As hinted by HYBE’s former CEO Park Ji Won last week, HYBE has launched a new medium- and long-term growth strategy called “HYBE 2.0.”
On August 1, HYBE released the details of this strategy through the following statement:
HYBE’s three main business areas, which previously consisted of record labels, solutions and platforms, will be restructured into music, platforms and technology-based future growth businesses through HYBE 2.0. To ensure the business’s competitiveness in the medium and long term, HYBE has been preparing the HYBE 2.0 strategy since the second half of last year.
In the music business, HYBE plans to improve content quality and fan experience, 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 by targeting Japan and the United States and improve its service model to activate artists’ activities, providing fans with richer experiences.
In the future technology-based growth business sector, HYBE will expand its game incubation business and pursue advanced R&D for future entertainment.
Creation of HYBE MUSIC GROUP APAC with the advancement of the multi-brand system
HYBE will establish HYBE MUSIC GROUP APAC to oversee the multi-brand business in Korea and Japan. This new group will focus on strengthening strategies and processes, investing resources, and enhancing music service functions to accelerate the business’ global 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, political, and business model developments and has successfully improved the label’s organization and functions.
Establish a leadership position in the global music industry with a “Multi-home, Multi-genre” strategy.
HYBE pursues a “Multi-home, Multi-genre” strategy to establish a leading position in local markets by reflecting local cultures and characteristics, especially in the United States, Japan, and Latin America. In HYBE 2.0, business strategies are being realized by integrating K-pop knowledge tailored to each market’s environment. The goal is to secure a leading position in each market while simultaneously attracting 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 record label service and developing new localized talent.
First, with HYBE America, a record label service will be launched that combines the traditional management business in the United States with HYBE’s 360 business model. The label service will design the growth curve of artists’ careers and offer suitable business models at each stage. By developing a business model that supports the growth of artists, which is HYBE’s strong point, the label service plans to operate by offering comprehensive services to local artists, beyond simple recording or management contracts.
Additionally, HYBE plans to continue producing new localized talents in the United States, starting with KATSEYE, who 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. This established infrastructure is expected to continue to be utilized to produce more localized new talents 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 increase K-pop’s presence 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 talents following &TEAM.
To accelerate its growth, HYBE Japan has recently appointed Kim Young Min, former CEO of SM Entertainment, as President of HYBE Japan. Known as a Japan expert in the entertainment industry, President Kim Young Min aims to apply the successful formula established by HYBE in the K-pop industry to the Japanese market, with the ambition to elevate HYBE Japan to become the leading entertainment company in Japan.
In Latin America, HYBE Latin America is building specialized studios in Mexico City and recruiting and nurturing producers and artists. HYBE’s first Latin artist, produced using the K-pop system, is expected to debut next year.
HYBE Latin America, responsible for the Latin market, is building specialized studios in Mexico City as part of its infrastructure development. The company is also working on recruiting and promoting producers and artists. HYBE Latin America plans to rapidly launch various music-based business models and technology-driven startups through strong partnerships with leading local companies. Starting next year, it is expected to unveil several achievements, including the debut of HYBE Latin’s first K-pop-produced artist.
Launch of the subscription to the platform for superfans Weverse: expansion of the service model for fandoms
Weverse, the world’s largest superfan platform, will expand its service model fandom starting in the fourth quarter of this year.
First, a subscription service will be launched in the fourth quarter of this year. The subscription will be a separate service from existing fan clubs, but will operate simultaneously, and will offer enhanced features for fans to use Weverse more conveniently and some services tied to the use of the fan club.
This service will include functions such as digital membership cards, Jelly bonus recharge, ad-free video viewing, and VOD saving for offline use. Services such as viewing member content and priority participation in events can be optionally included. Artists who are members of Weverse will be able to easily open and use the membership subscription services at any time.
Weverse DM, which is being widely welcomed as a form of communication between artists and fans, will be expanded throughout this year as a service that will include other artists, including those from HYBE. In addition, advertisements that were partially introduced in certain areas of Weverse earlier this year will be fully implemented this year.
Secure new medium- and long-term growth drivers for HYBE through technology-based future growth businesses.
HYBE 2.0’s technology-based future growth business sector is responsible for strategic exploration and anticipation of new growth areas arising from changes in the entertainment industry environment. The goal is to secure HYBE’s new growth drivers in the medium and long term by actively seeking to integrate content-related technologies and predicting the direction of changes in customer experience.
In the future technology-based growth business sector, several new businesses that have been prepared internally at HYBE will undergo strategic coordination and integration. Currently, business models are being verified and tested in areas including the game business, audio/voice technology, generative AI, original story business, and integrated experience design. online/offlineNew investments in these areas will be made carefully, taking into account the future direction and profitability of the company.
HYBE’s new CEO Lee Jae Sang revealed, “Based on HYBE 2.0, which focuses on nurturing music, platform, and technology-based future growth businesses, HYBE will continue to develop the domestic and global music business, consolidate its leading position in the evolving superfan market through the platform business, and secure mid- and long-term growth drivers through technology-based future growth businesses.”
