Finance Article on the recent debuts of new idol groups and expansion into China, noting that these do not necessarily correlate to higher earnings immediately:
The issue is that the appearance of rookie artistes do not unconditionally mean actual increase in results. A characteristic of an agency is that the expansion of the investment costs put into their rookie artistes’ is likelier to lead to a larger decrease in earnings. For them to demonstrate their influence in the market, usually it would take about 1 year 6 months or 2 years or so, and even then to expect all the costs (incurred up until and with their debut) to be converted into an increase in profits right away is a difficult assertion.
In fact, last year, the artistes who made the most profits amongst the recorded sales of 325.4 billion won for SM, was TVXQ, with the profits from gathering 750,000 people who attended their concerts in Japan being the crucial factor. For rookie artistes’ activities to be able to gather this much people, not only would they need that much time to do so, in reality, whether they would also grow into star-class artistes is unclear.