K-pop giant HYBE\u2019s superfan platform Weverse is launching a set of new higher-priced membership tiers for users on December 1.<\/p>\n
Current Weverse subscribers pay around USD $24 per year<\/strong> for benefits including exclusive content and announcements from their favorite artists.<\/a><\/p>\n According to The Korea Herald<\/em><\/a>, the new Weverse<\/strong> launch \u2013 dubbed “digital membership” \u2013 will upsell fans into new tiers with prices ranging from $2 to $4 per month<\/strong>, which will offer additional benefits such as offline access to music and ad-free video streaming.<\/p>\n There is, though, a catch for HYBE’s<\/strong> fellow music rightsholders.<\/p>\n According to a source speaking to the Herald<\/em>, HYBE<\/strong> has told partner labels who use Weverse<\/strong> that it will be keeping between 30%<\/strong> and 60%<\/strong> of revenues from the new membership plan, depending on the tier. (The partner labels would then receive between 40%<\/strong> and 70%<\/strong> of the money.)<\/p>\n Some 130 partner labels<\/strong> were told in an email dated September 26 of the new subscription plan and concomitant terms.<\/p>\n The Herald<\/em><\/a> reports that they were also told that the terms were mandatory.<\/p>\n Weverse is seen by many in the music industry as one of the leading efforts to monetize superfans, that segment of the music audience that is willing to pay more for access to exclusive content and a closer relationship with their favorite artists.<\/p>\n In the five years since its launch, the platform has grown to have some 10 million<\/strong> monthly active users (MAUs), and recently HYBE has been busily expanding the platform beyond its base in Korean pop music. Ariana Grande<\/strong><\/a> and The Kid LAROI<\/strong><\/a> are among the Western artists who have joined the platform in recent months.<\/p>\n Interest in the platform was further sparked by the news earlier this year that Universal Music Group<\/strong> would be taking a stake<\/a> in Weverse.<\/p>\n In August, Weverse announced<\/a> that it would be introducing subscription-based memberships for artists.<\/p>\n This membership service, to be launched in Q4 of this year, will be separate from existing fanclub memberships on the platform and will offer \u201cenhanced features for fans to enjoy Weverse in a more convenient environment, along with the integration of certain fanclub features.\u201d<\/p>\n HYBE’s proposed mandatory terms for Weverse’s new subscription tiers has led to some criticism of the platform, including from politicians such as Rep. Lee Jung-mun<\/strong> of South Korea\u2019s Democratic Party.<\/p>\n “Weverse, operated by Hybe, has been criticized as an irreplaceable, monopolistic platform in the K-pop industry, controlling everything from live content and merchandise sales to fan community management,” Rep. Lee said, as quoted by the Herald<\/em>.<\/p>\n While it would be a stretch to say that Weverse is \u201cmonopolistic\u201d in a global context, it may be easier to make that argument within the South Korean context, where it is far and away the largest superfan platform, with five times as many MAUs as its nearest rival, SM Entertainment<\/strong>\u2019s Bubble<\/strong>, which has 2 million<\/strong> MAUs.<\/p>\n Of the 152<\/strong> artist teams hosted on Weverse, 137<\/strong> are not affiliated with HYBE labels, the Herald<\/em> reports.<\/p>\n “Labels have become so dependent on Weverse that they can no longer conduct fan marketing without it,\u201d Rep. Lee said. \u201cThe Fair Trade Commission needs to thoroughly investigate these new forms of monopolistic practices and determine whether unfair treatment is occurring against affiliated companies using the platform.”<\/p>\n “Labels have become so dependent on Weverse that they can no longer conduct fan marketing without it.\u201d<\/p>\n Rep. Lee Jung-mun, Democratic Party of Korea<\/span><\/p><\/blockquote>\n The Herald<\/em> reports that, while larger South Korean record companies like SM Entertainment will be able to handle Weverse\u2019s revenue-sharing split, given their large fan bases, it could prove to be more of a problem for smaller labels.<\/p>\n One small label reportedly told Rep. Lee that Weverse\u2019s membership scheme could harm artists\u2019 reputations \u201cby appearing to exploit fans for money.\u201d<\/p>\n Some fans are also unimpressed with the paid membership offer, saying that it provides little additional value. The new paid membership tier will offer features such as ad-free and higher-quality video streaming, as well as offline access.<\/p>\n The Herald<\/em> suggested that Weverse’s decision to make label membership mandatory could be a sign that HYBE fears many labels will not sign up voluntarily.<\/p>\n “Joining the digital membership is at the user’s discretion, and all non-paid users will still be able to use the existing Weverse for free,” a HYBE spokesperson told MBW<\/em> by email.<\/p>\n “Benefits provided by the membership, such as ad-free video streaming and offline VOD storage, are additional perks that can be enjoyed alongside the existing Weverse features.<\/p>\n “Weverse offered an enhanced membership option for all labels and artists within our community. This initiative reflects an unwavering commitment to providing users with greater choices for an improved platform experience. Weverse will make continuous investments in the stability and quality of our services.”<\/p>\n HYBE has also been the target of other consumer complaints. The company received the most demands for damage relief from consumers among all K-pop companies between January 2020 and August of this year, Korea JoongAng Daily<\/em> reported<\/a> last month.<\/p>\n In response to a request from Rep. Lee, the Korean Consumer Agency (KCA) told parliament that the five largest K-pop companies \u2013 HYBE, Kakao Entertainment<\/strong>, SM Entertainment, JYP Entertainment<\/strong> and YG Entertainment<\/strong> \u2013 received 240<\/strong> consumer damage relief requests during this period, and 66%<\/strong> of them were against HYBE.<\/p>\n The requests were related to complaints such as defective K-pop merchandise, delivery delays, and violations of refund policies.<\/p>\n Weverse was among four e-commerce platforms linked to K-pop firms to have been fined for violating consumers\u2019 rights by altering their refund windows, the KCA said.<\/p>\n The controversies over Weverse come amid a period when HYBE, like other K-pop companies, has seen its share price slide. It was down 20.5%<\/strong><\/span> year-to-date as of Thursday (October 17), trading at KRW 192,100<\/strong> (USD $140.20<\/strong>) per share.<\/p>\n
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