A Study on Idol Incubation Business Models in China, Japan, and South Korea: A Multi-Case Comparative Analysis from the Value Chain Perspective

Abstract

As an essential component of the cultural and creative industries, the idol industry has undergone an evolution from the traditional star system to systematic industrialization. On the basis of value chain theory and symbolic production theory, we have constructed a dual “value symbol” analysis framework. We studied several cases and compared SM Entertainment (Korean), Johnny’s (now STARTO ENTERTAINMENT, Japan) and Yuehua Entertainment (China). The research shows that the idol creation modes in these three countries can be divided into three value chains: the global industrial value chain in Korea, the closed cultivation value chain in Japan and the platform agile value chain in China. There are great differences between these three models in value chain structure, control of important stages and how to make money: the Korean model emphasizes standardized production and global distribution. The Japanese model relies on managing the relationship with fans and deeply developing emotional value as a barrier; The China model relies heavily on external platforms to make real-time money from traffic. Using visual maps of financial data and value chain, we show the advantages and disadvantages of each model. This provides a theoretical basis and practical path for the transformation of China’s idol industry, from the short mode of “traffic monetization” to the long mode of “intellectual property cultivation and derivatives”.