Exploring the Business Models of Artist Management Companies

Revenue Streams, Client Acquisition, and Value Creation in the Modern Entertainment Industry

Abstract

Artist management companies play a pivotal role in the modern entertainment industry by guiding and developing talent in an increasingly complex, globalized market. This research paper explores the business models of artist management companies with a focus on how they generate revenue, acquire and retain clients, and create long-term value. The evolution of artist management is traced from its traditional forms to the digitally transformed landscape of today. Core management models – including commission-based agreements, hybrid retainer models, full-service firms, and boutique agencies – are examined in terms of structure and viability. Key revenue streams such as live touring, merchandise, endorsements, intellectual property (IP) rights, and vertically integrated ventures (including digital platforms) are analyzed to understand how management firms capitalize on diverse income sources. Strategies for client acquisition are discussed, highlighting talent discovery in the social media age, branding and image development, contract management, and artist retention through career development. The paper also delves into value creation approaches like long-term brand building, global market expansion, and cross-media integration that management companies employ to enhance an artist’s career. Challenges and criticisms in the industry – from exploitation concerns and legal disputes to the rise of self-managed artists – are addressed to provide a balanced view. A case study on HYBE Corporation (formerly Big Hit Entertainment) illustrates a modern, global artist management model, showcasing HYBE’s business structure, innovative 360-degree strategies, and global expansion efforts. Keywords: artist management, music industry, talent management, business model, revenue streams, entertainment industry, HYBE, client acquisition, artist branding, digital transformation.