JYP's future uncertain as ITZY and NMIXX struggle to sell

Industry

Published: 20 Jan. 2024, 07:00 Updated: 21 Jan. 2024, 17:48

JYP's future uncertain as ITZY and NMIXX struggle to sell

Girl group ITZY poses for a photo during a press showcase held for the group's new EP, "Born To Be," in Yeouido, western Seoul, on Jan. 8. [YONHAP]

ITZY and NMIXX, relative newcomers to the K-pop scene, were once considered up-and-coming girl groups following the golden path of success forged by Twice — but their recent album sales tell a different story.

JYP Entertainment’s shares have declined this year due to the underperformance of its girl groups' album sales. ITZY returned to the K-pop stage with new EP “Born To Be” on Jan. 8 which sold 320,000 units on the first week of release — a decrease of some 60 percent from its prior EP's sale of 820,000.

NMIXX, as of Thursday, had sold just 505,000 units of the EP “Fe3O4: Break” that it released on Monday, nearly half of the 972,000 that its prior EP shipped last July.

JYP Entertainment shares fell some 17.06 percent on Friday from their Jan. 2 price.

Analysts see the stock dip as “excessive reflection of concerns” and that JYP's lineup remains strong, especially when considering its worldwide popularity.

“Global fandoms connected with JYP’s performers are growing, as reaffirmed by the increase in the size of concerts and rise in music streaming sales,” said Samsung Securities analyst Choi Min-ha. “The agency aims to release more than 20 albums in Korea this year, compared to 11 in 2023, and naturally, its performers should go on more world tours this year. Furthermore, based on a long-term partnership with U.S. music label Live Nation, JYP Entertainment is set to share revenue from concerts held at Live Nation’s venues in North America in addition to a minimum guaranteed payment.”

NH Investment & Securities analyst Lee Hwa-jeong also alluded to JYP’s strong international presence.

“Especially in case of ITZY, the number of sale units tend to go up due to demand from overseas after the first week of release,” Lee said. “That’s why, although the prior first week of release sales ended at 820,000, ultimate sales units closed at 1.15 million.

“The case is similar for JYP’s Stray Kids, which showed stable album sales units after the first week of release last November. [Shareholders] should eye the groups’ potential, as they perform world concerts overseas and sales rebound, instead of focusing on the lack of album sales immediately after release.”

Whether two group’s new EPs will surge in the near future remains unknown, but local sentiment has been critical of the songs’ quality.

Girl group NMIXX poses for a photo during a press showcase held for the group's new EP, ″Fe3O4: Break," in Songpa District, southern Seoul, on Jan. 15. [YONHAP]

“Why would JYP give ITZY songs like those?” one online post read. “I heard that big agencies like JYP get lots of good songs, but I don’t understand why they chose them. I was absolutely horrified by the quality of the group’s prior EP, ‘Kill My Doubt,’ and its lead track, ‘Cake,’ and the concept for recent ‘Born To Be’ only reminds me of aespa.”

NMIXX’s signature genre of music, “Mixx pop,” which its members themselves coined to refer to tracks that mix two or more genres, has also received mixed reception.

While some posts praise the rookie group’s efforts to reduce the gap between its members' varying tastes in music, others are scratching their heads over its unconventionality.

“I personally think it would have been better if the group pursued mainstream music like IVE, NewJeans and Le Sserafim,” another poster wrote. “The members would have become much more popular if they did. In the entertainment business, fame comes first. Then, someday, pursue what you might want to do.”

JYP Entertainment Park Jin-young himself, the largest shareholder of his label, appeared at the Kosdaq Wednesday and Thursday to buy an additional 60,200 shares of the company valued at some 5 billion won ($4 million), the company announced in a public disclosure on Thursday.

JYP shares inched up 1.82 percent from the previous trading day to close at 84,100 won on Friday.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]