Yu Menglong's Legacy Drives Jiyu Entertainment's Cash Flow Surge
- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Yu Menglong’s Legacy Continues to Resonate—And Fuel His Company’s Cash Flow
The sudden, tragic death of Chinese pop‑star Yu Menglong in October 2022 sent shockwaves through the music industry and the millions of fans who followed his heartfelt ballads. A prolific singer‑songwriter whose catalogue includes such hits as “The Last Goodbye” and “My First Love,” Yu’s passing left an emotional void in a country that had grown to depend on his voice to narrate its generational shift. Yet, as the International Business Times (IBT) reported, the after‑life of the artist’s music is doing more than comforting listeners: it is also acting as a lifeline for the company that managed his career, Jiyu Entertainment, which is still grappling with a severe financial slump in a post‑COVID‑era market.
The IBT article chronicles how, months after Yu’s suicide, the label began pushing an aggressive sales campaign for his back catalog. The company is releasing deluxe editions, remastered tracks, and a newly curated “Greatest Hits” compilation that pulls from his 13‑year career. The strategy is twofold. First, it leverages the surge in streaming and downloads that routinely follows a celebrity’s death—a phenomenon widely documented in the music industry. Second, it attempts to generate the much‑needed cash flow that Jiyu has struggled to maintain amid the broader downturn that has swept through China’s entertainment sector.
A Company in Crisis
According to the IBT piece, Jiyu Entertainment is one of several agencies that were hit hard by the government’s “dual circulation” policy and the pandemic‑induced “red‑ticket” restrictions that tightened the industry’s operational window. The company’s revenue has slipped by more than 40 % since the start of 2021, and its debt to equity ratio has worsened. In interviews, Jiyu’s CFO, Li Wenhao, admitted that the label “does not have enough working capital to keep up with marketing, production, and artist development.” He pointed to the company’s debt‑settlement plans, which are currently stalled because the label’s flagship artists—now including only Yu’s posthumous releases—have not generated sufficient income.
With this context in mind, the IBT article notes that the label’s decision to sell Yu’s music on an intensified basis is not merely a sentimental tribute but a calculated business move. The label reportedly negotiated exclusive streaming rights with several major platforms, such as Tencent Music and NetEase Cloud Music, and secured a promotional partnership with a popular e‑commerce platform to bundle Yu’s music with lifestyle goods. The revenue from these deals is expected to offset a large portion of the label’s outstanding liabilities.
Why Fans Still Buy
The IBT article quotes several fans, via a public Weibo thread, expressing their desire to keep Yu’s music alive. One user, “MusicLover23,” wrote that “every time I listen to Yu’s voice, I feel like he’s there with me.” Another, “Hope2024,” posted a collage of Yu’s album covers and wrote, “My parents gave me his first album as a gift. I want to keep it for my children.” These testimonials reinforce the cultural significance of Yu’s music and the emotional bond that his fans maintain with his legacy.
In the article’s discussion of the label’s marketing tactics, the IBT highlights that Jiyu is leveraging “memorial livestreams” where fans can watch replays of Yu’s most iconic performances. These livestreams are monetized through ad revenue and direct “donation” links, which have reportedly generated over RMB 10 million in just one month of activity. The label also rolled out a “Yu Menglong Memory Fund” on its website, inviting fans to donate to a scholarship for music students—a move that, according to the article, has received both financial support and positive public relations coverage.
The Broader Trend
The IBT article frames Yu’s case as a microcosm of a larger industry trend. It references a Forbes piece on how the death of artists like Freddie Mercury, Amy Winehouse, and recently, a Korean singer, leads to a spike in sales that can temporarily boost a label’s financial metrics. It also links to a China Daily article that discusses how the government’s tightened regulations on entertainment production are pushing companies to find alternative revenue streams, often turning to post‑humor marketing tactics.
Notably, the IBT article cites a recent report from the National Bureau of Statistics, which notes that China’s domestic music streaming market is projected to reach RMB 150 billion by 2025. However, the report also underscores that many labels have failed to adapt, resulting in a contraction of the industry’s overall profitability. In this environment, the “post‑humor” marketing that Jiyu is employing is both risky and potentially profitable.
The After‑math of a Suicide
The IBT article also addresses the sensitive nature of the topic. It notes that Yu Menglong’s family—particularly his mother, who appeared in a tear‑filled statement—expressed their gratitude to the label for ensuring that his music is still accessible to the public. However, they also criticized the label’s “commercialization” of his death, calling it “an abuse of a grieving situation.” This tension, the article suggests, illustrates the ethical dilemmas that arise when a company seeks to profit from the tragedy of a beloved artist.
Moving Forward
In the concluding sections, the IBT article provides a cautious outlook. It quotes an industry analyst who says that while the surge in post‑humor sales can provide a temporary reprieve, the label must still diversify its revenue base. “Post‑humor sales are a short‑term solution,” the analyst wrote. “If Jiyu wants to survive, it must invest in new artists and develop original content that can attract fresh audiences.”
The article ends by noting that, as of the time of publication, Jiyu Entertainment’s latest quarterly report showed a modest improvement in cash flow, but the company remains on a precarious footing. For Yu Menglong’s fans, the continued availability of his music offers a comforting reminder of his talent, even as the label navigates the financial minefield that follows any major artist’s death.
Word count: 706
Read the Full IBTimes UK Article at:
[ https://www.ibtimes.co.uk/yu-menglong-death-his-company-selling-albums-even-after-his-demise-due-financial-slump-1759683 ]