BTS: Business + Technology = Scale
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10 MIN READ

BTS: Business + Technology = Scale

March 3, 2021
Kai Magsanoc

(Photo from the BTS official Facebook page)


Who does not know BTS?


The 7 gentlemen of the K-pop group (who started the journey together as teens in 2013) are a worldwide phenomenon not just in music but also in business. According to a 2019 feature by Seth Abramovitch for The Hollywood Reporter, BTS “accounts for USD$4.65 billion of South Korea's GDP.” 


In October 2020, while the world battled a pandemic, Big Hit Entertainment (BTS’ management agency) went public, under the helm of CEO Bang Si-hyuk. Their initial public offering on October 15 according to Vulture was at 135,000 won or approximately USD$115 per share.


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Vulture called it “the biggest South Korean market debut in over three years,” which valued the music label at over USD$4 billion. “Each member of BTS got 68,385 shares from Big Hit CEO and producer Bang Si-hyuk in August, putting USD$7.9 million in their pockets with Big Hit’s September 28 debut,” writes Justin Curto.


“After the first day of trading, Big Hit Entertainment’s stock is valued at 258,000 won per share, or around $225, according to Variety. Shares of the K-pop company began trading at 270,000 won, double its initial valuing.” (Vulture.com)


If you are one of the few people on the planet who has not heard of BTS, these should be two good reasons for you to keep reading.


Who is BTS?

  1. BTS stands for Bangtan Sonyeondan which literally means “bulletproof boy scouts.” In 2017, the group gave another meaning to BTS — “beyond the scene.” According to filmdaily.co, this is the group living up to its reputation as a “symbol of endurance, growth, & resilience.”
  2. BTS has 7 members:
  • Kim Nam Joon aka RM (Rap Monster) - leader and rapper
  • Kim Seok Jin aka Jin - vocalist
  • Min Yoon Gi aka Suga - rapper
  • Jung Ho Seok aka J-Hope - dancer, vocalist, and rapper
  • Park Ji Min aka Jimin - dancer and vocalist
  • Kim Tae Hyung aka V - dancer and vocalist
  • Jeon Jung Kook aka Jungkook or JK - dancer and vocalist
  1. BTS was formed by Big Hit Entertainment who began recruiting members in 2010, but it wasn’t until 2013 that the group debuted in the Korean music scene. It is said that the group recorded their first studio album, “Dark and Wild,” in a garage.
  2. Big Hit Entertainment is led by Bang Si Hyuk, famed music producer and composer. Among his nicknames are “Hitman Bang” and “Bang PD” (which BTS members use to call him or refer to him). Not even Bang PD could have predicted that his company and the group (“small fish” in the Korean music industry in 2013 according to music critic Kim Young Dae) would “write a new K-pop history.” (npr.org)
  3. BTS’ fandom — ARMY — is a powerful movement on its own. ARMY stands for “Adorable Representative M.C. for Youth.” They are testament to the group’s business savvy especially when it comes to marketing and innovating, and putting their fans (or customers) first.


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Important BTS stats 

When you Google for BTS statistics, the results are overwhelming. So we chose to use Brandwatch.com’s post written by Leia Reid published last January 20 as reference, as it has the latest numbers we can find on the group.


  1. According to Nielsen Music’s annual report, only two albums managed at least 500,000 sales in 2020: Taylor Swift’s Folklore and BTS’s Map of the Soul: 7 which sold 674k copies.
  2. The Hyundai Research Institute told AFP that BTS brings about USD$3.6 billion to the South Korean economy. Almost a million tourists visit South Korea because of BTS every year, more than 70% of the country’s annual tourists. (Researchers estimate BTS will generate an economic value of USD$37 billion in the next 10 years.)
  3. BTS are also social media superstars: From January 2013 to December 2020, there were 2,395,082,950 social mentions of BTS. This means about 958,597 daily mentions, probably the definition of influencers.
  4. BTS’ official Twitter account (@BTS_twt) has an influencer score of 94, making them the most influential K-pop band on Twitter. As of January 20, BTS had 30.9 million Twitter followers.
  5. Even without doing live performances in 2020, BTS broke 7 Guinness World Records with “Dynamite”:
  • Most weeks at No.1 on Billboard Social 50 chart
  • Most viewers for a music concert live stream
  • Best-selling album in South Korea
  • Most viewed YouTube music video in 24 hours by a K-pop group
  • Most viewed YouTube music video in 24 hours
  • Most viewed YouTube video in 24 hours
  • Most “daesang” (“grand prize”) awards won at the Mnet Asian Music Awards


BTS’ first all-English song also debuted at No. 1 on Spotify’s daily Global Top 50 chart. It achieved 7,778,950 streams in a day, giving BTS the title for the biggest Spotify debut of 2020.


(Read the rest of Leia’s updated statistics on BTS here.)


READ: Brand, branding, and getting started — 10 ways to do it


BTS and marketing

Okay, over 800 words in and we just about finished introducing BTS to you and sharing the reasons why, for a group who had to personally ask people to watch them perform live in 2013 (they successfully invited an audience of 200 to come to that performance), they are now one of the models in music and business that entrepreneurs and the business sector are studying.


In fact, it looks like this is just the beginning of a series of articles on BTS that would be helpful to startup founders and SMEs. (And for the record, in May 2019, BTS performed to a sold out audience at the Rose Bowl in LA which has a seating capacity of 90,888 — a far cry from their audience of 200 in 2013).


So what can we learn from BTS and their success when it comes to marketing?


  1. Be multi-faceted

BTS started as a rap group that eventually went the direction of “idol” of K-pop group. This allowed them more versatility in their music (that they also write and produce), which can go from soothing ballads to upbeat ditties. Each member also stays true to his personality and interests which makes them more recognizable and memorable.


In business, versatility translates as agile while having an initial strategy and plan. Look at the data, listen to feedback, and realign to what they are saying. Be creative with communicating your message.


  1. Be clear about your message

“Wake Up,” “You Never Walk Alone,” “Face Yourself,” “Love Yourself” — BTS is very clear about what they stand for and what they want their fans to feel and believe in. While they also sometimes sing (or rap) about mental health issues, their very clear message is authenticity with resilience.


In business, this means being clear about who your brand is, what your brand stands for, and defining brand messages that you will consistently communicate to your audience. Put your brand book together now.


  1. Be engaged

If there is one thing BTS’ fans love them for, it’s their direct engagement with them on social media. Through the platform WeVerse, fans get updates from the band and its members, through live sessions where they answer fan questions or react to fan comments. These videos get reposted on other platforms and the engagement further explodes.


In business, while there is AI for initial engagement with your customers, it’s important for them to know that you are there, ready to listen and to attend to them. Personalization is key so they can feel seen and heard.


  1. Be caring towards your customers

BTS fanbase ARMY is a force to reckon with, especially when the band is faced with harsh criticism and incorrect accusations. They also support the band in ways that are good for the world: when BTS donates to a cause, ARMY raises funds to match that amount and donate it to the cause, too. They are a solid community that supports each other especially online.


In business, brand loyalty will ensure that you scale as you retain your customer base and keep winning over new markets. Loyal customers will also be your unofficial ambassadors who will be instrumental in word-of-mouth marketing — one of the more credible ways to market.


  1. Be grateful

Whenever they break a record, win an award, or sell out a concert venue, BTS never fails to recognize and thank their fans. They acknowledge that they would not be where they are now without their fans, which only wins them even more legions of following. In fact, according to Brandwatch, if ARMY were to form real armies, they can create 18 armies (that’s at least 400,000 per army).


In business, this translates to simply saying “Thank you” — to your team, to your investors, to your strategic partners, to your customers. Express your appreciation or show it in a way that will inspire them to do more and to do better. Recognition is empowering.


  1. Be curious

BTS, even after attaining massive success in music, did not stop there. They also went into entertainment, producing variety shows like “Run BTS!” and “BTS Bon Voyage.” You also see miniature versions of them called Tiny Tan and stuffed toy versions of them called BT21 (partnership with Line). As of writing, Samsung has released a BTS edition of their Galaxy S20+ 5G and Galaxy Buds+.


In business, this means finding ways to create other income streams that can work together for you. The sky should not even be the limit — be limitless!


BTS started small, and so can you. BizScale can help you. Complete the form on this page, email us at sales@bizscale.com, call us at 833-722-5310, or book time on Calendly today. Let’s talk.


Sources:

https://www.hollywoodreporter.com/features/bts-is-back-musics-billion-dollar-boy-band-takes-next-step-1244580

https://www.vulture.com/2020/10/bts-millionaires-label-big-hit-stock.html

https://filmdaily.co/music/bts-stand-for/

https://kprofiles.com/bts-bangtan-boys-members-profile/

https://www.thefactsite.com/bts-facts/

https://www.bighitcorp.com/eng/

https://www.npr.org/2020/11/18/935848354/hitman-bang-si-hyuk-the-brand-new-billionaire-behind-bts

https://www.brandwatch.com/blog/bts-facts-and-statistics/

https://variety.com/2019/music/news/bts-tour-rose-bowl-report-photos-1203205440/

https://www.koreaboo.com/lists/large-concert-stadiums-bts-able-sell/

https://stylecaster.com/feature/how-bts-members-discovered-1006413/

https://www.weverse.io/

https://graphics.reuters.com/GLOBAL-RACE/BTS-FANS/nmopajgmxva/

https://www.youtube.com/watch?v=Pii224aV-jY

https://www.firstpagedigital.sg/resources/blog/marketing-lessons-from-bts/