Okay-pop large HYBE’s superfan platform Weverse is launching a set of latest higher-priced membership tiers for customers on December 1.
Present Weverse subscribers pay round USD $24 per yr for advantages together with unique content material and bulletins from their favourite artists.
In keeping with The Korea Herald, the brand new Weverse launch – dubbed “digital membership” – will upsell followers into new tiers with costs starting from $2 to $4 per 30 days, which is able to provide extra advantages resembling offline entry to music and ad-free video streaming.
There’s, although, a catch for HYBE’s fellow music rightsholders.
In keeping with a supply talking to the Herald, HYBE has informed accomplice labels who use Weverse that it will likely be preserving between 30% and 60% of revenues from the brand new membership plan, relying on the tier. (The accomplice labels would then obtain between 40% and 70% of the cash.)
Some 130 accomplice labels have been informed in an e mail dated September 26 of the brand new subscription plan and concomitant phrases.
The Herald studies that they have been additionally informed that the phrases have been obligatory.
Weverse is seen by many within the music business as one of many main efforts to monetize superfans, that phase of the music viewers that’s keen to pay extra for entry to unique content material and a more in-depth relationship with their favourite artists.
Within the 5 years since its launch, the platform has grown to have some 10 million month-to-month lively customers (MAUs), and lately HYBE has been busily increasing the platform past its base in Korean pop music. Ariana Grande and The Child LAROI are among the many Western artists who’ve joined the platform in latest months.
Curiosity within the platform was additional sparked by the information earlier this yr that Common Music Group can be taking a stake in Weverse.
In August, Weverse introduced that it will be introducing subscription-based memberships for artists.
This membership service, to be launched in This fall of this yr, will likely be separate from present fanclub memberships on the platform and can provide “enhanced options for followers to take pleasure in Weverse in a extra handy atmosphere, together with the combination of sure fanclub options.”
HYBE’s proposed obligatory phrases for Weverse’s new subscription tiers has led to some criticism of the platform, together with from politicians resembling Rep. Lee Jung-mun of South Korea’s Democratic Social gathering.
“Weverse, operated by Hybe, has been criticized as an irreplaceable, monopolistic platform within the Okay-pop business, controlling every part from dwell content material and merchandise gross sales to fan group administration,” Rep. Lee mentioned, as quoted by the Herald.
Whereas it will be a stretch to say that Weverse is “monopolistic” in a world context, it might be simpler to make that argument inside the South Korean context, the place it’s far and away the most important superfan platform, with 5 instances as many MAUs as its nearest rival, SM Leisure’s Bubble, which has 2 million MAUs.
Of the 152 artist groups hosted on Weverse, 137 should not affiliated with HYBE labels, the Herald studies.
“Labels have turn out to be so depending on Weverse that they’ll now not conduct fan advertising with out it,” Rep. Lee mentioned. “The Honest Commerce Fee must completely examine these new types of monopolistic practices and decide whether or not unfair remedy is happening in opposition to affiliated corporations utilizing the platform.”
“Labels have turn out to be so depending on Weverse that they’ll now not conduct fan advertising with out it.”
Rep. Lee Jung-mun, Democratic Social gathering of Korea
The Herald studies that, whereas bigger South Korean file corporations like SM Leisure will be capable of deal with Weverse’s revenue-sharing cut up, given their giant fan bases, it may show to be extra of an issue for smaller labels.
One small label reportedly informed Rep. Lee that Weverse’s membership scheme may hurt artists’ reputations “by showing to use followers for cash.”
Some followers are additionally unimpressed with the paid membership provide, saying that it offers little extra worth. The brand new paid membership tier will provide options resembling ad-free and higher-quality video streaming, in addition to offline entry.
The Herald recommended the very fact Weverse is making membership obligatory for labels might be an indication that HYBE fears many labels wouldn’t enroll voluntarily.
HYBE has additionally been the goal of different shopper complaints. The corporate acquired essentially the most calls for for harm aid from shoppers amongst all Okay-pop corporations between January 2020 and August of this yr, Korea JoongAng Day by day reported final month.
In response to a request from Rep. Lee, the Korean Shopper Company (KCA) informed parliament that the 5 largest Okay-pop corporations – HYBE, Kakao Leisure, SM Leisure, JYP Leisure and YG Leisure – acquired 240 shopper harm aid requests throughout this era, and 66% of them have been in opposition to HYBE.
The requests have been associated to complaints resembling faulty Okay-pop merchandise, supply delays, and violations of refund insurance policies.
Weverse was amongst 4 e-commerce platforms linked to Okay-pop corporations to have been fined for violating shoppers’ rights by altering their refund home windows, the KCA mentioned.
The controversies over Weverse come amid a interval when HYBE, like different Okay-pop corporations, has seen its share value slide. It was down 20.5% year-to-date as of Thursday (October 17), buying and selling at KRW 192,100 (USD $140.20) per share.
That decline in market worth prompted holders of a collection of HYBE’s convertible bonds to demand early reimbursement, forcing HYBE to quickly refinance $293 million in debt. Firm CEO Jaesang Lee has reportedly informed employees that the corporate has enough money holdings, and HYBE is financially “very wholesome.”
The corporate has reported inconsistent income development this yr, which it attributed primarily to the hiatus of BTS, its largest Okay-pop act, whose members are serving obligatory army service.Music Enterprise Worldwide
