Heads up, Kpop Fans! YG Entertainment is working with Binance to launch NFT-backed “trendy attempts” to interact with fans. The company that gave us global Hallyu icons Big Bang, 2NE1 and Blackpink operates a record label, talent agency and a concert production company under its umbrella. So expectations are high from the fanbase of the artists and celebrities under its wing.
YG Entertainment’s NFT Move
Through this partnership, the two companies will be collaborating on different blockchain projects. This also means that the South Korean multinational entertainment agency is doubling down on its Metaverse and NFT efforts. In terms of role, YG Entertainment will provide content and assets while Binance will develop the space and infrastructure for their future projects.
YG CEO Bo Kyung Hwang said, “collaboration with Binance has provided an opportunity for YG to secure royalties and business opportunities for rare and valuable content. We also hope that it could further strengthen the bond between fans and artists. As a Kpop leader, we plan to steadily build an innovative and eco-friendly NFT ecosystem.”
In 2021, NFTs made digital collecting sexy. On the other hand, Kpop fans are known for collecting merchandise of their idols. It’s part of the fan experience, so to say. It grew even more during the pandemic because artists could not go on tour. So there’s a huge addressable market for YG Entertainment’s NFT Collectibles and Metaverse experiences.
Binance NFT Global Head Helen Hai is confident that this partnership will result in a “strong cooperative relationship.”
KPop Meets Tech
The K-pop industry has been growing aggressively over the last couple of years. For example, the 5-year old Big Entertainment agency is worth around $4 billion according to Fortune.com. What’s even more impressive is that 90% of the revenue comes from just one group: BTS. K-Pop merchandise is the biggest contributor, with $9.48 billion in exports. Since NFTs make collecting easy and sexy, it is a perfect fit for the K-pop industry.
It is exciting to see how the two-billion-dollar industries will further boost each other’s growth. In 2021, the NFT market had its “best year yet” with over $23 billion in trading volume, according to Dappradar. Most of the drops came from athletes, celebrities and artists based in the US. So this year, the Asian market will play a more active role in the space.