YG Entertainment announced on March 7 that it is to build “YG LAND” in the U.S., setting a foundation for entering the North American market in full force.
YG will be working with M+D Properties as a joint business partner to build a multicultural complex. M+D Properties is a boutique brokerage firm that successfully built Plaza Mexico, the largest lifestyle shopping center in the western region centering on the Latin culture. YG is fully geared to penetrate the local market.
The complex that YG is involved in is called “The Source,” which is to open in Orange Country in 2015. Here YG will be promoting their brand and its global artists like PSY, BIGBANG and 2NE1 to penetrate the market.
To avoid the limitations reached by other entertainment agencies in entering the North American market, YG will be building a full-scale contents producing infrastructure including recording and training rooms. It is to establish an “All-In-One” system that enables everything from production, concerts, and promotions to various related businesses, making it the base of North American market penetration.
Moreover, YG is planning to maximize the synergy effect by utilizing LED, electronic board and billboards within “The Source” to advertise and promote their contents.
YG recently held a mutual agreement ceremony to confirm the partnership with the firm, and made sure that the two can cooperate continuously in the future ranging in various businesses that utilize the capacities of the two, like F&B franchise joint planning and development, and package tour business that cuts across hotels, shopping and concerts.
Original Korean article: My Daily
Source & translation: YG Life
I hope M+D Properties pays most of the bills as I doubt this will make profit any time soon, if ever. Anyhow, I feel like YG is trying to make business in same manner in US as in Korea without understanding the differences in markets and audience.