Cube Entertainment is filled with aspirations to secure new growth-oriented driving force through Chinese advancement and a new TV channel.
On April earlier this year, Cube Entertainment was listed on KOSDAQ following after its merger with SPAC. This listing debut has pushed Cube Entertainment as one of the ‘Big 5’ of the local entertainment agencies, alongside SM Entertainment, YG Entertainment, JYP Entertainment and FNC Entertainment.
Established in 2008, Cube Entertainment started recording a profit since 2009. Last year, its revenue recorded at 21.1b Won, operating profit of 2.35b Won, and a net profit of 1.8b Won. Cube, being an affiliate of iHQ, has gained investment capital to enhance its music business and plans to establish itself as an undisputed global K-POP brand.
◇ Retains Signature Idols and Stable Contents are Cube’s Strength
Cube Entertainment holds the characteristics of ‘killer contents’. It’s rare for a company to have both prominent male and female idol groups in the market, but for Cube Entertainment, they have BEAST and 4minute. Moreover, the inclusion of actor-singer ‘World Star’ Rain widens a stable set of ‘portfolios’, which forms the core strength of Cube Entertainment. The 3rd quarter of last year (July~September) had recorded a revenue of 14.2b Won and operating profit of 1.7b Won. Last year’s income can further be broken down into Music (30%), Concerts (21%), Royalties (18%), CF and other broadcast appearance (14%). Its local and foreign income was in a ratio of 71% and 29% respectively.
Cube Entertainment’s signature star is definitely BEAST. Debuted in 2009, BEAST is a team that is responsible of 50% of the total revenue. Last year, BEAST was chosen by Billboard as ‘KPOP Top Artist’ and its fancafe members recorded at more than 250,000 members. They are active in Japan activities as well. For three consecutive years, they have held arena tours. Next year, they aim to performe on a Dome Tour. Also, BEAST established label ‘BEAST MUSIC’ and will release a song a month in Japan. Member Son Dongwoon too, is currently preparing for a solo album in Japan as well.
4minute who debuted in the same year as BEAST, too, are active in promotions as well. Earlier this year, in February, 4minute released album titled ‘Crazy’ and has recorded 22 million views on Youtube within 4 months. 4minute’s signature star Hyuna further secured its position. Last year, she released solo track ‘Red’ and left a strong impression among fans. Hyuna is currently in works to prepare for a solo comeback in the second half-year.
Following after BEAST and 4minute, Cube’s latest team includes male group BTOB (debuted in 2012) and female group CLC (debuted this year). In particular, BTOB member Yook Sungjae has recently gained the spotlight for his variety and drama skills, which prompts the group on a rising trend.
Singer and actor Rain, gagman Kim Giri, actor Na JongChan, soloist G.NA, Shin JiHoon, Roh JiHoon are also under Cube.
◇ New Driving Force #1 ‘Rain-BEAST-4minute Triangular Formation into China Market’
The listing has provided Cube Entertainment 14.2b Won of ‘bullets’. These funds are for the purpose of talent development, training facilities for artists and trainees, overseas market advancement and other areas. Cube placed the most emphasis on China market as part of their strategy. Starting from this year, Cube will enter into the Chinese market, and are currently in discussion with 2~3 local firms. The first frontier for Chinese advancement is Rain. Rain’s 6b Won of appearance fees for 40-episodes Chinese drama ‘Diamond Lover’ will be aired around August~September. Rain has further established himself in the Asian market. He gained various awards and had built a demand for his Chinese activities, including a model advertisement as well.
BEAST and 4minute too, are accelerating into the Chinese market. BEAST has up to 530,000 members in China’s famous portal site, Baidu. This year, they shall start with a tour and visit 100,000 fans at 5 stops. 4minute too have charted at #1 for 10 consecutive weeks, a hot response from local fans. 4minute’s Baidu members have exceeded 250,000 members. Recently, 4minute has gone on a few activities in China. BEAST and 4minute members have also received acting proposals in China as well, according to Cube.
Rookie girl group CLC are aiming for both Chinese and South East Asian market. CLC member Sorn is a Thai member and had won audition program ‘KPOP Star’ which was held over 5 countries.
◇New Driving Force #2 ‘First in the industry – Launch of Cube TV, Enhanced Contents’
Among the Cube’s latest list of new items, ‘CUBE TV’ which is set to launch on 1 July, is the most attention-grabbing. CUBETV is a 24-hours channel where Cube will be involved directly in producing and organizing its contents, while actively showing Cube’s artists looks. Not only through TV, CUBETV will also be aired on Cable TVs and IPTV as well.
CUBETV, one of the channels of CUMedia (which operates channels such as DramaX and ComedyTV and K-Star), is the first ever channel created between a broadcast channel and an entertainment agency. From Cube’s point of view, as it receives support from iHQ in terms of production staff and expertise, it is a rather cost-effective investment for Cube. Meanwhile, it increases the value of Cube brand while serves as a window of opportunity to diversify its business portfolios. Although the target for revenue this year is low, anticipation is rising as this investment could potentially turn out to be a major source of revenue starting from next year. As part of CUBETV launching program, BEAST member-and-producer Yong JunHyung ‘Yong JunHyung’s Good Life’, BTOB’s own variety show ‘BTOB SHOW’ and girl group CLC’s real variety ‘Beautiful Mission’ will be aired.
This year, Cube will strengthen their Merchandising (MD) business. In 2014, MD was 5.9% of the total revenue but there are plans to diversify products and distribution channels. To achieve this, Cube has recently set up a task force for this purpose.
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Source: Sports Seoul