HYBE’s U.S. Label Revenue Exceeds K-Pop’s International Revenue... Acceleration of Global Financialization for Korean Music IP

The global expansion of the K-pop industry is also manifesting as changes in its financial structure. In HYBE’s earnings report for Q2 released on the 6th of last month, revenue from its U.S. labels surpassed K-pop’s international revenue for the first time. HYBE’s revenue from global groups increased by 10.2% year-on-year to 705.6 billion won (575 million dollars) in Q2, while its operating profit rose by 29% to 65.9 billion won (47 million dollars). Of particular note are the streaming revenue figures for the first half of 2025 (January to June). The streaming revenue generated by HYBE’s U.S. labels, Quality Control and Big Machine Label Group, amounted to 63 billion won (45 million dollars), exceeding the international streaming revenue of Korean artists at 59 billion won (42 million dollars). Compared to Korea’s domestic streaming revenue of 18 billion won (13 million dollars), this highlights the strong profitability of HYBE’s U.S. labels. A significant portion of this success stems from country music. Thomas Rhett’s “Die A Happy Man” received a RIAA diamond certification during that quarter, and Riley Green’s “Worst Way” topped the Billboard Country Airplay chart. The rookie group KATSEYE, produced by HYBE America, has also achieved success. KATSEYE’s EP “Beautiful CHAOS,” co-produced by Jefferne Records and HYBE America, entered both the Billboard and UK Official charts, and all tickets for their 13-city North American tour were sold out. The group’s singles “Gnarly” and “Gabriela” charted on the Billboard Hot 100 for multiple weeks. KATSEYE was formed through a global audition conducted in collaboration between HYBE and Universal Music Group’s Jefferne Records. Interestingly, according to KATSEYE’s Spotify listener distribution, only 1% of listeners are from Korea, while 20% are from the United States, 17% from Europe, and 12% from the Philippines. This clearly reflects the characteristics of the K-pop 4.0 era. Concert revenue in Q2 increased by 31% year-on-year to 188.7 billion won (136 million dollars). BTS member Jin’s “#RUNSEOKJIN_EP.TOUR” and j-hope’s “HOPE ON THE STAGE” world tours, as well as SEVENTEEN’s fan concert “[WARNING]” featuring Hoshi and Woozi, all attracted large crowds. INHAIPEN performed at Coachella Festival, and the tours by TOMROWXTOGETHER and LE SSERAFIM also performed strongly. Meanwhile, the global financialization of Korean music IP is accelerating as well. Music copyright trading platform Musicow successfully sold out its first music copyright-based securities offering in the U.S. Musicow is the world’s first music copyright fractional investment platform, established in 2016. This platform allows music rights holders to sell their claims on copyright royalties in one go, then break those claims into smaller units for auction. Half of the auction proceeds go to the artists. Musicow’s first U.S. offering was based on the copyright rights to Kelly Clarkson’s 2011 hit song “Mr. Know It All.” Rights were sold at 20 dollars per share for 382 weeks, raising a total of 7,640 dollars, and all shares were subscribed by U.S. investors by August 5th. This marks the first time a Korean company has introduced music copyright-based securities to the U.S. financial market. Musicow filed its securities application with the U.S. Securities and Exchange Commission (SEC) under the Regulation A+ framework and received approval for issuance in May. This achievement serves as a signal for the transformation of Korean cultural IP into global financial assets. It opens the possibility for various Korean cultural contents such as TV series, movies, and games to be included as investment products in global financial markets. A Musicow official said, “The full sales volume demonstrates strong demand from small groups of investors,” adding, “Our mission is not only to support artists but also to ensure that everyone can access the financial opportunities offered by the music industry.” Musicow plans to launch full-scale services in the U.S. market by the end of the year through a strategic partnership with Rock Nation. Jay Brown, vice president of Rock Nation, said, “Our mission is to improve the music ecosystem and provide artists with the tools and services they need.” The outlook for the global music copyright market is also positive. According to Omdia, the global music copyright market is expected to grow from 43.9 billion dollars in 2024 to 53.4 billion dollars by 2028. Rising interest among retail investors in trading music copyrights due to the surge in music streaming services continues to increase.