Fan platforms DearU Bubble and Universe will be integrated into Weverse after HYBE acquires SM shares?
As HYBE becomes the largest shareholder of SM, it is expected to take steps and integrate DearU Bubble and Universe into Weverse.
On February 10th, the media reported that HYBE has become the largest shareholder of SM by paying 422.8 billion won to acquire Lee Soo Man’s 14.8% share in SM. The purpose of this acquisition is revealed to be “strengthening competitiveness and creating synergy in the K-pop market”. HYBE also announced that they would also buy shares held by SM minor shareholders and SM affiliates, Dream Maker and SM Brand Marketing.
Therefore, people in the entertainment industry believe that HYBE’s next move would be the fan communication platform. Many cite ‘fan platform’ as one of the reasons HYBE is trying to acquire SM. It is because ‘fan platform’ is also a key factor for diversifying profits in the entertainment industry. An entertainment industry official predicted, “HYBE’s Weverse has grown in size as it acquired Naver’s V LIVE but its profitability has not improved”, adding “On the other hand, SM’s Bubble is gaining huge profit from the private message subscription service. If Bubble services are added to Weverse, the synergy would be significant”.
SM’s DearU is operating a private message platform called Bubble. Since its launch in 2020, Bubble has signed contracts with SM and 67 domestic entertainment agencies to supply paid subscription content for 125 groups and solo artists. In particular, Bubble allows fans to send and receive 1:1 messages with artists. HYBE’s Weverse doesn’t have this service.
DearU recently acquired the fan platform Universe launched by NCSoft in January 2021. Universe also provides paid subscription content for more than 30 artists. It eventually fell into the hands of DearU after deciding to withdraw its business in December due to deficits and difficulties in securing new artists.
HYBE’s Weverse is currently the No.1 fan platform in Korea. Launched in 2019, Weverse exceeded 53.9 million subscribers at the end of last year. Weverse later acquired V LIVE and integrated it into its own system. More than 80 domestic and foreign artists, including BTS, BLACKPINK, BIG BANG, etc., are using Weverse to communicate with fans. HYBE also has another fan platform called Phoning for NewJeans. This app has a similar private message service as DearU’s Bubble.
However, many people are also raising concerns about market monopolization. An official from a small and medium-sized agency said, “In some cases, Weverse, Bubble, and Universe offered preferential conditions and services to agencies to attract new artists. In the future, it is obvious that the services would be reduced if the three platforms are integrated into one”, adding “The core of the fandom business is the communication platform, and if large agencies monopolize the platform market, there will be no place for small and medium-sized agencies to stand.”
Source: edaily
