Debunking Myths about Big Hit Entertainment’s Pricing and Marketing Strategies
Is it wrong that Big Hit lowered the price and offered different versions?
Big Hit Entertainment (BH) has been praised for its shrewd business acumen and marketing prowess, particularly in the K-pop industry. This article aims to clarify some common misconceptions regarding their pricing and marketing strategies, focusing on the recent lowering of the price and offering of different versions of BTS songs.
First of all, understanding BTS’s goals and fan community
“Dynamite” was not released for the sole purpose of charting at #1 on the Hot 100.
In 2020, BTS released “Dynamite” to uplift the spirits of their fan community during the pandemic. The primary objective was to provide positive vibes and entertainment, not to compete with other songs on the charts.
It was the fan community, known as the Army, who fervently pursued the goal of achieving a chart-topping hit for BTS and a significant view count within 24 hours. It was the Army's unwavering support and dedication that made such feats possible. These achievements were a testament to the band and its fan base, rather than a strategic move by Big Hit Entertainment.
Big Hit’s normalization of different versions and pricing
Realize that offering different versions and lowering prices is an established practice.
Big Hit Entertainment has been known to offer different versions of their songs since 2013. This practice is not unique to BTS and is often seen in the music industry, especially among Western artists. Different versions help cater to diverse market segments and create unique listening experiences. This strategic approach is effective in maintaining fan engagement and sales.
Take, for example, songs like “Make It Right,” “Mic Drop,” “Spring Day,” and “I Need U.” Big Hit has consistently provided different versions of these tracks, catering to specific markets and fan preferences. While some may see this as a form of bundling, it is important to note that these versions are still focused on selling music and do not involve the bundling of merchandise like T-shirts or blankets, which is more common in other genres.
Why differentiation is sound business strategy
Lowering prices and offering different versions are smart marketing tactics.
Offering different versions and lowering prices are strategic business decisions. These practices allow fans to have more choices, ensuring their satisfaction and loyalty. Fans who are willing to pay a premium for a unique listening experience are met with these options, while those looking for more affordable alternatives can choose the lower-priced versions.
According to industry experts, the combination of both standardized pricing and variable versions creates a dynamic pricing model that appeals to a broader spectrum of the fan base. This model not only ensures a steady stream of revenue but also helps in maintaining a loyal fan community.
Challenging misconceptions about bundling
Challenging the bundling allegations with facts.
Another common misconception revolves around the bundling of merchandise with music. While some Western or K-pop artists are known to bundle music with merchandise, Big Hit Entertainment has consistently avoided this practice with BTS. Fans are offered songs at competitive prices, which is a far cry from the more common model where merchandise is bundled at a higher cost.
BTS concerts and merchandise are sold separately, ensuring that fans have a clear choice between music and merchandise. This transparency helps in maintaining the integrity of the fan experience and avoids any perception of forced sales or unnecessary purchases.
It is important to recognize that the music industry, both in the West and in K-pop, is complex and multifaceted. While some may see practices like bundling as a way to maximize profits, others use strategies like offering different versions and lowering prices to engage fans and provide them with a better experience.
In conclusion, Big Hit Entertainment’s approach to pricing and marketing is a testament to their business acumen and understanding of the fan market. By providing different versions and offering competitive pricing, they continue to thrive in a highly competitive industry, all while maintaining the loyalty and support of their fan base, the Army.