Kakao Entertainment has announced the upcoming launch of its fandom platform "BeRise," suggesting a significant shift in the domestic fandom platform market. The marketplace, currently led by HYBE's "Weverse," could be restructured into a two-player competition between Weverse and Kakao.
Kakao, which has acquired SM Entertainment, is expected to aggressively target both domestic and international fandom platform markets by leveraging synergies between the existing fandom platform "Bubble," operated by SM's subsidiary, and the new BeRise platform set to launch this year. HYBE is likewise accelerating its growth as a global fandom platform, enhancing its AI capabilities and leading the Weverse activities of internationally renowned pop artists.
◇Fandom platform, a new revenue model for K-Entertainment
Fandom platforms are online spaces where fans can enjoy various content from K-pop artists and interact with them. They support a wide range of fandom activities from recruiting and managing fans to announcements, distributing original content, selling merchandise, event bookings, and communication between fans and artists.
In particular, domestic entertainment companies are gaining attention as they attempt to move beyond their traditional business models based on albums and performances of their affiliated artists, aiming instead to develop platforms that allow for a broader enjoyment of diverse content from the artists.
Amid the global popularity of K-content such as K-pop and dramas, the effectiveness of expanding into overseas markets through fandom platforms has spurred entertainment corporations to strengthen their fandom platform businesses. In a situation where growth is limited merely by releasing albums and holding performances abroad, creating an online platform allows fans to enjoy the various activities of artists, thus establishing a new revenue model.
In fact, HYBE's "Weverse Con Festival," held offline and on the Weverse platform simultaneously over two days last June, attracted approximately 22,000 attendees, with over 18,000 enjoying the performance through live streaming.
Currently, the domestic fandom platform market is led by HYBE's subsidiary, Weverse Company, which recorded 9.7 million monthly active users (MAU) in the third quarter of last year. Alongside BTS, which has about 27.13 million members, artists from HYBE such as Seventeen, ENHYPEN, and LE SSERAFIM, as well as those from YG and SM, are active on the platform.
Last year, the platform led Weverse activities for internationally renowned pop artists like Ariana Grande, Dua Lipa, and The Kid Laroi. Consequently, the proportion of overseas users reached 87%. Revenue increased by 41%, rising from 239.4 billion won in 2021 to 337.9 billion won in 2023.
Weverse is currently enhancing its AI capabilities to further penetrate the global market. Last month, it introduced a new paid membership called "Digital Membership" and provides improved quality features with AI technology, along with automatic subtitle services in 13 languages, including English, Japanese, and Chinese.
◇Kakao enters the fandom platform competition
Kakao is also entering the fandom platform market. According to the entertainment industry on the 3rd, Kakao's subsidiary, Kakao Entertainment, is developing the fandom platform BeRise, with plans to launch it within the year. Internal testing is currently underway.
Industry observers note that Kakao is home to K-pop labels like SM, Starship, and Idam, as well as various actor agencies, drama, and film production companies. Based on this, analysts anticipate that Kakao Entertainment will build a fandom platform that encompasses a broad range of "K-culture," extending beyond K-pop to include webtoons, dramas, and films.
Additionally, there are expectations for synergy with "Bubble," the fandom platform operated by DearU, a subsidiary of SM acquired by Kakao in 2023. While Bubble enhances its core function of one-on-one communication between artists and fans, BeRise is set to leap forward as a fandom platform that covers K-culture. In fact, Bubble has focused on expanding into overseas markets, launching its services in Japan last June and in the U.S. last October. DearU's revenue has grown by 89%, from 40 billion won in 2021 to 75.6 billion won in 2023.
As a result, a competitive landscape between HYBE and Kakao is expected to continue in the domestic and international fandom platform markets. An industry insider noted, "Changes are expected from HYBE's Weverse, which has been dominant, towards a two-player system led by HYBE and Kakao. The industry is closely watching what strategies Kakao will adopt."
Professor Kim Young-jae of Hanyang University's Department of Cultural Contents believes that the reorganization of the fandom platforms of HYBE and Kakao into a two-pillar system could positively influence the global market entry of K-content. Professor Kim stated, "The more fiercely the two platforms compete, the better services they will offer, and more K-pop, dramas, and other content will be delivered to international fans, enhancing the power of K-content."
However, Professor Kim cautions, "The principle that only large platforms that attract customers can survive in the platform business cannot be ignored. If both HYBE and Kakao's fandom platform businesses head in a similar direction, one will inevitably collapse."