K-pop has recently seen a slowdown in its growth, leading to a retreat in users of the two major fandom platforms, Weverse and DearU.
Fandom platforms refer to online spaces where fans can engage in activities while consuming various products and services related to their favorite artists.
The absence of group BTS and BLACKPINK, which have effectively led the K-pop market, is cited as the most apparent reason.
This year, their activities are expected to resume, but predictions are mixed about whether the fandom platforms will regain their vitality.
According to the business report of HYBE, the largest entertainment company in South Korea, Weverse Company, which operates the fandom platform "Weverse," is projected to have a revenue of 255.6 billion won in 2024, a decrease of 24.3% from the previous year. The net loss is also reported to have surged to 10.7 billion won, more than doubling.
The situation of DearU, a subsidiary of SME that operates another fandom platform "Bubble," was similar. The company recorded revenue of 74.9 billion won last year, a 1.3% decline from the previous year (75.7 billion won), and operating profit decreased by 11% from 28.6 billion won to 25.4 billion won.
The departure or inactivity of major artists that attract fans has had an impact. The monthly average active user count (MAU) of Weverse peaked at 10.6 million in the third quarter of 2023 but fell to around 9.4 million by the fourth quarter of last year. DearU, which focuses on a paid service where fans and artists exchange messages one-on-one for 4,500 won per month, also saw its subscriber count slide from 2.3 million to 1.9 million during the same period.
This sentiment among fans reflects the anxiety spreading through the K-pop market. The 'K-pop era of 100 million sales,' which began in 2023, came to an end within a year. According to the Circle Chart operated by the Korea Music Content Association, K-pop physical album sales from January to December last year totaled 98.9 million copies, a 17.7% decrease from the previous year (102 million copies).
Last year's physical album export value was about 423.8 billion won (according to Korea Customs Service import and export trade statistics), showing only a slight increase of 0.55% from the previous year (about 421.5 billion won). There are evaluations that the growth of K-pop has stalled for the first time in a decade since 2015.
In this situation, fandom platforms are seeking breakthroughs through the introduction of paid models and overseas expansion.
Weverse has introduced a subscription-based chat service called "Weverse DM," which allows artists and fans to converse one-on-one, similar to Bubble. Last December, it also launched a digital membership service that offers ad-free video content and automatic subtitle services, betting on a turnaround to profitability. The industry is paying attention to whether it can attract new subscribers along with the full-group comeback of BTS.
DearU, now incorporated as a subsidiary of SME, is pushing for the participation of major SME artists such as RIIZE and NCT Dream. It aims to increase its subscriber base by providing the Bubble service within these apps in partnership with Tencent Music in China, as well as promoting the entry of Chinese artists.
There are also voices of caution in academia. Kim Chi-ho, a professor in the Department of Cultural Contents at Hanyang University, noted, "While it is important for fandom platforms to create various revenue models from a business perspective, it is necessary to approach fans as strategic partners who help nurture artists rather than merely consumers in the long term."