The battle for traffic in Chinese entertainment

Chapter 493 The Kpop Revolution
"I have to say, the success of 'Blinding Lights' exceeded my expectations. At first, I also thought it would be a pop hit, but I didn't expect it to be such a super hit. Ambitious challengers came one after another, failed time and time again, and even faced the impact of rule changes, but even if it briefly relinquished the top spot, it was still able to immediately reclaim its throne!"

"Xing! Everyone is looking forward to your English album. If you tell me now that the album release is canceled, I'll go crazy. Tell me you'll definitely release the English album next January! I'm absolutely certain it will be a great album!"

John was unusually excited on the phone.

They sounded to be in a very good mood.

Xu Xing had heard from her agent in the United States, Kristint, that Interscope was feeling frustrated because of the unexpected weakness of Bigit and BTS.

They had already agreed to sign BTS and were waiting for the official signing announcement next year, but BTS seems to be on the verge of collapse.

Bighit's IPO application was officially rejected yesterday, making their situation even more precarious.

BTS is embroiled in controversy over stockpiling music, and all their fans are hoping for an official response. However, all they've received are media reports that fail to convince other netizens.

BTS is being attacked by forces that want to destroy Kpop, and there have been many such press releases, but Korean netizens are getting more and more annoyed by them.

Perhaps Bighit is referring to Hsu Hsing and China, but the undeniable dominance of *Blinding Lights*, with each additional week at number one, demonstrates just how outrageous Bighit's attempt to piggyback on Hsu Hsing's popularity with *Dynamite*'s release is. Do they think they can escape blame by simply pinning everything on China?

BTS members have also been leaking information through unofficial channels, repeatedly playing the victim.

This was the most successful PR move, winning the sympathy of fans. The fans felt that the seven innocent boys had been ruined by the company's hoarding of music data, which they felt was done without their knowledge. All the boys' hard work was as real as flesh and blood, but now they were being accused of being fake.

Petitions demanding Bang Si-hyuk's resignation and condemning him to the point of death are appearing everywhere online and offline in South Korea.

Well, since deep down I don't really believe that Xu Xing is the mastermind behind the suppression of Kpop, if I have to find a culprit who made Kpop into its current mess, then it can only be Fang Shihe.

But Bang Si-hyuk completely ignored it, no matter how much criticism he received from the outside world, he just focused on playing dead.

Just like when faced with the acquisition offer from CJ Group, Bang Si-hyuk firmly refused regardless of how bad Bighit's financial situation was according to external analysts.

BTS's Korean fans haven't abandoned them yet, and Bighit also has Seventeen, a popular boy group that can share the pressure. He believes that Bighit just needs to temporarily slow down its previous rapid expansion, take a year off, and wait for the pandemic to pass as soon as possible so that it can start touring with both boy groups and get back on track.

After a year of reflection, we should also rethink our future development strategies.

After the rule change, it has become much more difficult to win the B-list, but it is not impossible. The key is to try to avoid Hsu Hsing.

The current Xu Xing is no longer BTS, or even the entire K-pop scene, and cannot be compared to them anymore.

Bang Si-hyuk made up his mind to strategically scale back, and even considered cutting the group that was planned to be launched as soon as the IPO was successful, as well as the girl group plans that were in preparation, and slowing them all down.

He naturally could no longer show Interscope the wonderful prospects he had previously touted.

Interscope already has Hee Hsin and Blackpink from Asia. If Universal Music is still interested in them, they can have other labels sign BTS.

Interscope also hopes that Bang Si-hyuk will accept CJ Group's acquisition offer, so that Bighit will still be a very strong partner.

Now, Bighi has also exposed that Bang Si-hyuk told too many lies, and that BTS's fan base in Asia is far less powerful than Heo Hae's.

China is also crucial to BTS.

The astonishingly high download volume during the week of Dynamite's official release is a direct reflection of Bighit's loss of most of its Chinese fans.

BTS's international fan clubs have fallen into chaos due to the devastating collapse of Chinese fans. These Chinese fans were originally willing to embellish all of BTS's statistics and provide all possible assistance to BTS's overseas fan sites.

For example, spending all their money to boost rankings, and after obtaining a qualified US account, engaging in intensive manual ranking manipulation...

This was evident in BTS's previous campaigns that led to their songs to chart on Billboard.

That week, BTS's fan club in China was almost entirely deserted, with only Bigit's professional fans remaining.

Bighit's current dire financial situation, besides the loan for the Pledis acquisition, is also due to their decision that week to gamble beyond their capabilities under those circumstances.

John, as a top figure in the American record industry, may not have a clear understanding of Bighit's original strength in Asia, but he saw their actions in the United States very clearly.

Scooters are starting to regret betting on BTS.

As industry insiders have been saying in private conversations: Asia already has Xing, so how could it possibly be truly crazy about BTS?

Is it just because there are 7 of them and Xing is the only one?

Because they dress like women when they dance, while male dancers are masculine and strong.
Bighit knew this too; they knew they had to win against Xing, at least in marketing, so that BTS could become Asia's representative in the world.

After all, Xu Xing's development focus is on China, while BTS is willing to stay in the United States forever.

In the end, BTS failed, Bighit failed, and Bang Si-hyuk failed.

It failed not only in the United States and around the world, but also suffered a major defeat in its home country of South Korea.

They were not yet willing to make a comeback as quickly as possible; Bang Si-hyuk only wanted to keep Bighit firmly in his hands.

Interscope has no reason to wait for them.

Kpop isn't just about Bighit. Hsu Hsing previously recommended Blackpink, which performed quite well. I've also heard that Hsu Hsing has a close relationship with SM Entertainment, the veteran king of Kpop.

SM Entertainment also explored expanding into the United States.

If they are determined, Interscope could find another partner.

"So, Xing, what do you think? I heard from CJ Group's PR that they also have plans to collaborate with SM Entertainment. What would happen if we collaborated?"

After his exaggerated exclamation, John got to the point.

As for the so-called "great album," Hsu Hsing knows her own limitations. All the UK singles she has released so far have only received a three-star rating from European and American music critics, and that was after some public relations efforts.

In his previous life, these singles, which achieved phenomenal commercial success, didn't receive much critical acclaim. If it were a Chinese artist like Xu Xinglai, who was also embroiled in controversy over chart manipulation, the critics would be even less likely to give him a favorable look.

So, that's the real topic of this phone call.

"It sounds pretty good. Compared to Bighit, SM has the disadvantage of not having enough experience overseas, but with the help of CJ Group, they should be able to catch up quickly. A company like SM has more foundation than Bighit, is not so impetuous, and would be a very stable partner. But the problem is that SM and CJ Group have a general relationship, and are even somewhat estranged. They may not be willing to cooperate deeply with CJ Group."

Xu Xing shared his views.

The promotion of K-pop and Korean films in Europe and America largely relies on CJ Group, which has been deeply involved in overseas markets for many years.

Back then, SM Entertainment and Mnet Entertainment, a subsidiary of CJ Group that handled physical album distribution, fell out over the acquisition of record distribution rights.

Although the two sides eventually reached a settlement, a few years ago CJ Entertainment made a strong comeback with "Produce 101," a show that ushered in a new era of talent shows. This alerted the three major traditional entertainment companies, as they had basically never sent trainees to participate in the PD series.

In early 18, Big Three and Bigit entrusted their album release to iriver. NCT and Red Velvet, both under SM Entertainment, stopped promoting their music on Mnet. At the end of last year, PD series was exposed for a vote-rigging scandal, and SM Entertainment decisively severed ties with Mnet, effectively ending their relationship once again.

However, CJ Group's interest in SM Entertainment has always existed.

In the long acquisition saga of SM Entertainment in its previous life, CJ Group was the first to appear.

Bighit's failure and Bang Si-hyuk's "unwise" acquisition should have annoyed CJ Group. Although they had just started collaborating with Bighit on Belift, quickly choosing a new partner is understandable. Bang Si-hyuk's aggressive and arrogant strategy in Bighit's failure was itself a subject of criticism.

Instead of aiming for Hsu Hsing, Bighit should wait until they win the championship at a different time. They shouldn't try to get rich quick. This way, they can fill their stomachs first and still eat well.

—Of course, Hsu Hsing released her single at the end of June and it's been number one ever since, so they didn't really have much time to choose. When Fang Shihe is reviewing the performance, he probably thinks that the quality of the single "Blinding Lights" was the root cause of their failure.

In addition, CJ Group should have already obtained inside information that if James Harden wins the upcoming election, K-pop will usher in a golden age of development.

Therefore, they were unwilling to wait for Bigit any longer.

"However, from what they've said, they seem quite confident. There are no permanent enemies; cooperation is the most wonderful thing in the world, isn't it?"

John laughed.

“Yes,” Xu Xing smiled, “I will try my best to help facilitate their cooperation.”

"Our cooperation."

John corrects.

"Ok."

Xu Xing smiled again.

After hanging up the phone, Xu Xing first told Sun Man, who was sitting next to him, about the conversation.

"Hoping NCT will succeed in the US?"

Sun Man's first reaction.

Red Velvet has basically been buried, otherwise bringing them up together would be just as ridiculous.

"I also find it a bit ridiculous. In every respect, BTS is the K-pop group most suitable for the US market. Bang Si-hyuk has been telling them a perfect story for seven years. On the other hand, the chaotic NCT is just a jumbled mess."

"In addition, all the boy groups of EXO's generation have started their military service. Apart from BTS, there is no popular boy group with a full complement of members. Bang Si-hyuk should have seen this as well, and he was determined not to sell Bighit to CJ, just waiting for CJ to have no choice but to continue to cooperate with him. CJ couldn't swallow this insult, so he chose to try SM."

Xu Xing shared his guess.

"Do you need our help?"

Sun Man asked again.

"Passing on a few words won't hurt. SM is better than Bighit, and we have a better relationship with them. Besides, from what John said, it seems that the collaboration Interscope and CJ are talking about is getting SM to invest in a label and then bringing me in? Unlike Bighit, SM is a publicly traded company, so acquiring it would be much more complicated. Of course, I definitely won't publicly collaborate with them. But if I can make money behind the scenes, why not?"

Xu Xing shrugged.

More importantly, K-pop's glory days were only a few years ago, and this time BTS suffered a crushing defeat at the most crucial moment, having their newly paved path cut off.

Therefore, regardless of the outcome of the collaboration between CJ and SM, it is impossible for K-pop to truly reach the pinnacle of the world.

After speaking with Sun Man, Xu Xingcai called General Manager Qu.

If Hsu Hsing-chen can play any role in the collaboration between CJ and SM, it will be through President Qu who will push it forward.

In fact, SM now has a better relationship with the Kakao Group, and in its previous life, it was ultimately acquired by Kakao.

Ms. Qu revealed over the phone that she had previously been in contact with people from CJ Group.

Zhengrong is currently the most prominent film and television company in China, holding the trump card of Xu Xing, and also has a close relationship with Netflix.

CGV Cinemas, a subsidiary of CJ Group, is doing quite well in the country.

However, due to her connection with Tencent, Ms. Qu had more dealings with the Kakao Group. As far as she knew, the Kakao Group also had plans to acquire SM Entertainment.

“After discussing with Interscope, CJ had John approach me, probably because they knew we were closer to Kakao. That’s probably why they wanted to see if we could play a role.”

Xu Xing feels that you should be like this.

“It’s certainly possible.” Mr. Qu nodded. “Then I’ll make some contact and see. Bighit has suffered a major blow this time, and there’s going to be a big change in the Korean entertainment industry. It would be quite interesting for us to get involved.”

Zheng Rong's connections aren't limited to CEO Qu, who has mediocre relationships with CJ, Kakao, and SM; there's also Xu Xing.

After BTS's failure, Hsu Hsing was considered by the American music industry, represented by Interscope, to be the only Asian who could temporarily achieve success in the United States.

No matter how much CJ Group lobbyes, Interscope will always prioritize Hsu Hsing.

After hanging up with President Qu, Xu Xing finally called Li Xiuman.

Upon hearing this, Lee Soo-man sighed deeply.

“Son-in-law Xu! This is the opportunity SM has been waiting for! I personally absolutely support it. I know this is the key for SM to save itself and move towards a more glorious future! If I can see SM's members achieve the same success in America as my son-in-law Xu before I die, I can die in peace! I—”

Is President Li seriously ill?

Xu Xing frowned and interrupted him.

That's enough, you're dreaming.

"Uh haha~" Lee Soo-man scratched his head awkwardly, "No, I'm still in good health! I mean, I know this is SM's next direction, as important as my life! But, you know, I'm not the only one who makes the decisions in the company. However, son-in-law Xu, I'm confident I can persuade the other directors, as long as CJ Group doesn't want to acquire us."

“I don’t know either,” Xu Xing shook his head. “You can discuss their plans yourselves. I’m just passing on a message.”

In his previous life, Lee Soo-man was criticized by the management because SM Entertainment seemed to have failed in the face of Hybe's success. They all wanted him to step down. In order to protect himself, he sold his shares to Hybe, hoping to retain control of the company. However, he was eventually kicked out of SM Entertainment.

With Bighit's recent failure, CJ Group, along with Interscope, chose to collaborate with them. For Lee Soo-man, this opportunity was indeed as important as his life.

"Oh, oh!" Lee Soo-man nodded repeatedly. "Son-in-law Xu is so busy, there's really no need for him to bother with such things! SM Family will seize the opportunities brought by son-in-law Xu!"

"..."

Xu Xing wanted to roll her eyes at him.

Lee Soo-man's smile widened.

"All that matters to me is to take good care of Yoon-ah. She's eager to see me too!"

They're sending Lim Yoon-a again.

Lin Yoona did tell Xu Xing that she also wanted to come, but Xu Xing hasn't decided whether to let her make more friends yet...

(End of this chapter)