HYBE
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HYBE shares benefitted from the company’s dismissal of Min Hee-Jin as CEO of the imprint ADOR, gaining 4.4% in a rare positive week for a stock that has fallen 21.0% in 2024.
Min will continue to produce music for ADOR artist NewJeans, but the label will restructure in order to separate management from production. Turbulence between HYBE and Min dates back to April when HYBE reported Min to the police for breach of trust and other allegations. The company stated that Min “deliberately led the plan to take over management control of the subsidiary” and ordered ADOR’s management to pressure HYBE into selling its shares in the subsidiary. The following month, a court blocked HYBE’s plan to dismiss Min.
The controversy has coincided with a steep decline in HYBE’s share price. HYBE was 230,500 won ($172.33) on April 19, the trading day before HYBE announced it would investigate Min, and had fallen 20.0% to 184,400 won ($137.86) by Friday (Aug. 30). But the HYBE-Min dispute isn’t the only explanation for HYBE’s sluggish stock performance. HYBE’s three main South Korean competitors—SM Entertainment, YG Entertainment and JYP Entertainment—have lost an average of 38.1% this year.
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The 20-company Billboard Global Music index rose 0.2% to 1,832.97, bringing its year-to-date gain to 19.5%. Eleven of the 20 stocks gained this week, while seven lost ground and two were unchanged. Cloud Music, the week’s top music stock, gained 5.2% to 97.70 HKD ($12.53), bringing its year-to-date increase to 8.9%. SiriusXM improved 2.8% to $3.29. Tencent Music Entertainment gained 2.0% to $10.44.
Spotify was effectively unchanged at $342.88 despite Evercore ISI raising its price target on Spotify to $460 from $420. Universal Music Group gained 1.5% to 23.63 euros ($26.14) after Exane BNP Paribas upgraded the stock to “outperform” and a raised its price target to 27.50 euros ($30.42).
While HYBE was among the week’s winners, other K-pop stocks had another off week. JYP Entertainment, purveyor of Stray Kids and TWICE, fell 1.5% to 51,100 won ($38.20). BLACKPINK’s agency YG Entertainment lost 3.8% to 34,150 won ($25.53). And SM Entertainment, home to RIIZE and Vespa, slipped 5.4% to 62,800 won ($46.95).
Stocks were mixed this week as investors await news from the U.S. Federal Reserve that it will cut interest rates in September. In the United States, the Nasdaq fell 0.9% to 17,713.62 and the S&P 500 rose 0.2% to 5,648.40. In the United Kingdom, the FTSE 100 gained 0.6% to 8,376.63. South Korea’s KOSPI composite index dropped 1.0% to 2,674.31. China’s Shanghai Composite Index fell 0.4% to 2,842.21.
Universal Music Group (UMG) reached a strategic agreement with ProRata.ai, a new company that enables generative artificial intelligence platforms to fractionally attribute and compensate content owners. Bill Gross, chairman of technology incubator Idealab Studio — which launched ProRata — will serve as CEO. ProRata’s technology allows generative AI platforms to attribute and share revenues on a per-use basis with content owners while preventing “unreliable content from driving AI answers,” according to a press release. In addition, ProRata is building a consumer AI answer engine set to launch this fall that will feature the company’s attribution technology.
“Current AI answer engines rely on shoplifted, plagiarized content,” Gross, the inventor of the pay-per-click monetization model underlying internet search, said in a statement. “This creates an environment where creators get nothing, and disinformation thrives. ProRata is pro-author, pro-artist and pro-consumer. Our technology allows creators to get credited and compensated while consumers get attributed, accurate answers. This solution will lead to a broader movement across the entire AI industry.”
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In his own statement, UMG chairman/CEO Lucian Grainge said, “We are encouraged to see new entrepreneurial innovation set into motion in the Generative AI space guided by objectives that align with our own vision of how this revolutionary technology can be used ethically and positively while rewarding human creativity. Having reached a strategic agreement to help shape their efforts in the music category, we look forward to exploring all the potential ways UMG can work with ProRata to further advance our common goals and values.”
Along with UMG, ProRata has struck early agreements with media publishers including the Financial Times, The Atlantic and Fortune.
In describing the technology, the release reads: “ProRata’s technology analyzes AI output, measures the value of contributing content and calculates proportional compensation. The company uses a proprietary algorithmic approach to score and determine attribution. This attribution method enables copyright holders to share in the upside of generative AI by being credited and compensated for their material on a per-use basis. Unlike music or video streaming, generative AI pay-per-use requires fractional attribution as responses are generated using multiple content sources.”
ProRata is in “advanced discussions” with additional news publishers, authors, and media and entertainment companies. The company’s leadership team and board of directors include executives who have held senior roles at Microsoft, Google and Meta, as well as Michael Lang, the president of Lang Media Group and one of the founders of Hulu. Early investors include Revolution Ventures, Prime Movers Lab and Mayfield.
Immersive technology, media and entertainment company Cosm raised more than $250 million in funding to drive the growth of its “Shared Reality” venues — described in a press release as an “experience that seamlessly bridges the virtual and physical worlds by merging state-of-the-art visuals with the energy and excitement of the crowd and elevated food and beverage service.” The new funding round includes existing investors Steve Winn and Mirasol Capital and first-time investors Avenue Sports Fund led by Marc Lasry, Dan Gilbert‘s ROCK, Baillie Gifford, and David Blitzer‘s Bolt Ventures. Cosm will use the funds to scale, grow its technology and media business units, and speed up the development of more Cosm venues worldwide. The second Cosm venue is slated to open in Dallas later this year, with a third in Atlanta recently announced. “Cosm venues are a new paradigm in live sports, music, and artistic entertainment,” said Chris Evdaimon, investment manager at Baillie Gifford, in a statement. “The mesmerizing viewing experience guarantees the Cosm customer the best seats in the arena and the best viewing angle at any moment of the live event, at an affordable ticket price.”
HYBE Interactive Media (HYBE IM), the interactive media and games division of the storied K-pop company, raised $80 million in a round led by Makers Fund with participation from IMM Investment and parent company HYBE. The funds will be used to expand the company’s games publishing and development efforts, allowing HYBE IM to invest in more games, introduce them in global markets and bolster the division’s in-house development capabilities. HYBE IM’s previously-released titles include Rhythm Hive and BTS Island: In the SEOM. It’s also signed publishing contracts for Macovill’s OZ Re:write and Flint’s RPG Astra: Knights of Veda.
Believe acquired Doğan Music Company, Turkey’s largest independent record label, four years after purchasing a 60% majority stake in the company in 2020; it acquired the remaining 40% of the company for 38.3 million euros ($41.84 million). The transaction is pending approval by the competition regulator.
The U.K. office of Believe signed a global services deal with electronic music brand fabric. Under the agreement, fabric joins the client base of b:electronic, Believe’s electronic music imprint and part of the company’s label & artist solutions division. B:electronic will provide genre specialist label management, video and audience development, editorial and marketing partnerships internationally, and distribution for both catalog and new releases. Fabric’s labels include fabric Originals, fabric Records and Houndstooth, while a new imprint is slated to launch in the near future.
Beatchain partnered with Indian radio network Radio City India to launch Muzartdisco, a digital platform and app that will allow Indian artists to release and promote their music using Beatchain’s A&R tool and artist services platform. Through the platform, artists can also compete for opportunities including studio sessions; mentoring; collaborations with established artists, writers and producers; radio breakout campaigns, social media shoutouts and other opportunities courtesy of Radio City India; and more. Meanwhile, A&R teams using the platform will be able to find artists using a tailored filtering process that makes it easier to find talent that aligns with their mission and niche. According to a press release, Radio India is the country’s leading radio network, boasting a listenership of more than 69 million across 39 cities.
Sports and entertainment collectibles company Panini America partnered with The Rolling Stones to produce the first fully licensed, career-spanning trading card set for the band. Titled Prizm The Rolling Stones, the set will chronicle the Stones’ 60-year recording and touring history, with additional collections to come.
AEG Presents partnered with Jacobs Entertainment — a developer, owner and operator of gaming and entertainment facilities — on Globe Iron, a new indoor 1,200-capacity venue in Cleveland that was once home to the Globe Iron Works Foundry built in 1853. AEG, which will operate and exclusively book the venue’s programming, already books and operates two other Cleveland venues: the Agora Theatre and the Jacobs Pavilion.
Indie record label The Programm, led by Peter “S.Y.” Pestano, struck a joint venture with LLC4/Capitol Records to break new artists, starting with Mexican-American rapper NHC Murda 60x. The joint venture will be steered by Orlando Wharton, executive vp at Capitol Music Group, president of Priority Records and CEO of LLC4. NHC Murda 60x and other Programm artists will have the potential to be upstreamed under the deal.
Independent entertainment company Unity 7 Entertainment announced a distribution partnership with Forecast Music Group (The Orchard/Sony), which will provide global distribution, marketing and promotional support for Unity 7’s artist roster. The partnership will kick off with the release of hip-hop artist Alantra’s debut single, “Get It,” which is set to drop on Sept. 5.
AI-powered, ethically-trained music generation company Soundful teamed with SoundCloud and Kaskade on an AI songwriting competition that will offer the winner a chance to perform alongside Kaskade and have their winning track completed and released by Kaskade as a featured artist.
HYBE’s net income dropped 86% in the second quarter of 2024 as total revenue improved 3.1% to a quarterly record of 640 billion won ($482 million), the company announced Tuesday (Aug. 6).
The South Korean K-pop giant breaks its financial results into two main categories: segments with direct artist involvement such as recorded music and concerts, and those with indirect-artist involvement such as fan clubs, licensing and merchandise. In the second quarter, indirect revenue streams grew 17.4% to 217 billion won ($163 million). Direct revenue fell 2.9% to 424 billion won ($319 million) as concerts dropped 8.6% to 144 billion won ($108 million) while recorded music improved 1.5% to 250 billion won ($188 million).
Operating profit—total revenue less cost of sales and operating expenses—dropped 37.4% to 51 billion won ($38 million), a smaller decline than experienced by net income because of a sharp drop in non-operating income. Earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of the company’s cash profit from operations, fell 24.6% to 79 billion won ($59 million).
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Results for the first six months of the year were, across the board, a bit worse than a year earlier. Although total revenue topped 1 trillion won ($741 million) for the second consecutive year, that amount was 2.9% lower than a year earlier. First-half operating profit, net income and EBITDA were also lower than the first half of 2023.
HYBE sold fewer albums in the first half of the year but dominated sales charts in South Korea and Japan. Led by Seventeen’s 4.4 million albums sold in the first half of the year, HYBE had 9 of the top 20 artists ranked by album sales in South Korea. Seventeen’s Best Album ’17 is Right Here’ ranked second in Japanese album sales with 423,000 units while its SEVENTEENTH Heaven: 11th Mini Album ranked No. 6 with 242,000 units. In the U.S., Tomorrow X Together’s Minisode 3: TOMORROW ranked No. 2 in CD sales behind Taylor Swift’s The Tortured Poets Department.
Streaming accounted for 35% of recorded music revenue, up from the first half of 2023. In a first-of-its-kind breakdown of the company’s streaming revenue, HYBE revealed that domestic streaming revenue for HYBE’s labels South Korea was 18 billion won ($18 million), less than half the amount from full-year 2023. (It did not provide first-half streaming revenue figures for those labels’ streaming revenue outside of South Korea). HYBE’s U.S. labels—Big Machine Label Group and Quality Control—also had streaming revenue of 61 billion won in the first half.
Weverse, HYBE’s social media platform, had 9.6 million monthly active users, up from 9.2 million in the first quarter and even with the 9.6 million MAUs a year earlier. Beyond traditional social media functions, Weverse also has an e-commerce element, Weverse Shop, and live streams artist chats and concerts. Ariana Grande joined the platform in July, joining HYBE artists such as BTS and ENHYPEN and non-HYBE acts such as BLACKPINK and NCT-127.
This is a transformational time for the company built on the global success of boy band BTS but now expanding into new markets and initiatives. In July, HYBE named Jason Jaesang Lee as its new CEO to lead its growth strategy that was announced on Aug. 1. Dubbed “HYBE 2.0,” the plan reorganizes the company to drive global expansion and focus on tech-driven initiatives. HYBE Music Group APAC combines its record labels in South Korea and Japan. The Scooter Braun-led HYBE America will bring management to its label operations. Social media platform Weverse will launch a subscription membership tier. HYBE is also accelerating its efforts in gaming, AI, audio and voice technology.
K-pop stocks were the hardest hit music stocks on Monday (Aug. 5) as global markets continued Friday’s decline in the U.S. with major selloffs. Four K-pop companies — HYBE, SM Entertainment, JYP Entertainment and YG Entertainment — fell an average of 8.8% on Monday, while a major South Korean stock index, the KOSPI composite index, […]
Last week, HYBE — the Korean label and music company behind BTS, among others — announced that Jason Jaesung Lee would become its new CEO, replacing Jiwon Park, as part of what it dubbed its “HYBE 2.0” strategy. Today (Aug. 1), the company unveiled more specifics as to what that will start to look like.
HYBE says the strategy kicked off at the top of the year, and will see the company lean into its superfandom platform, Weverse, around the world, while also partnering with other companies globally “to adapt to the fast-evolving market landscape,” the company said in a press release.
The priorities the company laid out will reorganize the company — which had previously been structured as Label, Solution and Platform — into a broader Music, Platform and “Tech-driven future growth initiatives” framework. As part of that, the company laid out four new initiatives and several executive-level appointments with new leaders atop its reformed division.
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The first is the formation of HYBE Music Group APAC, which will encompass the company’s labels in Korea and Japan, which will focus on doubling down on the company’s strengths and strategies in that region and exporting them around the globe. The current president of BIGHIT Music, Young Jae Shin, who has helped oversee the success of BTS and Tomorrow X Together, will now take on the role of president of HYBE APAC and lead the Korean and Japanese labels’ global growth.
The second is a doubling-down on what the company calls its “multi-home, multi-genre” strategy in the U.S., Japan and Latin America. That will mean a new label service launched under HYBE America — which is led by Scooter Braun — that will bring in a management element to its current label operations, in a bid to “bring the K-pop methodology to the American pop scene.” As part of that, HYBE America says it signed a new U.S.-based group, KATSEYE, through its continued partnership with Geffen Records. The company also said that its HYBE Latin America division — whose CEO Jonghyun “JH” Kah recently spoke to Billboard about their plans — will ramp up beginning in 2025, while HYBE Japan will continue to roll out new artists as well under newly-appointed chairman Youngmin Kim, who until now had served as general manager of SM Entertainment.
The third is the launch of a subscription membership tier for superfan platform Weverse, which will go live in the fourth quarter of 2024 and be available to all artists who use the platform. That will include ad-free videos, digital membership cards and a private Weverse DM feature, while the main Weverse platform will begin incorporating ads. Weverse president Joon Choi spoke to Billboard two weeks ago (July 19) about the platform’s plans moving forward, as well as the onboarding of Ariana Grande onto the platform, joining many of the Korean artists already in the HYBE stable. (Grande, who cut ties with Braun and HYBE last year, resumed working with them in June.)
Finally, HYBE is planning to “merge content with technology,” which it says will “ensure mid to long-term growth” for the company. That is where HYBE’s investments in gaming, AI, audio and voice technology and integrated online/offline experiences will live moving forward.
“HYBE 2.0 focuses on fostering our future growth businesses centered on music, platform and technology,” newly-announced CEO Lee said in a statement. “HYBE will continue to excel in the music industry, solidify its position as the leading player in the superfan business, and secure long-term growth drivers through tech-driven future growth initiatives.”
In a major leadership and strategic shakeup at the world’s top K-pop company, HYBE promoted Jason Jaesang Lee to be the company’s new chief executive officer on Wednesday (July 24), replacing Jiwon Park, according to a press release.
Lee previously served as president of HYBE America and chief strategy officer, a role which saw him lead HYBE’s 2021 acquisition of Scooter Braun‘s Ithaca Holdings and spearhead the Seoul-based company’s initial public offering in 2020.
In positioning him at the top of the company, HYBE said Lee “is the central figure for the forthcoming ‘HYBE 2.0’ strategy rollout,” a global expansion plan that has been in the works since the start of 2024.
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“Jason is an entertainment industry veteran with vast experience in strategic planning and operations across both domestic and overseas businesses,” the company said in the statement. “Under his new leadership, we are looking forward to advancing as a global entertainment lifestyle platform company.”
More than the home of BTS, HYBE’s budding empire has expanded in the U.S. and Latin American music markets in recent years with the November acquisition of Exile Music, the music division of Spanish-language studio Exile Content, and HYBE America’s acquisition of hip-hop label Quality Control and, before that, the country powerhouse Big Machine Label Group.
HYBE’s revenue-generating engine showed signs of slowing earlier this year when the company reported in May that its first quarter revenue fell to the lowest point in two years, and earnings before interest, taxes, depreciation and amortization (EBITDA) fell to the lowest point since the first quarter of 2021.
Park, who was named CEO in July 2021 when HYBE founder Bang Si-Hyuk transitioned to board chairman, “decided to step down … [and] will continue to contribute to the company’s growth strategy by leveraging his expertise in the intersection of entertainment and technology,” according to the statement.
During Park’s tenure as CEO, HYBE more than doubled its revenue and operating profit and became the first Korean entertainment company ever to generate more than 2 trillion Korean won ($1.4 billion) in revenue.
In a move that highlights her selective engagement with social media, Ariana Grande, who deactivated her Twitter account years ago but remains the seventh-most-followed person on Instagram, is set to join HYBE’s superfan platform, Weverse.
Weverse Company tells Billboard that the chart-topping star will join the platform on Sunday (July 21), adding to a roster that includes BTS, BLACKPINK, JVKE, NCT 127, (G)I-DLE, Lauv, YOASOBI, Conan Gray, AKB48 and thuy. In joining the platform, Grande will have the ability to post messages and content to her own dedicated community, hold livestreams for members, read personalized fan letters, upload exclusive media content, share disappearing messages, and utilize the popular Weverse Shop, which sold more than 18 million pieces of merchandise last year to fans in more than 198 countries.
The announcement marks a significant moment for both Grande and Weverse, opening up a new way for the singer to deepen her connection with fans while showing a commitment to her continued business relationship with HYBE and HYBE America CEO (and Grande’s former manager) Scooter Braun.
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Since opening in June 2019 with Billboard 200 chart-toppers TOMORROW X TOGETHER as its first artist, Weverse now hosts 146 artists from countries including South Korea, Japan and the U.S. Its biggest artist community, for BTS, boasts 26 million members, while the ENHYPEN community has 9.8 million. Today, HYBE reports over 155 million lifetime downloads and an average of 10 million monthly active users across 245 countries and regions, with 90% of its user base now coming from outside Korea. Despite Warner Music Group (WMG) announcing plans for its own superfan app — as well as WMG and Sony investing early in rival superfan platform Fave — Weverse says its start with K-pop artists delivered important insights to entice top Western stars like Grande to join.
“What’s lucky for us has been that K-pop idols are the types of artists that have a very strong core fanbase,” Joon Choi, president of Weverse Company, tells Billboard of the company’s half-decade of growth that now includes investment from Universal Music Group. “As a platform and a business, we had already enjoyed the competitive edge or advantage of being there first and being there early to observe what superfans actually want.”
While artists can use Weverse to access first-party data for content delivery, promotion and to stay connected to international fans, the platform has expanded opportunities in live music with not only event streaming but its Weverse Con Festival and a Weverse by Fans tool through which fans can develop their own merch.
“We were there earlier and we have a long experience of observing the demands of our fans,” Choi adds. “That’s why we were able to create this one-stop fan service that includes merch development, merch selling, communities, videos, live streaming and even magazines…I do see the growth of startups or services that are entering this particular [superfan] market and that’s good. The more competition in the market is actually better for us because being the only player in that particular market sector makes us nervous.”
New competitors or not, Weverse continues to expand; currently, the company boasts a total of 400 employees in South Korea, 60 in Tokyo, and 20 in Santa Monica, Calif. (with the target to grow to 30 this year). And with a major star like Grande, there’s a slew of Arianators that could soon be joining the platform. Still, the executive admits he doesn’t know what to expect from the Eternal Sunshine singer once she officially joins. As he puts it, “It is totally up to the artists.”
Read on for more insights from Joon about Grande’s big move and what lies in store for Weverse’s future.
Weverse is adding new artists all the time, but Ariana Grande is a huge name with a worldwide fanbase. What have the weeks been like leading up to this announcement?
I just traveled a lot; I’ve been a globetrotter. We have offices in Santa Monica and Tokyo, and in each office location our leaders are currently meeting and contacting many artists and labels, so I believe our platform and business are becoming truly international and crossing borders. As we do that, we have opportunities to engage with and work with big artists, but also rising stars, so these opportunities are being created.
In the past, Weverse or artists have held special events or activities to begin their time on the platform. Will Ariana have a welcome party?
My simple answer to that question is that it is totally up to the artists. So, although we do have sessions where we offer guidelines or guidance in terms of how to better utilize the platform to cultivate the superfan culture or fandom, we do not necessarily engage too much [in terms of] planning activities or what’s going on the Weverse platform. I know that this might not be the direct answer that you’re looking for, but we have artists onboarded onto Weverse with a very good understanding of the difference between Weverse and other social media platforms.
What opportunities do you see for Weverse in welcoming Ariana Grade, and what opportunities are now open to Ariana?
Weverse is definitely a distinct platform, different from other social media platforms, so I’m also very curious how it will be utilized by artists like Ariana Grande. It really depends on each artist or label whether they discuss details about how they want to or plan to utilize Weverse. But in this particular case, we don’t know yet — that’s something that I’m closely watching.
But I would like to add that when I look at Weverse from my perspective as the leader of this business, it’s important to have enough resources and big enough clusters of a particular genre, specific country or culture. So, that’s why we’ve been working hard to onboard many artists. During the first half of this year alone, we have onboarded Nightly, thuy, Lauv, Umi, Conan Gray and JVKE. And then we have Ariana Grande. But Gracie Abrams has been very active as well; she’s good. So, when you see Weverse as a platform and in terms of the growth of our platform, it is very important that we have thriving clusters of certain music genres, countries or cultures to generate a network effect as well.
Weverse does a lot of business selling music, albums and merchandise via Weverse Shop, but Ariana isn’t only involved in music: she has R.E.M Beauty and perfumes; she’s in movies and television. Does she give you opportunities to expand into new commerce markets?
I can’t comment on an artist’s existing merchandise lines or albums since there must be agreements or contracts in terms of production and distribution in place. How merchandise is developed and sold through Weverse really varies by each artist. But a feature that we have on Weverse, Weverse by Fans, has been very effective and is gaining a lot of attention from artists because it is based on fan demand. Also, Weverse by Fans doesn’t require a minimum quantity of manufacturing goods for production. So, as soon as there’s enough demand for a certain type of merch, we can immediately produce and sell those.
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On one hand, Ariana Grande is one of the most followed people on Instagram, but she also deactivated her Twitter years ago and takes social media breaks. How were discussions with an artist who might have complex feelings about social media?
That’s a very good question. Actually, when we meet a lot of artists, we tell the artists to actively use other social media because Weverse is a little different. It’s a place where people who love the artist gather. This isn’t our claim — artists have been saying this particular characteristic makes Weverse a very friendly and safer platform for artists to engage with their fans and the public compared to [other] social media…and that’s not just specific to big-name artists. We have been having opportunities to work with rising rookies as well. We don’t really care whether it’s a big-brand artist or not; what’s more important for us is to seek and discover artists interested in cultivating superfan culture, regardless of how famous or how popular they are, to work with us and use Weverse.
Ariana is the seventh-most-followed person in the world on Instagram. Do you worry that adding an artist with such a wide audience could open Weverse up to trolls or those with bad intentions?
Our product features are already equipped and have the advantage of features like filtering, reporting and in-house moderators to prevent and manage ill-intended activities on Weverse’s platform. I do understand the concern that you raised regarding such potential, and I agree with you. However, such circumstances or ill-intended activities occurred for artists already onboarded on Weverse. So, it would not just be for Ariana Grande that such a thing could happen. But I believe we have about four years’ know-how in operating and managing trolls or activities like that. So, we are not too worried, although we are still being very, very cautious about how to manage that.
I’d add that we always tell artists when onboarded to Weverse that the best use case has been using live broadcasts to communicate with fans directly. K-pop artists have been doing so well in terms of using Weverse as a platform for that, and also through the membership, they can have closer, more direct interactions with their fans as well. So, we’ve been telling artists from the inception, from the moment that they are onboarded to Weverse, that these are some of the ways that are historically proven to be very effective to have a very long-term and sustainable fandom relationship.
What is the onboarding process like? Are you personally meeting top artists?
We’re not a service that allows anyone to sign up, [like] on a website like YouTube or other social media. We don’t know when that’s going to happen, maybe in the far future we will switch to such a model. But so far, we have been doing internal research to discover and identify artists who would have a potential benefit or whose fanbase overlaps with the user base of Weverse. These days we are getting a lot of inbound inquiries from artists or other labels themselves. In the past, we used to do a lot of outreach to discover or find more artists, but since last year, as words such as “superfan” and “Weverse” have become more buzzy in the industry and the market, we have been gaining a lot of attention.
It’s not just me but other teams; we call it a B2B team in Korea, but maybe in the United States, it’s called a customer success management team. We have internal resources that frequently discuss and follow up with labels and artists.
I’m personally curious as someone in media, do you ever imagine a day you might expand the type of people beyond musicians?
Definitely. We already have some actors and actresses onboarded, but this question is really good. We’ve thought about it, but the timeline is very important. The ultimate goal of Weverse is to create a superfan not only for human artists. While I believe Weverse is currently working the best for superfans of a person with a thriving fandom, we’ve already seen an interesting case of the virtual idol group in Korea called PLAVE with a significantly high engagement level within their community on Weverse, which is very, very noteworthy. That’s where we saw the potential of expanding this platform not just for human artists but also for virtual artists. However, we also see the possibility of extending this IP to include other types of artists; this is a fun future that we can imagine at the moment. We still have a lot of room for further growth within the music industry so that’s where we have greater focus.
Since you said this was your personal curiosity, I’m giving you my personal opinion and projection on that potential. [Laughs] My biggest question working at Weverse is, “How many people out of the entire human population would have the ‘superfan’ DNA?” That’s kind of the ultimate thing we are looking for. Someone might be a superfan of a certain sport or sports team — there’s always a superfan of something or someone.
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There’s the Weverse Con Festival, Weverse Magazine, there’s exclusive shows to stream. Why is Weverse developing IP beyond the platform? I imagine a HYBE Festival would be well received.
Weverse is a platform, so neutrality is the greatest value that we really emphasize and prioritize, which has been the case since Chairman Bang [Si-Hyuk] originated this platform. From day one, we really valued neutrality as an important value for us, but also in using such a new business model, we believe that we can lead innovation in the music industry. When you look back on the music industry’s history for the last two or three decades, it started by simply selling albums, then the touring business rose, and since 2000, technology has been disrupting the music industry. Now, it’s time for us to seek the answer to what’s next, right? I think Weverse is a platform and a business that has been most actively conducting experiments in order to answer what’s next for the music industry. If our experiments succeed, we can definitely offer benefits to artists all around the world, and that has been the basic philosophical foundation for our business and platform. We’re very, very, very, very serious about it.
Some people here might not like what I’m just about to say, but considering all the other [types of] content — it can be TV shows, movies, video games, everything — we think music itself, just as a piece of content, is the least compensated compared to all the others. So, we really have to think about that from a business perspective. …There is way more around music, right? There is no doubt that music is the core — and that’s why the mission statement of HYBE is, “We believe in music” — and that’s where we started from. [But] to make it a sustainable business, that’s where we can evolve from.
It was fun to see JYP Entertainment founder J.Y. Park perform with Chairman Bang at Weverse Con Festival last month. JYP is one of the last big K-pop agencies not on Weverse. Was this a hint?
We’ve always wanted all the artists from JYP, no doubt! [Laughs] But this time, it was just about the music. But of course, we’ve always wanted JYP — simple!
Removing yourself from work for a second, who or what are you a superfan of?
I’ve been a very big [music] fan since the ’80s: I listened to Casey Kasem with America’s Top 10, I was a Billboard kid. I think about all the famous songs and artists from the ’80s and ’90s — I’m that old guy [Laughs] — and then I had the recent memorable experience with PLAVE. The DJ JoJo [Wright] from KIIS FM actually visited Weverse Con Festival, held a lot of interviews with artists performing, and mentioned that one of the most impressive interviews he had was with PLAVE. From my perspective, from the ’80s and ’90s to virtual artists on the radio, that’s a very interesting journey to see and experience.
Following its acquisition of Exile Music last November, HYBE is expanding its global entertainment empire in Latin America, launching new offices in Mexico City, Miami and Los Angeles and introducing new properties to its Latin-focused operation.
The move includes the introduction of a new label, Docemil Music, and the rebranding of Exile Music as Zarpazo. Another Exile division, Exile podcasts, will be rebranded as Ajá Podcasts.
“Latin music is one of the fastest-growing genres in the global market,” says Jonghyun “JH” Kah, CEO of HYBE Latin America. “Additionally, there are very nimble and smart independent local music companies that aim to change the status quo by developing new acts and really sticking with them.”
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By the same token, adds Kah, the Latin market is unique in the longevity enjoyed by its artists, and older songs have a long shelf life. “We aim to rediscover the soul of Latin sound and make it a global phenomenon by focusing on talent that resonates with different generations and has a defining impact on the music world, not just within the Latin sphere,” he says.
The company’s executive team includes Jeremy Norkin, who co-founded Exile Music and is now serving as HYBE Latin America’s COO. Elsewhere, Docemil will be headquartered in Mexico City and led by GM Fernando Grediaga, who brings over 23 years of industry experience, including stints at EMI Music and Universal Music, among others. Zarpazo, formerly Exile Music, is based in Miami and will be led by Grediaga and Santiago Duque, who formerly worked at Rimas Entertainment and Sony Music. Zarpazo’s roster includes emerging artists Magna and Chicocurlyhead.
HYBE Latin America also includes a boutique touring agency led by Norkin with a diverse roster that includes Quevedo, Cypress Hill, Nach, KHEA and Marc Seguí.
In expanding in Latin America, HYBE is looking to tap into a burgeoning market with no genre borders, says Kah.
“We see a lot of diversity in Latin music, and we are not bound to any particular genre. As K-pop can encompass many different genres of music, I believe Latin music can be more diverse in many ways,” he says. “As music transcends boundaries, our targets cannot be confined to geographical borders. Mexico is the most populous Spanish-speaking country in the world, which is why we are headquartered in CDMX. Nonetheless, the U.S. Hispanic market is just as big or perhaps even bigger than Mexico. We’re also keeping in mind that Latin artists come from all over the world, including the Americas and Europe.”
HYBE, of course, is known for developing mega K-pop stars like BTS via a sophisticated artist identification and development infrastructure. “HYBE always seeks out the best talent, allows them to discover their authentic voice, and connects them with their fans. K-pop’s training system is competitive since we’re trying our best to train well-rounded professional artists,” says Kah. “In our new endeavors, we will scout for talent and provide them with the tools they need to improve. Our goal is to ensure that our artists discover their own unique voices and establish stronger relationships with their fans than ever before.”
That said, Kah adds that HYBE Latin America “won’t just be replicating our practices from Korea, or from the U.S.” Rather, he says, “our system will try to seek the best of both worlds. The Korean approach is highly exclusive, and the initial costs are extremely high. In Latin America, we want to revamp our model, we want to plant seeds and see how they grow. It took K-pop more than a decade to get to where it is. I hope that in 10 years we can confidently say we made the same unique success here.”
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A Seoul court has barred K-pop giant HYBE from dismissing Min Hee-jin as CEO of its ADOR subsidiary label following HYBE’s internal audit and subsequent police report against the executive last month. The decision will keep Min in her role as CEO, by extension allowing her to stay in control of the label’s sole artist, girl group NewJeans.
As Bloomberg cites from local Korean coverage, “The Seoul Central District Court said HYBE’s evidence and rationale were not sufficient to back the company’s case for Min’s dismissal.” Despite HYBE’s 80% stake in ADOR (where Min has an 18% stake, with the last 2% retained by other executives), the company cannot vote to dismiss Min, which it was expected to do at a company shareholder meeting scheduled for Friday (May 31).
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“We urge HYBE to respect the court’s decision,” Min’s attorney said in a statement, per Bloomberg. “If Hybe takes any action to remove Min from her position as CEO, it will be in direct violation of the shareholders’ agreement.” The legal reps shared their hope that Min’s leadership team at ADOR would also stay intact.
In its own statement, HYBE acknowledged the court’s decision and said it would not utilize its voting rights but vowed to “follow up within the framework of the law.” The company noted that the court admitted Min had sought ways to weaken HYBE’s control over ADOR — efforts that could have led to Min independently running ADOR, taking NewJeans out of the HYBE system or pressuring HYBE to sell its shares in the subsidiary label. The company say sit still plans to pursue its breach of trust case after finding “substantial evidence to prove that Min deliberately led the plan to take over management control of the subsidiary.”
In the meantime, the 2023 Billboard Women in Music honoree will be able to continue directing NewJeans following ADOR’s release of two new singles from the group: “How Sweet” and “Bubble Gum.” The group’s debut Japanese single, “Supernatural” — which reportedly reinterprets a ’00s Pharrell single — is set to drop in June.
Despite the court ruling, the ongoing K-pop power struggle is hardly resolved, and in fact has only widened since HYBE’s initial audit in April.
Following HYBE’s request for her to exit her role as ADOR CEO, Min held an emotional two-hour press conference in which she detailed her concerns and struggles with other teams in the HYBE LABELS system. AsThe New York Times‘ Seoul reporter Jin Yu Young noted in her report, Min’s “pushback against HYBE and its founder, Bang Si-Hyuk, has resonated widely in South Korea, where corporate life can be punishingly hierarchal.”
Last week, HYBE label BELIFT LAB announced it had submitted a letter of complaint for obstruction of business and defamation against Min stemming from Min’s claims that BELIFT girl group ILLIT had copied NewJeans music, style and creative concept. The conflict has also involved the parents of NewJeans members, who have voiced worries about Minji, Hanni, Danielle, Haerin and Hyein’s reputation and treatment in a letter.
The court order follows last Friday’s release of new material from NewJeans and fellow HYBE artist RM, both of whom will likely make substantial bows on the Billboard charts next week.