Psy’s Gangnam style – Viral Branded Epidemic
When the President of the United States jokes about being able to do your silly horse dance and you are getting photo opportunities with Ban kin Moon, the UN Secretary General. You are on the biggest television talk shows in America. And your American TV debut is on the Ellen DeGeneres show, teaching Britney Spears and moms across America your Gangnam style dance. Only one man can claim all this success, 34 year old, Korean K-pop Superstar PSY.
Let’s start at the beginning…First off what the hell is Gangnam anyway? Gangnam as it turns out is a little Sandton, a posh neighborhood in South Korea’s, Capital city, Seoul. And what is the song about, its actually fun dance song that pokes fun of the posh lifestyle of the rich who live in Gangnam.
Who is this Psy? – Psy pronounced “sigh” is the K-pop (K: Korean) sensation whose real name is Jae-Sang Park. Psy has been well known in South Korea for more than a decade, he recently got a spot on one of the Korean TV stations by going into their offices and doing a crazy dance in their corridors.
Why we should care about this South Korean k-pop star – Not only was Psy a global news and entertainment story, he proved that the one hit wonder can be we multimillion dollar business in 2012.
Income streams for Psy – maybe we should say Economic impact, it sounds more appropriate given the scale of the numbers involved. Rocket Boom magazine sites the earnings for Gangnam style to have reached $13-15 Million over the last 4 months alone. Yep that’s an estimated R110 Million!
As a YouTube partner PSY is expected to earn anything from $2.50 – $5.00 per 1000 views on his YouTube channel. So far the video has been watched by more than 670 Million viewers. Do the math at over 670 000 000 unique views divided by 1000 is 670 000 x $2.50 (R26.10) = R17, 487, 000 yep that 17 million big ones from one YouTube video.
Other income streams include appearance fees of $60 000 (R522, 000) per event for product launches, clubs and company events etc. He also got paid $4, 000,000 (R34.8 million) at a rate of $400 000 per advert and has done 10 adverts in the last 3 months. PSY.com released information on Psy’s earnings which indicate that his Concerts tickets sales have netted him an additional $4 million (R34, 8 Million).
So is it a hit? well Gangnam style was No. 1 in 18 countries on ITunes including America, it topped the UK Top 100 and spent 2 weeks at No.1, it also rose to the US Billboard Top 100 singles staying at no.2 for two weeks in a row and it is still maintains its no.1 Digital Billboard spot for the last 11 weeks
Korean Album sales and digital streaming – Digital sales 2.8 & 2.7 million downloads online streams in South Korea sadly all this represents just under $300 000 but he made way more from appearance fees and concerts.
The Brand Power of Psy’s Gangnam style: The experts agree there is no good way to explain the sudden spike in the share price of Korean semiconductor manufacturer DI. Over the last three weeks, the company has rocketed from around $1.80 to $5.12 a share. The shift is baffling, considering that nothing has changed financially for the company. The only plausible explanation: DI’s main shareholder, however, just so happens to be Park Won-ho, Psy’s father.
The Gangnam Style effect on Tourism, Mr. Lee Charm, Head of Korea Tourism Organization, was quoted as saying “If only one percent of them (YouTube viewers) said, “Hey! What is this place, where is it? I’ll go there.” that will be already about four to five million people, and so of course we will use that.”
Awards and Accolades for PSY
1. Gangnam Style picked up the Guinness world record for the most likes back in October for amassing received 4,911,081 ‘likes’ on the video-sharing website YouTube since being released on July 12, 2012.
2. Psy will also be performing alongside Alicia Keys at MTV Europe awards in Frankfurt on the 14th November 2012.
3. Psy took to the podium at Oxford University to discuss his career and global stardom on Wednesday, November 7, an honor which has been bestowed upon the likes of Mother Teresa, Yoko Ono, and Michael Jackson in the past
If you’re tired of the over- emphasis on numbers, I’ve achieved my object quite honestly Gangnam style is a hit and global epidemic to be precise. The point of the emphasis is to put in perspective the sheer opportunity represented by Gangnam style’s success. It’s an opportunity to learn how you take a Korean middleweight brand and k-pop sensation and turn him into a global superstar in 16 weeks.
So what happened here?
The Gangnam Style brand lessons
1. Brand identity
Stick to your guns and always represent your brand -Do your thing? Psy didn’t have a label, when Gangnam Style was created and but he persevered with his sixth album and publicizing his music by any means necessary
2. Collaborate – Use skills and contacts within Networks –
YG (Yang Hyun Suk) is the collaborator in Gangnam style his management company YG Entertainment represents PSY. They paid for the video and manage his business affairs. He’s also the genius behind K-pop Star sort of a Korean Idols
Scooter Braun The man behind Bieber: Psy’s Gangnam style was already a massive hit at almost 15 million hits on YouTube, when he arrived in the US to seal a deal with the man behind Justin Bieber, Scooter Braun (@ScooterBraun). The 30 year old School Boy records CEO catapulted Gangnam style from South Korean sensation to US and global superstar by helping him ratchet up appearances on the biggest TV shows in the US. Gangnam style’s YouTube video wen t from 15 – 300 million in a matter of 2-3 weeks after Psy signed with Scooter Braun This dude was marketing executive for So So Def at 20years old.
3. You don’t need TV or Radio – You need media integration
YouTube put Gangnam style on the Asian map but to create the global phenomenon you need a host of media to work in tandem to support the growth of the branded product or service.
4. Ride that wave like there is no tomorrow
There is no guarantee that Psy can repeat the worldwide acclaim that came with Gangnam style ever again so it’s important to take advantage of the popularity wave and earn the most revenue possible from this window of opportunity.
In Reality …I’m not suggesting that this feat will be repeated again quite honestly this feat is just mind blowing if you consider that there are 7 billion people on the planet it means that almost 10% of the entire human population have seen this video. What I am saying is that it’s a window into the entertainment branding of the future, musicians and content producers should take note and be ready for the consumer of the future.
•Note 1: In the 5 days it took to write this article, Gangnam Style YouTube video leaped from 670 million views to 729 Million views.
•Note 2: We can only speculate on the true earnings that will arise from Gangnam Style’s success, but we endeavored to deliver the most up to date estimations. I even tried to get Schoolboy records to verify the number but it seems that it’s a new stream they want to leave.