What is BTS’s net worth? Here’s why they just became even richer
BTS are the biggest K-pop group in the world and now they have the bank accounts to prove it. The group members officially became millionaires after their monthly earnings totaled $8 million in August, and some fans are curious as to how they managed to raise earnings in the midst of the coronavirus pandemic.
The group’s increased net worth came from their record label Big Hit Entertainment. CNN reported that Big Hit Entertainment recently listed its value at $4.1 billion and its shares at $115 each, which made it South Korea’s biggest stock offering since July 2017. Big Hit is owned and operated by Bang Si-Hyuk, a former producer who is credited with discovering BTS in 2013.
BTS has been signed to Big Hit Entertainment since their inception and they have been responsible for the bulk of the label’s success. They provided 97% of the label’s revenue in 2019, which led to a whopping $500 million in profit and $84 million in operating profit.
Bang owns 43% of Big Hit Entertainment but he decided to spread the wealth given how crucial BTS is to the label’s reputation. According to Metro, Bang gave each of the group members 68,385 shares in August, which are now worth around $7.9 million a piece. This means that each member’s net worth is estimated at $450 million.
The pay increase could not have come at a better time. BTS are coming off a historic stretch where they became the first South Korean act to top the Billboard Hot 100 and only the third act ever to have three albums top the Billboard 200 in the span of twelve months. Their English-language single “Dynamite” grossed $170 million in 2019 alone, in addition to breaking YouTube records for the most-viewed music video.
Loyal fan base
Bang discussed BTS’s success during a recent interview with Fast Company. He claimed that their emphasis on the BTS fandom (or ARMY) is what has enabled them to create a multimillion dollar empire in the span of seven years. “We are successful by focusing on the content and creating and delivering the content that the users want,” he stated. “And then the fans will [engage in the content]; they’re a very loyal fan base.”
The Big Hit CEO cited the use of a custom app as the secret to increasing profits. “No other app has both the community functions and the commerce function that Weverse and Weply have,” he explained. “[Our] ecosystem involves customers which lead to sales and then eventually toward an integration of both the [online] and offline experience. We already have other companies asking whether they can also become a part of this.”
Still, there are some monetary concerns in the near future. The coronavirus pandemic has forced the cancellation of concerts and weakened consumer spending over the past several months. BTS sales fell more than 8% as a result of these cancellations.
There’s also the matter of BTS members and their pending military duty. It’s required by law that all South Korean men aged between 18 and 28 have to serve in the military for two years, and all seven members fall within these ages. If they are called upon for duty, they would lose two of their prime years as a performing group and a cash cow.
Despite these setbacks, financial experts remain positive on BTS’s future. Investment Corp analyst Sung Jun-won told Metro that he expects the group’s next album to make up for any touring losses. “It seems reasonable to go for the higher price as the prospect for next year’s results seems positive,” he stated. “Album sales have gone up in the absence of concerts, and BTS is at the center of the ongoing popularity.”