Tuesday, April 6, 2010

[TRANS] 100406 avex Loses 5 Billion Yen Due to Tohoshinki's Suspension, "How big would the damage be…," said avex's president

T/N: Please keep in mind that this article is from a business newspaper. The opinions regarding the group's relationship might or might not be correct.

The popular Korean dance-vocal quintet Tohoshinki made an announcement that they will taking an indefinite break. Their Japanese management company avex said that they would continue to support the members' solo activities, but to Japan and Korea, what would be the cost of losing this big name artist?

Last year, due to unreasonable contract period, packed schedule, and allocation of earnings, the 3 members of Tohoshinki went on an exclusive contract dispute with their Korean company, SM Entertainment. There have been reports that they are in the danger of disbandment.

It has also been reported that even during the backstage of NHK Kouhaku Utagassen, they also divided in 3:2 teams, showing that it is hard to recover their relationship.

On the other hand, their popularity hasn't shown a sign of decline, with their first best album's initial sale passing the mark of 413,000 copies, creating a new record for a foreign artist in the history of the music industry. Since the news of their suspension of activities broke on the 4th, it is reported that more than 6,000 supporting messages were sent from Japan, Korea, and other Asian countries.

avex group holdings' president Matsuura Masato made a shocking confession on his Twitter, "How big would the damage be…." He also said, "Since I don't know if the Korean side will permit us, I can't say anything in my position," and regarding their fanclub Bigeast, he also said, "I will try my very best to have Bigeast continue."

Last year, EXILE and other top artists from the company have experienced a great rise in popularity as well as offers from the movie industry, and the company has also grown larger. Starting from 1/1 this year, the company has switched into a pure holding company and decreased the number of members in their board of directors from 13 to 7 in order to improve the company's business management.

Music critic Tomisawa Issei analyzes, "Without Tohoshinki means that they wouldn't be able to sell an approximately 3 to 5 billion yen (31.9 to 53.2 million dollars) worth of products. Right now, they are facing the issue of what to do in order to cover that deficit."

"avex is very good at selling and discovering new artists. Last year, because of the "Tohoshinki's disbandment" rumor, ICONIQ became popular. With what happened this time, there's a good tension within the company, and maybe they will use this chance put out a new artist."

On the 5th, a day right after the news of Tohoshinki's suspension of activities broke, avex group holdings experienced a drop of 3 yen per share in stock price compared to last week's price of 830 yen, and their stock transaction has also showed signs of slight weakening.

Source: Sankei Biz
Translation: linhkawaii @ OneTVXQ.com
Credits: OneTVXQ.com { One World. One Red Ocean. One TVXQ! }

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