attributed to SNSD. Funny how it’s the first two quarters that were in the extreme positives during at a time Tohoshinki’s Best Selection + Break Out + Toki wo Tomete album/singles were in the market – the JAPANESE market, might I add, which has much greater power than the Korean market (meaning, I believe Tohoshinki’s Japanese profits will greatly outweigh SNSD’s Korean profit at the beginning of 2010 purely because of market size/condition).
But I digress…
Can I cheer a ‘wooo’? Haha…Normally I wouldn’t celebrate over another being’s misfortune but at this point, given the history of SM, I could care less about their wellbeing given that they don’t care about their employees. Karma’s a bitch but its been a long time coming, SM.
@fleur
“Can I cheer a ‘wooo’? Haha…Normally I wouldn’t celebrate over another being’s misfortune but at this point, given the history of SM, I could care less about their wellbeing given that they don’t care about their employees. Karma’s a bitch but its been a long time coming, SM.”
Oh, no! Please come and join the party that’s been well-in-progress since, well, at least since I woke up this morning in California. SM well deserves the kind of hooting and hollering, cat-calling and happy-dancing that this eye-opening report has begun.
Ladies, I believe yet another round of “WOOOOOO-HOOOOO!!
is in order!
This makes me verrrrry happy. Jajajajaj~ buuut their big acts still havent had a comeback yet~ snsd, shinee, suju, that new group~ dont forget the first 3 have their eyes set on japanese activities especially with snsd’s new full japanese album~ woooo that’ll make em more dough~ dont forget their new SM TOWN CONCERTS ( CHILE, BRAZIL AND FRANCE NOW) They’ll regain profits and will POST IT IN YOUR FACE FOR THE WORLD TO SEE~ STILL, THIS IS SOMMME NICE NEWS- still jajaja-ing
Great job admins!!!!!
Salute for the analysis and provide facts with statistics taken from SM source itself…..
SM must be the greatest joker in history for not being able to do analysis correctly.
Big joke that CSJH makes more money than Tohoshinki. Even a child knows simple counting. DBSK a.k.a TVXQ a.k.a Tohoshinki is the biggest money source of SM ever.
Come on, SM………….do I need to send you back to Kindergarten to do simple counting?
Hey…..SM…..I am a Playgroup and Kindergarten teacher? Want me to teach you huh?
i’m happy even though i shouldnt be
Yes you should be happy. Happiness is a choice. Why chose not to be happy? 🙂
I think it’s partly because SNSD Japanese activities is not yet added. On top of that they are use huge amount to push those artist how recently comeback. Even if they sale well, but because they used more to push and promote, so it doesn’t work out well for the profit sector. The annual year end report is what will count, so we just have to see….and for the long run let see what will happen to them.
Also it might increase because Homin was active.. their album sold pretty much they attended many broadcasted shows, shoot many CFs, and now they are gonna be in Japan.. In every case it will prove TVXQ was almost everything SM had and that’s why they are trying very hard to prevent JYJ to promote what they are left with..
You guys do realize that SMEnt follows the fiscal year of April 1st-31st May right? So this data is fake, the 1st quarter of the year hasn’t even finished yet.
@Blah
This information comes from Bloomberg Business Week…
S.M. Entertainment Co., Ltd. expected to report Q1 2011 results on June 5, 2011. This event was calculated by Capital IQ (Created on March 11, 2011).
The posting appears for 5/17/2011 daily stock reporting for SME.
This is from their upcoming news section… the information reported above by the admins could come from a source that already has the information. Bloomberg is indicating that the report has already been created. This could mean the shareholders have seen it and it just has not been released to the public. That could explain comments made about major stockholders selling off their shares.
I wouldn’t rush to judgement that the information is fake.
Sorry March**
Really..??? Are you sure this is a fake one …????? My God…..I am so soooo speechless..!!!!!
You might want to check out the newest posting from the admins from various news sources about the 10% drop in SME shares following the NEWS about their 1st qrtr report.
Hmmmmmm.
@butterfliesarefree
“You might want to check out the newest posting from the admins from various news sources about the 10% drop in SME shares following the NEWS about their 1st qrtr report.”
Oh, BAF….. you are so cruel sometimes. Cruel but fair. lol
I am way past tired of these yahoos thinking we are all stupid. The only reason they are breathing is because someone gave birth to them. Wow, what a waste.
Here: https://jyj3.wordpress.com/2011/05/17/news-sm-net-profit-falls-by-90-operating-profit-falls-by-80-stock-fall-by-10-in-one-day/
Thank you guys…. for some “overwhelming” news…XD!!
I was so worried this morning….Now that I’m so relieved…I think I’ll have some sweet dream tonight….XD!!!
My interest is to see who out of some of these sme groups really stay with sme later. SME is putting a lot of profit in to these new things like , Theme Park, Community housing , Cruise ship. They also put out so much money to buy spots on award shows, (like shinee being the only Korean group to go to MTV Asia awards that Japan always have. Why shinee they didn’t even fully debut yet. There are other artist who debut before shinee and have songs that are hitting the new 1 charts. Plus those artist song are originally made Japanese first . This let me know sme brought a slot for shinee on MTV to get. I mean nothing against shinee I do like them. Do i think they deserved that slot no. I don’t. ) With Fx this groups makes me wonder about them. I really don’t see anything that is unique. Like when csjh came out they had a uniqueness to them that i loved there voices blended so well together. To me i feel like sme creativeness died with DBSK, CSJH , Shiniwha , HOT. It’s funny how i will listen to something form the new generation of sme artist and find an European artist or American artist with the same song or track out at the same time or only a few mouths after. Now i know buying music and lyrics is common, lest by the sole rights to it not partial. I’m use to identify an artist with there song they sing. Like they put so much passion in to that song even if it was written for them. They own the song like it was written just for them. Usually with those artist the song is just written for them or they buy the solo rights to that song from the crater. SME dishes out all this money why not use it on upcoming producers Korea then out souring for them. This is one reason I wanting to see how much assets after SME are done with them will they have. What artist is actually waiting until there contract ends, and when this new group comes out what is going to happen with these other artist how many year will everyone wait or never to hear there favorite group again. When this happens I will just smile, why cause JYJ had already got out they tried to tell people. So when these other fans are crying and boohooing about how could sme. I will just say how could they not. You let them.
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