Psy was a latecomer to the YG family of YG Entertainment, but he’s managed to become the most popular singer in the agency around the world.
Psy has come close to stepping outside of Korea after the promotional single of his sixth album, Gangnam Style, became a global phenomenon with 100 million views on Youtube.
He’s signed a management contract with the Scooter Braun Project, which currently holds Justin Bieber, and a contract for record distribution with Universal Republic Records. He thus aims to step into America and other parts of the world hand-in-hand with Universal Music Group.
The biggest benefit for YG is that thanks to Psy, YG artists such as Big Bang and 2NE1 may find it easier to make their way into the American pop market. Many singers have tried before, but Psy’s success is expected to add more strength to those attempts and heighten the probability of their successes.
Psy’s success also led to many other ripple effects.
Financially, Psy is expected to show sales numbers of at least 11 billion won this year. According to researcher Jung Yoo Suk of Kyobo Securities, the 30,000 copies of Psy’s sixth album sold, the downloads for the six tracks of the album and the 100 million views of the Gangnam Style music video on Youtube are expected to add up to at least 1.5 billion won in sales.
The 30,000 tickets sold for Psy’s concert in August THE Soaked Show and his performance at the Yeosu Expo are expected to yield 3 billion won in concert-related sales, while his current and upcoming commercial sales in mobile phones and appliances will add up to at least 5 billion won.
It doesn’t stop there. Sales of the ‘Psy Gangnam Towel’ and the ‘Psy T-shirt’, as well as payments for television appearances are also estimated to add up to about a billion won.
Psy’s success, of course, means much to YG. It was able to diversify its sources of profit, which was always pointed out to be the company’s weakness compared to SM Entertainment. YG’s sources were mostly limited to Big Bang or 2NE1, but Psy’s success has set him in their ranks, meaning YG can propel itself forward with a stronger force thanks to the newfound diversity of its profit sources.
Researcher Jung Yoo Suk said, “Psy’s popularity leads to more active promotions inside and outside the country, and will definitely add to YG’s performance from the latter half of the year. The way the Psy effect has made entrance to the American market for Big Bang and 2NE1 easier also adds to the company’s value.”
YG’s views toward America are expected to be realized sometime soon, riding on Psy’s success.