Big Hit, which relies heavily on the boy band for revenue, doubled its initial public offering price to debut at 270,000 won per share, for a 9.6 trillion won valuation. Volatility in early trade — Big Hit topped the daily turnover list with 1.94 trillion won worth of stock changing hands — was to be expected for such a large, high-profile listing, she added. Analysts say Big Hit has proved itself online savvy, using Youtube, social media and online concerts for revenue generation since in-person performances were cancelled because of the coronavirus pandemic. But concerns continue about Big Hit’s reliance on its star artists, which makes revenue especially vulnerable to any disruptions in output from key talent. Analysts said BTS’ successful online concerts and Big Hit’s unprecedented level of control over its revenue streams via its Weverse fandom platform that distributes BTS content and sells merchandise, differentiate the label.

Source: Huffington Post October 15, 2020 07:30 UTC