CEO Kim Young Min said "The blow from TVXQ (from the 3 members' departure) isn't that big (on SMs Royalty Income)"
This comes from an article concerning SM's foreign market sales. It is said that from January till June this year, SM earned 28 billion Won (around 25 million Dollars) in foreign market sales, which is 45% of their entire sales. However, as this money is coming in after the subtraction of other costs and income division, this 28 billion Won amount can be seen as almost pure profit.
28 billion Won is an amount not many Koreans can fathom. So where does it all come from? The system that SM works on is one where the profit from foreign markets has a SIX MONTH DELAY (2 quarters) That means that the profit made in the 1st quarter, is transferred to SM in the 3rd quarter.
Why is this important? Well. That means that Kim Young Min's statement is true.
Why? Because a certain Best Selection 2010 album was released in the first quarter of this year that sold over 500,000 copies as well as two singles, each selling 289,412 copies and 228,448 copies respectively. Oh and let's not forget the "TOHOSHINKI VIDEO CLIP COLLECTION-THE ONE-" and TVXQ nonstop-mix Vol. 2 album released in March. And then the complete single collections in June. All of the money from these sales are for Q3~Q4 OF THIS YEAR. That is why SM hasn't 'felt the blow' yet.
So where does some of this 28 billion Won come from you may ask? Well since this refers to Q1 and Q2 of this year, let's backtrack to Q3 and Q4 of last year. "Stand by U" was released, "Colors (Melody and Harmony)/Shelter" was released, part of their 4th Live Tour (including Tokyo Dome) occurred, "4th LIVE TOUR 2009~The Secret Code~FINAL in TOKYO DOME" DVD, and the "東方神起 History in Japan Vol.4" DVD as well as the Mirotic Concert leg in Shanghai.
Do you see the pattern? Why do you think SM and Avex released all those goods in the early half of this year? SM is safe in terms of money until Q4 of this year and Girls' Generation is already over there building up popularity. SM has yet to receive all the profit made FROM TVXQ.
So what are my final words? HEY KIM YOUNG MIN, I GET THAT YOU HATE JYJ, BUT HAVE SOME FORM OF RESPECT FOR THE TWO MEMBERS STILL UNDER YOUR COMPANY.
By: Jeeelim5
Shared by Kate/Always Keep the Faith
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