Alliance Entertainment Holding, a US-based distributor and wholesaler of music, movies, video games, electronics, has reported a 55% year-over-year jump in K-Pop sales to $32 million in the 12 months to July 31.
The company on Tuesday (August 22) revealed that it shipped over 2 million units of K-Pop items in the 12 months to the end of July, up from 1.3 million units in the year-ago period.
Alliance said it expects a further boost in K-Pop sales throughout the remainder of the year as the genre “is driving enormous consumer demand and sales growth in physical music media, particularly in the Compact Disc market.”
“K-POP is absolutely on fire with big new release shipments going to retail in August and October from multiple artists,” said Alliance Entertainment CEO Jeff Walker.
“It is no longer only BTS and a couple other bands, this is now a significant genre of music worldwide. K-POP has helped revive the CD business and we cannot wait until these titles move to vinyl, which will be fantastic for the K-POP fans.”
“K-POP has helped revive the CD business and we cannot wait until these titles move to vinyl, which will be fantastic for the K-POP fans.”
Jeff Walker, Alliance Entertainment Holding
Alliance completed a SPAC merger during Q1, joining forces with Adara Acquisition Corp.
The deal saw Adara shareholders take a 22% stake in the new company, while Alliance’s shareholders would retain a 78% stake. The deal gave the new company an implied proforma value of around $480 million.
Alliance points to artists such as ATEEZ, Twice, Stray Kids, BLACKPINK, NCT 127, NewJeans, and Tomorrow X Together as having driven K-Pop’s popularity.
The company notes that, “featuring elaborate packaging and multiple versions of releases, fans are encouraged to collect and own as many variants [of physical K-pop music] as possible.
The company adds that, “with an average retail price of $20-$25 per package, fans have been known to spend upwards of $200 to own every version of their favorite bands release”.
According to recent stats published by US market monitor Luminate, K-Pop fans spend 75% more money on music per month than the average music listener in the US.
According to Luminate, K-Pop fans are also over 69% more likely than fans of major genres including pop, R&B, hip-hop and rock, to buy an album on vinyl in the next 12 months.
Robust physical sales of K-Pop music aligns with the consumption of K-Pop songs on steaming globally.
The strong following for K-Pop artists globally has also prompted their agencies including SM Entertainment and HYBE to expand their US presence.
Kakao Entertainment and SM Entertainment recently disclosed plans to set up a joint North America division, while BTS’s label HYBE, through its US subsidiary now dubbed HYBE America, had acquired Atlanta-headquartered rap powerhouse QC Media Holdings, aka Quality Control, earlier this year.
With multiple releases throughout the year, it creates more opportunities to serve K-Pop artists’ fan base, said Alliance.
Alliance’s Nasdaq-listed shares closed up 2.5% on Tuesday. The company became a listed entity on the Nasdaq earlier this year after completing its $480 million merger with blank check company, Adara Acquisition, in February.
Music Business Worldwide