이 기사는 2021년 04월 15일 08:11 thebell 에 표출된 기사입니다.

South Korea’s leading entertainment agency JYP Entertainment will scrap its video content production business in an effort to focus more on its mainstay music production business.

JYP Entertainment’s subsidiary JYP Pictures recorded revenue of 200 million won ($178,000) and net loss of 700 million won in 2020, according to its regulatory filing on Monday. Its revenue decreased by 1.1 billion won year-on-year.

JYP Pictures was established in the fourth quarter of 2012 after unlisted JYP Entertainment acquired Kosdaq-listed J.Tune Entertainment in December 2010 and renamed it JYP Entertainment. The agency had to improve its business model ahead of its backdoor listing.

JYP Entertainment planned to prove its potential through its artists’ debut in the U.S. It established its U.S. unit JYP Creative in October 2011 to handle the process, but its artists failed to achieve fame, which led to the liquidation of JYP Creative in the fourth quarter of 2012. Instead, JYP Entertainment founded JYP Pictures to produce movies and TV series.

The agency wanted to generate synergy with JYP Pictures by creating actor management division and scouting Pyo Jong-rok as representative director of JYP Pictures, but the company failed to settle as well. JYP Pictures recorded revenue of 2.4 billion won and net profit of 200 million on in 2014, a year after its backdoor listing, which was its best financial performance ever.

Pyo leaving the company was critical for the contraction of its business. Pyo liquidated the actor management division in 2019 and left JYP Pictures to establish NPIO Entertainment. JYP Pictures’ China unit was also liquidated in 2019.

JYP Entertainment has decided to enhance its music production business by acquiring shares of composer management firm JYP Publishing, owned by JYP Entertainment’s Chief Creative Officer Park Jin-young. JYP Entertainment has streamlined its governance structure by incorporating JYP Publishing as a subsidiary of JYP Entertainment. It also established JYP Publishing USA to broaden its talent pool of foreign composers. (Reporting by Pil-woo Choi)