[Exclusive] Will Big Hit Japan fill the BTS void with its new group '&TEAM'?

[비즈한국] The first new group to be launched through the ‘Big Hit Japan Global Debut Project’ is expected to be named ‘&TEAM’. The group is under the Japanese subsidiary Big Hit Japan and is scheduled to debut within this year.

Five members selected through the local broadcaster Mnet’s ‘I-LAND’ last year: K, Nicholas, EJ, Kyungmin, and Taki. They already possess a large fan base. Photo = Big Hit Japan website

HYBE352820 (formerly Big Hit Entertainment)’s Japanese subsidiary, Big Hit Japan, launched the ‘Big Hit Japan Global Debut Project’ early this year to discover artists who will be active on the global stage based in Japan. The first runners of the project are a boy group including K, Nicholas, EJ, Kyungmin, and Taki, who appeared on Mnet’s ‘I-LAND’. Additional members selected through the ongoing audition ‘&AUDITION’ in Japan will also join the group.

According to Bizhankook’s coverage, it is highly likely that the boy group formed through this project will be named ‘&TEAM’. According to KIPRIS, the Korean Intellectual Property Office’s patent information site, Big Hit Entertainment Japan Inc. filed for trademarks under the name ‘&TEAM’ across various classifications this January.

A total of 14 trademarks have been filed under the name ‘&TEAM’. These include Class 03 (cosmetics, etc.), Class 09 (CDs, video recordings, etc.), Class 14 (keychains, precious metals, etc.), Class 16 (graphic prints, publications, etc.), Class 18 (bags, umbrellas, etc.), Class 21 (cleaning tools, kitchen utensils, etc.), Class 24 (textiles, fabric or plastic banners, etc.), Class 25 (clothing, raincoats, etc.), Class 28 (dolls, toy LED light sticks, etc.), Class 30 (coffee, tea, etc.), Class 32 (bottled water, beverages, etc.), Class 35 (CD sales agency, advertising, etc.), Class 41 (singer performance, performance planning, etc.), and Class 43 (restaurant chains, coffee shops, etc.). In addition, they have prepared comprehensively by filing 14 trademarks in the U.S. in preparation for overseas activities.

A total of 14 trademarks were filed with the Korean Intellectual Property Office under the name ‘&TEAM’. A variety of trademarks were filed, ranging from albums and CDs to merchandise such as clothing, dolls, and toy LED light sticks. Photo = Patent information site KIPRIS

These trademarks have only been filed so far, and it will take six months to a year for final registration. A patent attorney specializing in trademarks explained, “These are typical types of trademarks filed by agencies when an idol group debuts. BTS has also registered and used almost every type of trademark, and Tomorrow X Together (TXT), a boy group under the same label, has filed for 53 trademarks. It seems HYBE pays close attention to trademark management.” A HYBE representative was asked to confirm the facts regarding this, but no response was provided.

Meanwhile, HYBE has been focusing on business diversification through corporate governance restructuring earlier this year. Analysis suggests this is a result of the company considering its sustainability by reducing its reliance on BTS, whose military enlistment is approaching. While the proportion of BTS in HYBE’s total revenue decreased from 97% in 2019 to 85% in 2020, there are still voices of concern regarding the company’s heavy reliance on a single group.

On the 2nd of this month, HYBE announced through a public disclosure that its subsidiary, Big Hit America, will acquire 100% of the shares of ‘Ithaca Holdings’, a comprehensive media holding company that manages famous pop stars such as Ariana Grande and Justin Bieber. Furthermore, it completed its governance restructuring by splitting off its label business division to establish a new company, ‘Big Hit Music (tentative name)’.

Under HYBE, there are various labels in the form of subsidiaries, including BTS’s agency ‘Big Hit Entertainment’, Seventeen’s agency ‘Pledis Entertainment’, GFriend’s agency ‘Source Music’, ENHYPEN’s agency ‘BELIFT LAB’, ‘Big Hit Japan’, which discovers and manages artists in Japan, and Zico’s agency ‘KOZ Entertainment’.

There are also predictions that the Big Hit Japan Global Debut Project may accelerate to fill the vacancy left by the primary artist, BTS, after their military enlistment. In an investment prospectus on the 19th, HYBE stated, “To prepare for the risk of artist activity suspension due to military enlistment, illness, accidents, etc., we are continuously expanding the proportion of indirect-participation revenue that does not involve the artist’s direct activities, such as MD and licensing revenue, and video content revenue. To minimize the risk of revenue reduction due to planned absences of major artists such as military enlistment, we are conducting multi-faceted business reviews, such as pre-production of content like albums and videos, and flexible artist management through members available for activities.”

Lee Sun-hwa, a researcher at KB Securities, said, “Expectations for label expansion are rising due to the governance restructuring. If HYBE acquires additional labels in the future, it has created an environment where it can operate them as independent subsidiaries, respecting the independence of each label and the individuality of the artists. Since they have secured sufficient cash through IPOs and other means, we can look forward to additional label acquisitions.”