HYBE Announces Details For New Business Strategy HYBE 2.0

HYBE has unveiled its new business strategy!

As hinted at last week by former HYBE CEO Park Ji Won, HYBE has launched a new mid-to-long-term growth strategy dubbed “HYBE 2.0.”

On August 1, HYBE shared the details of this strategy through the following statement:

HYBE’s three main business areas, previously consisting of labels, solutions, and platforms, will be restructured into music, platforms, and tech-based future growth businesses through HYBE 2.0. To secure mid-to-long-term business competitiveness, HYBE has been preparing the HYBE 2.0 strategy since the second half of last year.

In the music business, HYBE plans to enhance the quality of content and fan experiences, accelerate the expansion of its operations in Korea, the United States, Japan, and Latin America, and create synergies between these regions.

Weverse, the core of the platform business, will expand its genres targeting Japan and the United States and enhance its service model to activate artist activities, providing fans with richer experiences.

In the tech-based future growth business sector, HYBE will expand its incubating game business and pursue advanced R&D for future entertainment.

Establishment of HYBE MUSIC GROUP APAC with multi-label system advancement

HYBE will establish HYBE MUSIC GROUP APAC to oversee the multi-label business in Korea and Japan. This new group will focus on strengthening strategies and processes, investing resources, and enhancing music service functions to accelerate global business expansion.

Shin Young Jae, the current CEO of BIGHIT MUSIC, will be the first CEO of HYBE MUSIC GROUP APAC. Since joining BIGHIT Entertainment in 2019, Shin Young Jae has led various strategic, policy, and business model developments and successfully enhanced the label’s organization and functions.

Establishing a leading position in the global music industry with a “Multi-home, Multi-genre” strategy

HYBE is pursuing a “Multi-home, Multi-genre” strategy to establish a leading position in local markets by reflecting local cultures and characteristics, particularly in the United States, Japan, and Latin America. In HYBE 2.0, business strategies are being concretized by integrating K-pop expertise tailored to each market environment. The aim is to secure a leading position in each market and simultaneously attract new audiences who previously did not consume K-pop, thereby expanding HYBE’s ecosystem.

In the United States, the world’s largest music market, HYBE plans to focus on launching a label service and developing localized new talent.

First, under HYBE America, a label service that combines traditional management business in the United States with HYBE’s 360 business model will be launched. The label service will design the career growth curve of artists and provide appropriate business models at each stage. By developing a business model that supports artist growth, which is HYBE’s strength, the label service plans to operate by offering comprehensive services to local artists, going beyond simple recording or management contracts.

Additionally, HYBE plans to continue producing localized new talent in the United States, starting with KATSEYE, which debuted this year. KATSEYE, HYBE’s first localized group in the United States, debuted in June through a project that introduced K-pop methodologies to the American pop genre in collaboration with Geffen Records. For KATSEYE’s debut, HYBE established various infrastructures in the United States for artist development, including training, marketing and promotion, and A&R. It is expected that this established infrastructure will continue to be utilized to produce more localized new talent in the future.

In Japan, the world’s second-largest music market, HYBE plans to focus on producing localized artists and expanding its solutions business within the J-pop market. The goal is to simultaneously grow the presence of K-pop and establish a significant presence in the J-pop genre, ultimately positioning HYBE as a leading company in Japan, comparable to its status in Korea. HYBE Japan also plans to introduce new localized talent following &TEAM.

To accelerate its growth, HYBE Japan has newly appointed Kim Young Min, former General Manager of SM Entertainment, as Chairman of HYBE Japan. Known as a leading expert on Japan in the entertainment industry, Chairman Kim Young Min aims to apply the successful formula established by HYBE in the K-pop industry to the Japanese market, with the ambition of elevating HYBE Japan to become the top entertainment company in Japan.

In Latin America, HYBE Latin America is building dedicated studios in Mexico City and recruiting and nurturing producers and artists. The first HYBE Latin artist, produced using the K-pop system, is expected to debut next year.

HYBE Latin America, which is responsible for the Latin market, is currently building dedicated studios in Mexico City as part of its infrastructure development. The company is also working on recruiting and nurturing producers and artists. HYBE Latin America plans to rapidly advance various music-based business models and technology-driven new ventures through strong partnerships with leading local companies. Starting next year, it is expected to unveil various achievements, including the debut of HYBE Latin’s first artist produced using the K-pop system.

Launch of subscription membership for superfan platform Weverse—expansion of fandom service model

Weverse, the world’s largest superfan platform, will expand its fandom service model starting in the fourth quarter of this year.

First, a subscription membership service will be launched in the fourth quarter of this year. The subscription membership will be a separate service from the existing fan club memberships but run simultaneously, offering enhanced features for fans to use Weverse more comfortably and some services linked to fan club usage.

This service will include features such as digital membership cards, charging bonus Jelly, watching videos without advertisements, and saving VOD for offline use. Services such as viewing membership content and priority for event participation can be included optionally. Artists that are part of Weverse can easily open and use subscription membership services at any time as they wish.

Weverse DM, which is receiving love as a form of communication between artists and fans, will expand as a service that includes various other artists including HYBE artists within this year. Additionally, the advertisements that were partially introduced in certain areas of Weverse earlier this year will be fully implemented within this year.

Securing HYBE’s new mid-to-long-term growth engines through tech-based future growth businesses

The tech-based future growth business sector of HYBE 2.0 is responsible for the strategic exploration and preemption of new growth areas arising from changes in the entertainment industry environment. The goal is to secure HYBE’s new mid-to-long-term growth engines by actively attempting to integrate content-related technologies and predicting the direction of changes in customer experience.

In the tech-based future growth business sector, various new businesses that have been prepared internally at HYBE will undergo strategic coordination and integration. Currently, business model verification and testing are being pursued in areas including gaming business, audio/voice technology, generative AI, original story business, and integrated online/offline experience design. New investments in these areas will be carefully made, considering the company’s future direction and profitability.

HYBE’s new CEO Lee Jae Sang revealed, “Based on HYBE 2.0, which focuses on nurturing music, platform, and tech-based future growth businesses, HYBE will continue to develop the domestic and global music business, solidify its leading position in the changing superfan market through platform business, and secure mid-to-long-term growth engines through tech-based future growth businesses.”

 

 

source: Soompi