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Just days after launching an audit into subsidiary label ADOR and asking its CEO, Min Hee-jin, to exit, the Korean entertainment giant says it will report the executive to police.
The announcement came ahead of Min holding an emotional press conference in Seoul, where she refuted allegations of usurping ADOR girl group NewJeans‘ management, shared conversations she had with the group’s members and addressed other rumors as the Billboard 200–topping girl group prepares to launch its new single, “Bubble Gum.”
On Thursday (April 25) local time in Korea, HYBE shared the following statement with the media as an update to its audit regarding ADOR, CEO Min and other executives at the label:
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On April 25 KST, HYBE announced that the company will report CEO Min Hee-Jin of its subsidiary label ADOR to police for a breach of trust and other related allegations today.
HYBE secured substantial evidence to prove that Min deliberately led the plan to take over management control of the subsidiary, through the audit process. The evidence included detailed discussions that Min has ordered the ADOR management to find ways to pressure HYBE into ultimately selling ADOR’s shares. One of the audited parties submitted information assets to seize the management of ADOR and to attempt to contact external investors. The auditee also admitted to creating the documents to attack HYBE.
In the meantime, HYBE will continue to provide attentive mental and emotional care to the company’s artist NewJeans and best support for their upcoming comeback. The company will meet legal representatives of the respective members as soon as possible to discuss the plan to protect the act.
As previously reported, Min earned an 18% stake in ADOR in late 2023, when HYBE moved from full ownership of the label to 80%, with the additiona 2% owned by other company executives.
Following Min Hee-jin and ADOR going on the offensive with interviews and multiple statements to various Korean media alleging that HYBE has been exploiting ADOR and allowing NewJeans’ concept to be plagiarized, the K-pop industry veteran held a press conference with her lawyers that lasted more than two hours on Friday.
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According to the Korea JoongAng Daily‘s minute-by-minute report, Min arrived for the 3 p.m. press conference casually dressed in a baseball cap and simple T-shirt to be greeted by a slew of photographers — so many that at one point, the executive said she wouldn’t be able to speak if the camera flashes continued. Throughout the two-hour event, Min proclaimed her innocence, shared her disagreements with HYBE’s leadership, rebutted their conclusion that she wanted to seize NewJeans’ management and tried to shift focus back to her original internal complaint regarding plagiarism. Under Min’s leadership, ADOR previously claimed that HYBE’s newest act, the five-member girl group ILLIT formed under another subsidiary, BELIFT LAB, is copying NewJeans.
While weaving through stories with her lawyers alongside her, an at-times sobbing Min also addressed rumors regarding current and past HYBE artists including BTS, GFRIEND, LE SSERAFIM and more.
During the first half hour of the presentation, Min shared text message chats she claims she had with HYBE founder/chairman Bang Si-hyuk and HYBE CEO Park Ji-won. These alleged texts, according to Min, show Bang’s interest in buying Source Music, where Min previously worked, to launch a girl group. She also revealed that she recruited NewJeans’ eldest member, Minji, from Source’s trainee pool for ADOR. Min further claimed that HYBE’s debuting LE SSERAFIM under the Source label led to NewJeans being cast aside and created internal issues.
In a 2022 Billboard interview shortly after NewJeans’ debut, Min described her move away from Source Music by noting that “there would have been a number of different challenges involved” at the time and that she instead focused on creating “an independent label,” which became ADOR. “ADOR is a label that started with guaranteed autonomy, so it has no ties with HYBE’s management,” Min said. “They actually didn’t have any knowledge about anything we were going to release up until the first music video was released.” In the same interview, a question regarding Minji’s time as a trainee under Source Music was never addressed by press time.
After the first hour of the press conference, Min added claims that her contract terms with HYBE were unfair, though her lawyer said the details of the contract are confidential. Min also alleged that HYBE spun her contacting a law firm as external consulting, creating the current situation. Min pointed to multiple misunderstandings, including those that arose from jokes between her executive team, and added that HYBE still owes her money.
Through tears, Min revealed more text messages claiming that a NewJeans member’s mother called her to encourage her to speak out. During the Q&A with the press in attendance, Min contended that NewJeans members Hanni and Haerin have specifically reached out to her in support.
Separately, two NewJeans members have made public appearances amid the K-pop power struggle. Minji attended a Chanel pop-up store opening on Tuesday (April 23) in Seoul, while Danielle attended different fashion events on the Tuesday and Wednesday, though neither has made public statements on the matter.
Throughout the press conference, Min also touched on BTS (refuting an online rumor that she claimed the Billboard chart-toppers had copied her ideas), GFRIEND (saying she had nothing to do with the group’s abrupt 2021 disbandment soon after her formal start at HYBE) and took several shots at the teams behind ILLIT by sharing how the members are innocent but “it’s the adults that have sinned…copied all the formulas that we had with NewJeans,” from the concept to fashion collaborations, as reported by the Korea JoongAng Daily.
Just as HYBE did in its statement, Min ended her press conference by re-focusing attention on NewJeans. Despite the clash, the K-pop group’s upcoming music video for “Bubble Gum” is still set to premiere on Friday (April 26) via the HYBE Labels YouTube channel.
While HYBE has successfully expanded into an entertainment powerhouse built around its multi-label structure, the Korean corporation says it has investigated one of its crown jewel agencies, ADOR, the home of chart-topping girl group NewJeans.
Since its launch in late 2021, ADOR (an acronym for the phrase All Doors One Room) has been led by Min Hee-jin, a veteran creative in the K-pop industry who famously helped develop the scene’s penchant for artistic concepts and craft era-defining K-pop acts like Girls’ Generation, SHINee, f(x), EXO and Red Velvet during her tenure at SM Entertainment. After Min’s exit from SM, she joined then–Big Hit Entertainment in 2019 as chief brand officer and helmed the company’s rebrand into HYBE. During the 2021 rebrand reveal, HYBE announced Min as CEO of a new label, ADOR, with plans to debut the girl group that would become NewJeans.
Earlier this month, a report by Korea’s Financial Supervisory Service revealed that Min controlled an 18% stake in ADOR since late last year. HYBE previously had complete control of the label but now boasts 80%, with an additional two percent owned by other company executives. HYBE reportedly invested 16.1 billion won (about $11.7 million) to establish ADOR.
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Less than two years into NewJeans’ history-making debut, HYBE is asking Min to step down from ADOR after an audit of her, the label and its executives.
HYBE confirmed to Billboard that on April 22, the company “invoked the right to audit CEO Min Hee-Jin and top executives of its subsidiary label ADOR.” HYBE said it “called them to summon a shareholder meeting and sent an official letter to ask CEO Min to step down.” HYBE added that it could not provide further information on reason or reasons for the audit or why it is asking Min to step down.
Since news of the audit went public, ADOR and Min Hee-jin have gone on the offensive in the Korean media.
In a series of statements, ADOR claims HYBE’s newest act, the five-member girl group ILLIT under another subsidiary, BELIFT LAB, is copying NewJeans. With HYBE founder and current chairman Bang Si-hyuk involved in ILLIT’s debut album Super Real Me (No. 6 on the World Albums chart after three weeks), ADOR claims both BELIFT LAB and HYBE are complicit in the alleged infringement. ADOR says they raised the copycat issue internally a month ago but did not receive answers, claiming now that HYBE’s attempt to remove her as CEO is a result of bringing up the alleged problem. Min gave an additional interview to Korean outlet Sports Ilgan to fire back at rumors she was trying to break ADOR away from HYBE or seek outside investors to go independent with her 18% stake.
Min Hee-jin has not responded to Billboard‘s request for comment.
Min and ADOR quickly spun NewJeans into a slew of record-setting achievements including a No. 1 album on the Billboard 200 with 2023’s Get Up just a year after the debut, five Hot 100 hits to their name, a well-received live debut in the U.S. at Lollapalooza last year, plus honors like Top Global K-Pop Artist at the 2023 Billboard Music Awards and the first K-pop act honored as Group of the Year for Billboard‘s Women in Music. In 2023, Min earned a spot on Billboard‘s International Power Players and Women in Music executive lists and also collaborated with V of BTS on the overall production of his debut solo album, Layover, which peaked at No. 2 on the Billboard 200 in September.
The K-pop power clash comes as NewJeans prepares for several releases including new singles “Bubble Gum” and “How Sweet,” with the former’s music video scheduled to drop April 26 on the HYBE LABELS YouTube channel. NewJeans is also preparing their first-ever Japanese singles “Supernatural” and “Right Now,” as well as a new album planned for the second half of 2024.
Elsewhere in the HYBE universe, ILLIT’s “Magnetic” is currently at No. 91 on the Hot 100, making it the first debut single from a K-pop act to enter the ranking. New music from HYBE artists like Zico (under HYBE LABELS’ KOZ Entertainment) and SEVENTEEN (PLEDIS Entertainment) are also coming this month. Historically, internal company issues can affect K-pop music or content releases, but no updates have been shared as of press time.
HYBE shares jumped 17.5% to 230,000 won ($170.84) this week following news that the company struck a 10-year partnership with Universal Music Group (UMG) that calls for the label to distribute HYBE’s physical and digital music and put its artists on HYBE’s Weverse social media platform. HYBE America CEO Scooter Braun will oversee all promotional and marketing collaborations between the two companies. After dropping 9.1% over the previous four weeks, the announcement brought the South Korean company’s year-to-date deficit to just 1.5%.
Another K-pop company, SM Entertainment, was one of five music companies to post double-digit stock gains this week, with its shares rising 14% to 87,800 won ($65.22). On Wednesday (March 27), the company announced the appointment of Tak Young-jun to co-CEO alongside existing CEO Jang Cheol-hyuk. SM Entertainment also announced a 1,200-won ($0.89) per-share dividend totaling 28.1 billion won ($20.8 million), an amount equal to the prior year’s dividend.
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The 20-company Billboard Global Music Index rose 1.9% to a record 1,752.24 as 16 stocks posted gains, only three lost ground and one was unchanged. Even with an unusually high number of winners, the float-adjusted index, which gives greater weight to more valuable companies, fell this week because two of the three losers are among the most valuable music companies. Spotify, which has a market capitalization of roughly $50 billion, fell 0.4% to $263.90. Live Nation fell 0.2% to $105.77; its market capitalization is about $24 billion. Two more of the index’s largest companies had gains under 2%: UMG rose 1.6% to 27.88 euros ($30.11) and Warner Music Group (WMG) improved 1.4% to $33.02. Another valuable member of the index, Chinese music streamer Tencent Music Entertainment, rose 2.2% to $11.19.
Hipgnosis Songs Fund shares climbed 13.5% to 69 pence ($0.87) after the company’s board of directors released an internal report on Thursday (March 28) that showed the fund’s investment advisor, Hipgnosis Song Management, “materially” overstated annual revenue and misled investors about the amount of control exercised over the rights in its portfolio. The negative news was welcomed by investors who have taken issue with the company’s accounting practices and portfolio valuation. Hipgnosis shares traded as low as 52.9 pence ($0.67) on March 4 but have rebounded since the company overhauled its board and hired Shot Tower Capital to put together the due diligence report.
CTS Eventim, the German live events promoter and ticketing company, rose 11.1% to 82.45 euros ($89.05) after releasing earnings for the fourth quarter and full-year 2023 on Tuesday (March 26). The company expects “a moderate rise” in total revenue in 2024. Demand is “rising continuously,” CEO Klaus-Peter Schulenberg wrote in the annual report, and the company expects the recent decline in inflation to provide “new, consumption-driven impetus for growth in the future.”
Believe shares rose 7.2% this week to 16.92 euros ($18.27) following the company’s announcement that it will accept a formal offer from WMG by April 7. WMG revealed its interest in Belief on March 7 and said it would be willing to pay at least 17 euros ($18.36) per share. A consortium that includes Believe CEO Denis Ladegaillerie has lined up a large block of shares and is willing to offer 15 euros ($16.20) per share for the remainder. With Believe shares currently trading so close to WMG’s soft bid, investors apparently don’t think the consortium’s original offer is going to suffice.
Stocks were mixed as the trading week was shortened by some exchanges’ closure for Good Friday. In the United States, the Nasdaq composite fell 0.3% to 16,379.46 and the S&P 500 rose 0.4% to 5,254.35. In the United Kingdom, the FTSE 100 rose 0.3% to 7,952.62. South Korea’s KOSPI composite index fell 0.1% to 2,746.63. China’s Shanghai Composite Index dropped 0.2% to 3,041.17.
Universal Music Group (UMG) has expanded its relationship with HYBE to include the exclusive digital and physical distribution rights to the company’s artists for the next 10 years. UMG will also continue to collaborate with HYBE’s Weverse to onboard more UMG signees to the superfan platform.
Scooter Braun, CEO of HYBE America, will take on new responsibilities with the new agreement. The SB Projects founder and former manager to Ariana Grande, Demi Lovato and J Balvin will now oversee all promotional and marketing collaborations between HYBE and UMG in North America.
Notably, this exclusive distribution deal does not include social media sites YouTube, Meta and TikTok, allowing HYBE artists to remain on the short-form video app despite UMG’s current licensing feud with TikTok.
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The announcement builds upon the already established relationship between HYBE and UMG which started in 2017 with a partnership that gave UMG distribution rights to HYBE’s BTS in Japan. In late 2021, HYBE expanded the deal to grant UMG’s Geffen Records distribution rights for BTS in the United States and other regions, moving their U.S. distribution over from Sony Music’s Columbia Records.
Geffen and HYBE also worked together via a joint venture to put together the Netflix and YouTube streaming documentary series The Debut: Dream Academy in which the two music companies work together to form an American girl group using HYBE’s K-pop methodology.
Last year, BMG also moved some of its distribution to Universal Music. In October, the company announced that it would move its physical distribution to UMG’s Commercial Services divison, starting in the second quarter of 2024. It will be fully transitioned by the end of 2024.
“A partnership of this magnitude only comes together when both sides are equally committed to continued growth,” says Bang Si-Hyuk, Chairman of HYBE. “UMG is an iconic music company and together with HYBE, the potential is endless. We are certain that this will expand our global footprint, while benefiting our fans, artists, and labels.”
“Chairman Bang, Scooter Braun and Jiwon Park have brought an innovative and progressive vision to the industry that underscores music’s global power,” adds Lucian Grainge, Chairman and CEO of Universal Music Group. “With the opportunities in engaging the superfan via their groundbreaking Weverse model, we’re thrilled to grow and expand our platform business collaboration as we evolve together leading the music industry’s evolution.”
“This incredible partnership between our companies will ensure mutual benefits and collaborations for the fans, teams, artists, and labels around the world,” says Braun, CEO of HYBE America. “The opportunity created here not only allows us to help our current roster, but grow opportunities for independent artists and labels globally. I’ve known and respected Sir Lucian Grainge for many years, and alongside chairman Bang and HYBE CEO Jiwon Park, we look forward to the undeniable opportunities that will come from this partnership as we together grow the music industry’s future.”
The minds behind acts like BTS and BLACKPINK know a thing or two about minting global stars — and Western companies are starting to take note.
K-pop giant HYBE purchased 868,948 shares of SM Entertainment, the company behind such acts as aespa and NCT 127, for approximately 104.3 billion won ($78 million) after SM founder Lee Soo-man exercised an option to sell the shares, HYBE announced in a Feb. 28 regulatory filing. The purchase concludes a transaction that briefly created a […]
Strong album sales by K-pop groups Seventeen, Tomorrow X Together and New Jeans helped Korean music company HYBE enjoy record revenue of 2.18 trillion won ($1.67 billion), up 22.6%, in 2023, according to the company’s latest earnings report.
HYBE’s album sales from its Korean artists nearly doubled to 43.6 million last year from 22.2 million in 2022, while album sales accounted for 44.6% of total revenue, up from 31.1% the prior year. In Korea, Seventeen led the way with 15.9 million album sales (HYBE’s earnings release cited numbers from Circle Chart, which tracks sales only in Korea). Tomorrow X Together sold 6.5 million albums and NewJeans sold 4.3 million albums.
Streaming revenue got a boost from the company’s acquisition of Atlanta-based hip-hop label Quality Control in February 2023. Revenue from HYBE’s U.S. record labels — Quality Control as well as Big Machine Label Group — grew 70% to 150 billion won ($114.9 million) and accounted for nearly half of HYBE’s streaming revenue growth for the year. Streaming revenue from the company’s Korean labels outside Korea also performed well last year, increasing 102% to 107 billion won ($81.9 million). Within Korea, streaming revenue from those labels increased only 64%, however, to 41 billion won ($31.4 million).
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Concert revenue increased 39.1% to 359.1 billion won ($275 million) and accounted for 16.5% of total revenue, up from 14.5% in 2022. Much of that was due to volume, as HYBE had 125 concerts from seven touring artists in 2023 compared to 78 concerts from four touring artists in 2022.
Most other revenue sources declined year-over-year. Ads and appearances fell 12.3% to 141.9 billion won ($109 million). Merchandise and licensing dropped 17.7% to 325.6 billion won ($249 million). Content sank 15.1% to 289.9 billion won ($222 million). One bright spot was fan clubs, which increased 35.9% to 91.2 billion won ($70 billion).
Company-wide gross profit improved 19.7% to 1 trillion won ($773 million), lower than revenue’s 22.6% growth rate because cost of sales rose 25.2% (gross profit is sales minus cost of sales). Sales, general and administrative expenses increased only 17.7%, however, which helped operating profit improve 24.9% to 295.8 billion won ($227 million). Net profit soared 288% to 186.5 billion won ($143 million).
Korea’s share of HYBE’s revenue increased from 33% in 2022 to 36% in 2023. Japan’s share of revenue also increased, from 28% to 31%. North America fell from 32% to 26% despite the addition of Quality Control.
The Weverse social media platform ended the year with 10.1 million monthly active users (MAUs) in the fourth quarter, down from an all-time high of 10.6 million MAUs in the third quarter but well above the 8.5 million MAUs in the fourth quarter of 2022. Weverse finished the year with 122 artist communities, up from 71 at the end of 2022.
Weverse seems to fly under most of the music industry’s radar despite its strategic importance to its owner, HYBE, the K-pop juggernaut that has successfully leveraged BTS’s success to build an increasingly global, technologically advanced music company.
The social media company’s 10 million monthly active users — 90% of which come from outside South Korea — are few by some standards. TikTok, Instagram and Facebook boast more than 1 billion apiece. But it’s the home turf for artists with some of the most loyal fanbases on the planet. And HYBE is leveraging those acts’ popularity to build a must-visit destination for fans of K-pop and, eventually, other genres, too.
When Jimin, a member of BTS, performed a solo show at Lollapalooza in 2023, it was livestreamed on Weverse. When Jung Kook, another BTS member, hosted an at-home livestream in February, Weverse drew 16 million real-time views. When HYBE group ENHYPEN performed a showcase for its Dark Blood EP, it brought 2.4 million real-time views to the platform.
Artists use Weverse to host live chats with fans to promote new albums and its e-commerce platform to sell merchandise. Last year, Weverse Shop sold over 18 million branded light sticks from K-pop group Seventeen, a handheld device used at the band’s concerts that carries a $64 price tag in the United States.
All of this feels like it’s just the beginning. As K-pop surges in popularity globally, Weverse’s traffic is on the rise. Last year, its average user spent 250 minutes on the platform and visited 10.2 days per month, up from 171 minutes and 9.2 days in 2022. Traffic was up 47% in Africa and 25% in the Middle East. It now has 117 artist communities, including 13 SM Entertainment artists — including Super Junior, Riize and NCT Wish — who joined in September. And as Weverse president Joon Choi explained in an interview with Billboard, the company’s next target is the United States.
Do artists bring their fans to Weverse, or do they tap into the passionate user base you have?
That happens in both ways. Existing Weverse users contributed a lot to the new community of the SM Entertainment artists. But, at the same time, we could clearly see the new user registration spike right after SM artists joined Weverse. So, we’re very happy with this kind of migration. It happened with no hassle.
What about adding artists from the United States to Weverse? Many artists under the HYBE umbrella could be potentially added to the platform to reach new fans.
That’s still in discussion. I think we can come up with more exciting news in the near future.
Weverse has an office in Los Angeles [in Santa Monica]. What are you doing to build Weverse and build the brand in the United States?
The first thing is we are aggressively hiring people who would serve the basic functions including commerce functions, as well as artist support. In terms of raising and improving market awareness, I think that’s something we will be more aggressively working on in 2024. So, as we gain the momentum from new artists and North American artists joining and creating communities on Weverse in America, we will aggressively work on raising the market awareness this year.
Fandom is a word that has become more commonplace as K-pop has grown more popular. I think it’s also a tough word to define properly. How do you define fandom?
I think there are multiple segments — or I would say cohorts — among users of our services. Starting from light listeners, and then we would have more active listeners, we would probably consider them being monthly subscribers to Spotify or Apple, they will be probably the more active listener. And then on top of that there must be a cohort that is more engaged. And those will be probably concertgoers or those people who actively purchase albums of these particular artists. From that particular cohort or user segment, we will probably call them fans. As their engagement level goes up, and they become more active in their fan activities, they will be considered the most dedicated or enthusiastic fans. When you think about any business, you think about the framework of the user acquisition funnel from the very top to the bottom. When it goes to the very bottom, the core of the users, there are users or fans who are ready to purchase whatever the artist is offering. So, from the very bottom to the top, Weverse climbs up to the light users.
What specifically does Weverse do to help serve artists’ superfans better than other social platforms or a streaming platform like Spotify?
Before Weverse, the superfan experience was scattered here and there. You buy merch here, you go to the concert, and you get together in some places. Those experiences were all scattered around. But I think Weverse was the first service to get everything together in the best, [most] convenient way. Number two would be global. To go global, we really value the importance of translation. So, we provide real-time translation in 15 languages.
How does how does Weverse make money? Is it advertising? Is it taking a percentage of sales?
When it comes to advertising, we don’t have it yet, but we are working on it. So, we’re going to launch our advertising service this year. And before that, basically we get a revenue share from album sales, merch sales or any kind of digital value provided to the fans.
I’ve noticed a lot of merchandise for sale. How do you fulfill those orders? Do you have partners in different countries to help?
When it comes to a commerce system, we built everything in-house except for the fulfillment side. Obviously, we have international fulfillment partners. We have warehouses in Korea, Japan and the U.S. — in Carson, south of L.A. So, we get orders from more than 200 countries around the world. We ship everywhere.
You sell CDs, correct, and digital downloads?
Correct.
Do fans in Korea still buy CDs and download albums and tracks in high numbers?
They do both, obviously. Physical albums still do very high volume. And on top of that, Weverse also tries to provide digital/physical experiences together. That’s the reason why we launched Weverse Album last year, which is basically an album without a CD. The album comes with the QR code, then users can download the original high-quality music source and enjoy within Weverse.
What’s more popular in Korea, CDs or vinyl?
CDs. Vinyl is not as popular as in the U.S.
You launched Weverse by Fans, which allows users to customize merchandise. Can you tell me how many artists are using that and what the early results have been?
Currently, Weverse by Fans is in the beta phase. As of now, we have eight Korean artists who are using the Weverse by Fans: TOMORROW X TOGETHER, ENHYPEN, Le Sserafim, NewJeans, BOYNEXTDOOR, XIA, Hwang Min Hyun and Baekho.
Weverse does live streaming, whether it’s live performance or chats with artists. How important is that to Weverse?
Weverse Live is highly important to us. Weverse Live offers many different layers that I would say are different types of livestreaming. With the first one, we might have some special arrangement celebrating or marking an album’s release or album showcase. So, Weverse Live can be used for that. And there can be more instant or casual livestreaming, using the Weverse Live as well. The Lollapalooza performance that BTS member Jimin did last year, that was on Weverse Live as well. Weverse Live offers many different types of livestreaming starting from very large-scale concert streaming to a very casual or instant livestreaming done by individual artists.
I would like to add the three reasons why Weverse Live is of great value and importance to Weverse. First, after we release the service, Weverse Live, the users’ duration [of visit] and also their likelihood of revisiting Weverse have all gone up. So, the retention rate has significantly improved thanks to Weverse Live. And the second reason is that users are very satisfied with the quality of livestreaming services that we offer. They often give us feedback that compared to other major livestreaming services they are highly satisfied with the quality of livestreams that we provide. And the third reason is that Weverse Live has been integrated with live commerce, Weverse Commerce. When an artist or a label decides to do so, we can also turn on Weverse Commerce. That has really helped boost sales.
What might somebody sell with Weverse Commerce? A new album release?
Yes, our albums have been the most frequently sold items using the live commerce feature. Artists and labels prefer selling albums. That was the main item that was sold on live commerce. But, as I mentioned earlier, artists want to add the Weverse by Fans feature as part of the live commerce. So that’s something that we’re working on right now.
Since HYBE owns Weverse, it also owns a lot of data about its fans. How does HYBE leverage that data for either insights or marketing?
As you know, HYBE is a multi-label system. Underneath the multi-label system, each label is actively leveraging the fandom data coming from each community. However, what you need to understand is that within Weverse, there are many artists that are not HYBE artists, right? So, each label is working like a silo — they have access and they leverage the data only within their own community. So that’s what I want to clarify first.
As you know, Weverse is a platform and the neutrality of data and our service’s neutrality has been emphasized from the very beginning. From the early days of Weverse, that was something that we always have emphasized. Maybe because we have emphasized that importance, more than 90% of artists that have joined Weverse are not HYBE artists.
Could you give me insight into the size of the company, where your employees are, where you have offices? How could you describe the size of your footprint?
When we first started Weverse, we started with 50 to 60 people. But as I mentioned earlier, we went through a very compact, rapid growth within the last three or four years. So now we have about 370 people in Korea. So, in total around the world in three headquarters in Pangyo [South Korea], here where I am in Tokyo and Santa Monica, we have a total of about 450 employees. More than half of them are engineering people. I think it’s very hard to find any music company that has this many engineering people in-house. So, I think that was the biggest challenge we’ve been going through and also it has been very successful so far.
Do you expect to grow in 2024?
Yes. I’m very sure. Because, I mean, it has been [an] investment in advance because Weverse has massive traffic and a global scale. That requires a lot of work under the hood, way more than the surface features you can see from the web or app. There are a lot of things underneath that. So, it has been a very heavy lift, and that requires a lot of technological investment and investment.
This interview has been edited for clarity and brevity.
Music stocks mirrored the poor start to 2024 seen in markets around the world, but K-pop giant HYBE bucked the trend with a 7.9% gain to 252,000 won ($191.67) this week. HYBE made the news multiple times during a relatively slow, holiday-shortened week — though none of it was the type of financial news that […]
The Billboard Global Music Index — a diverse collection of 20 publicly traded music companies — finished 2023 up 31.3% as Spotify’s share price alone climbed 138% thanks to cost-cutting and focus on margins. Spotify is the single-largest component of the float-adjusted index and has one of the largest market capitalizations of any music company.
The music index was outperformed by the tech-heavy Nasdaq composite, which gained 43.4% with the help of triple-digit gains from chipmaker Nvidia Corp (+239%) and Meta Platforms (+194%). But the Billboard Global Music Index exceeded some other major indexes: the S&P 500 gained 24.2%, South Korea’s KOSPI composite index grew 18.7% and the FTSE 100 improved 3.8%.
Other than Spotify, a handful of major companies had double-digit gains in 2023 that drove the index’s improvement. Universal Music Group finished the year up 14.7%. Concert promoter Live Nation rode a string of record-setting quarters to a 34.2% gain. HYBE, the increasingly diversified K-pop company, rose 34.6%. SM Entertainment, in which HYBE acquired a minority stake in March, gained 20.1%.
A handful of smaller companies also finished the year with big gains. LiveOne gained 117.4%. Reservoir Media improved 19.4%. Chinese music streamer Cloud Music improved 15.8%.
The biggest loser on the Billboard Global Music Index in 2023 was radio broadcaster iHeartMedia, which fell 56.4%. Abu Dhabi-based music streamer Anghami finished 2023 down 34.8%. After a series of large fluctuations in recent months, Anghami ended the year 69% below its high mark for 2023. Hipgnosis Songs Fund, currently undergoing a strategic review after shareholders voted against continuation in October, finished the year down 16.6%.
Sphere Entertainment Co., which split from MSG Entertainment’s live entertainment business back in April, ended 2023 down 24.4%. Most of that decline came before the company opened its flagship venue, Sphere, in Las Vegas on September 29, however. Since U2 opened the venue to widespread acclaim and earned Sphere global media coverage, the stock dropped only 8.5%.
For the week, the index rose 1.1% to 1,534.07. Fourteen of the index’s 20 stocks posted gains this week, four dropped in price and one was unchanged.
LiveOne shares rose 15.7% to $1.40 after the company announced on Friday (Dec. 29) it added 63,000 new paid memberships in December and surpassed 3.5 million total memberships, an increase of 29% year over year. iHeartMedia shares climbed 14.6% to $2.67. Anghami continued its ping-pong trajectory by finishing the week up 16.9%.
