K-pop as an alternative investment: 5 things to know

In recent years K-Pop has become one of the most popular music genres, with K-pop idols and groups conquering the charts around the world and now we have made it possible to invest in it.

ANote Music is offering you the chance of investing in this promising music genre through the listing of the catalogue of Andreas Öberg, a music catalogue including royalties interests by one of the most famous and renewed songwriters of the Asian music scene. When deciding to invest in this opportunity from the Swedish king of K-pop, you’ll get access to royalties generated by a selection of songs he has written or produced for some of the biggest names in the K-pop and J-pop music scene, such as EXO, Red Velvet, NCT DREAM, TAEYEON, SHINee, SUPER JUNIOR, VIXX and Monsta X.

Here are 5 things you may want to know about K-pop in case you want to start doing your research for making your investment decisions: 

1. K-Pop album exports grew by 17.1% in the first half of 2023 reaching $132.93m

According to a recent article by the Korea Times, the K-Pop album exports consolidated their growth trend and reached a new height during the first semester of 2021 (H1 2023), growing by +17.1% year over year and reaching $132.93m in revenues. By looking at the figures provided by Korea Customs Service, Japan was the biggest market overseas for K-Pop albums, accounting for 36.5% of export sales ($48.5m). The U.S. ($25.5m) and China ($22.6m) were the next biggest markets for sales, with the U.S. notably surpassing China in terms of sales over the past year - China had previously always been the second largest importer after Japan from 2012 to 2022, except for 2020.

2. Korean is the third most popular language among the most streamed songs in U.S.

Did you know that 40% of music listeners in the U.S. listen to music in a non-English language? According to Luminate “2023 Midyear Report”, Korean language-based songs became the third most popular music in the United States following English and Spanish-based music during the first half of 2023. Looking at the data displayed in the report, Korean songs accounted for 0.9 percent of the top 10,000 most streamed music in the U.S. between December 30, 2022, and June 29, 2023. English content was the most popular music with 88.3 percent, followed by Spanish with 7.9 percent.

3. K-pop fans are some of the most supportive across physical formats

Another interesting finding highlighted in the Luminate “2023 Midyear Report” is that, compared to the other major genres, K-pop fans are 69% more likely to purchase vinyl and 46% more likely to purchase CDs than the average U.S. music listener in the next 12 months. Another interesting trend is that one in four K-pop fans purchased a cassette (yes, they are back in high demand!) in the previous 12 months. When it comes to support, K-Pop fans stand out of the crowd, with fans being 67% more likely to purchase music motivated by a desire to "show support" for the artists.

4. K-pop dominates U.S.’s Albums Sales charts (Physical + Digital) in the first half of 2023

When looking at Luminate’s 2023 Midyear U.S. Top Albums chart and focusing on "Top Albums" defined by physical and digital sales exclusively, K-pop dominates the charts, with six out of the top 10 positions occupied by K-pop bands and solo artists. In terms of format, the top CD album sales were almost entirely composed of K-pop releases, with the exception of Taylor Swift. This contrasts strongly with vinyl sales, which didn’t feature any K-pop acts.

5. Japan and Korea were the 2nd and 7th biggest recorded music markets in 2022

The world's largest recorded music markets are listed annually by the International Federation of the Phonographic Industry (IFPI). According to the latest IFPI Global Music Report 2023, Japan and Korea were respectively the 2nd and 7th biggest recorded music markets in 2022. The ranking is based on the retail value (rather than units) that each market generates respectively per year.

By the end of this article you might be quite surprised by the results that one of the most popular and promising music genres in the world has been able to achieve over the past few years. If you are interested in diversifying your portfolio with the royalties generated by a selection of songs written by one of the most renewed and famous K-pop and J-pop songwriters, make sure to check all the financial details about the Andreas Öberg Catalogue, which is now available for investment on the ANote Music platform.

Stay tuned!