Despite Hybe Corporation’s continuous push to diversify its business model and lessen reliance on BTS, newly released financial figures highlight that the entertainment powerhouse is still largely dependent on its flagship group for driving profits.
Hybe reported record-breaking quarterly revenue of 705.6 billion won ($504.4 million) earlier in August. A significant 63 percent of this came from artist-driven events like concerts and album sales, underscoring the performers' pivotal role in maintaining the company's expansion.
A remarkable increase in live performance revenue more than offset the 8.4% year-over-year decline in overall album sales. Hybe's quarterly growth was largely driven by concert earnings, which made up 26.7 percent of the company's total revenue and increased 31 percent year over year to 188.7 billion won.
Meanwhile, 257.8 billion won, or 37% of total revenue, came from Hybe's indirect revenue sources, which included fan club memberships, merchandise, licensing, and digital content. These numbers show that core revenues still rely significantly on artist-related endeavours, even though diversification is in progress.
In keeping with chairman Bang Si-hyuk's long-term goal of Hybe becoming a "360-degree business," the company has been aggressively expanding into non-music industries like gaming, artificial intelligence, and webtoons.
However, the latest financial results reveal a contrasting reality. The majority of Hybe’s profits continue to be fueled directly by its artists, particularly BTS and its members. This has raised questions about the speed and effectiveness of Hybe’s diversification strategy, as many industry observers now wonder how long the company can sustain such heavy reliance on its global superstars.
He has frequently compared the business to Disney, highlighting its expansion across fandom platforms, technology, and entertainment driven by intellectual property. Hybe, according to Bang, is "half a tech company" with plans to become independent and less dependent on any one act.
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