Earlier today (August 1), we reported that South Korean music giant HYBE is launching a new strategy for its global business, dubbed HYBE 2.0.
In a letter to shareholders, HYBE explained that the new strategy “includes both business structure and governance transformation” at the company’s operations in various markets, including the US, Latin America, and APAC.
The new strategy also sees HYBE lean further into the lucrative superfan business with its global Weverse platform, by adding new monetization features to the app.
Firstly, starting in Q4 of this year, Weverse will introduce subscription-based memberships for artists.
Additionally, it plans to “fully implement” advertising across “certain areas” of the Weverse app by the end of the year. It noted that this initiative was initially introduced on a “limited basis” earlier this year.
In a letter today, HYBE’s new CEO Jason Jaesang Lee, told the company’s shareholders that “there is growing interest in superfans as a new growth engine in the global music market, including in the US, the home of pop music.”
“Major global music tech companies and large entertainment firms are rapidly introducing new business models targeting superfans.”
Jason Jaesang Lee, in to letter to HYBE shareholders
He added: “Major global music tech companies and large entertainment firms are rapidly introducing new business models targeting superfans.
“This shift represents both a challenge and an opportunity for Weverse, which has successfully grown into a global superfan platform and redefined the paradigm of the music business through an all-in-one fandom platform system.”
“Weverse is now poised to leverage its established growth foundation and business expertise to introduce new services to the market, aiming for next-level growth.”
Content available via HYBE’s Weverse superfan platform includes music videos, teasers, movies, live streams and more.
It also has a merch platform known as Weverse Shop, a music player called Weverse albums, and a K-Pop-centric music publication called Weverse Magazine.
Weverse boasts around 10 million MAUs and services fan communities for 147 artists based in South Korea and internationally.
HYBE told its shareholders today that, since its launch in 2019, Weverse has “focused on growth and expansion, establishing itself as a leading player in the K-pop market”.
In an exclusive interview with MBW in March, Weverse boss Joon Choi revealed that Weverse has “extensive plans to expand [its] artist roster, including both established superstars and promising rising talents across various regions and genres”.
The platform has recently added global artists such as Ariana Grande, YOASOBI, Lauv, and Conan Gray.
HYBE says that the new subscription-based membership model coming to the platform will be a separate service from the existing artist fanclub memberships on the app.
The subscription-based memberships, according to HYBE, will offer “enhanced features for fans to enjoy Weverse in a more convenient environment, along with the integration of certain fanclub features”.
The service will include features such as digital membership cards, bonus jelly (digital currency) credits, ad-free video viewing, and VOD offline storage.
Optional features may also include access to membership-exclusive content and priority participation in events.
“The expansion of the fandom service model marks a turning point for Weverse as a global superfan platform.”
Jason Jaesang Lee, in letter to HYBE shareholders
HYBE says that artists on Weverse “will have the flexibility” to make use of the subscription-based membership service at their preferred time”.
The company also said that it is “preparing additional service models to further solidify the status of [its] superfan platform in the medium- to long-term” and that it will share details about the additional models at a later date.
“The expansion of the fandom service model marks a turning point for Weverse as a global superfan platform,” HYBE’s CEO told the company’s shareholders on Thursday.
“It represents an important milestone towards exploring the next phase of the music industry and advancing as a sustainable business in collaboration with artists from around the world.”
As noted by HYBE’s CEO in the company’s shareholder letter today, the global music business is becoming increasingly interested in the commercial opportunities surrounding superfans.
Spotify, for example, is planning to launch what its CEO Daniel Ek referred to on the company’s earnings call last week as a new ‘deluxe’ tier for around 17$/18$ per month. It’s rumored that it will include ‘superfan clubs’ and HiFi audio.
Elsewhere in the industry, during a recent appearance in Doha, Qatar, Warner Music Group (WMG) CEO Robert Kyncl announced that WMG is building a “superfan app.”
Meanwhile, in January, Universal Music Group Chairman and CEO Sir Lucian Grainge told staff in a new year’s note: “The next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products.”
UMG invested in HYBE’s Weverse in March, alongside an expanded long-term agreement with HYBE providing UMG with exclusive distribution rights for HYBE’s music for the next 10 years.Music Business Worldwide
