Weverse Co. CEO Joon Choi stands to answer a question during a Culture, Sports and Tourism Committee audit at the National Assembly in Yeouido, Seoul, on Oct. 7. (Yonhap)
Weverse Company, a global fan platform run by Hybe, is facing backlash for alledgely forcing its partner labels into a mandatory paid membership service, sparking accusations of monopolistic practices. The new "digital membership" service, set to launch on Dec. 1, compels over 130 music labels to participate, raising concerns about coercion, unfair revenue-sharing and exploiting fan loyalty for profit.
According to Rep. Lee Jung-mun of the Democratic Party of Korea, Weverse emailed 130 partner labels on Sept. 26, informing them of the new subscription-based service tentatively called "digital membership" and mandating their participation.
"Digital membership is a service offering fans exclusive digital benefits, primarily accessible through Weverse. This membership is mandatory for all artist communities hosted on Weverse, allowing fans to subscribe to individual community memberships on a monthly basis and selectively access digital membership services," Weverse wrote in an email, which The Korea Herald exclusively obtained on Oct. 7.
'Unfair' revenue sharing
Weverse already provides a paid community membership option priced at 30,000 won ($24) annually, offering perks like early ticket access and exclusive content, determined by the artists and their labels.
However, the new service adds extra features such as offline access, ad-free video streaming and higher-quality VODs -- similar to YouTube’s premium service. To offer these benefits, labels are forced into a revenue-sharing arrangement with Weverse, a deal many reportedly find unfavorable.
The proposed revenue split, according to an anonymous source, sees labels receiving between 40 percent and 70 percent of profits, while Weverse retains a hefty 30 percent to 60 percent. This significant cut, depending on subscription tier, has sparked discontent among partner labels, who believe the portion Weverse keeps is disproportionate. The monthly subscription prices range from 2,700 won to 5,400 won ($2 to $4).
An email sent by Weverse to over 130 partner labels on Sept. 26 introduces a new paid membership service, scheduled to launch on Dec. 1. (Rep. Lee Jung-mun's office)
While major labels listed on the Weverse platform such as YG Entertainment and SM Entertainment may not be thrilled with this revenue-sharing model, their larger fanbases allow them to generate bigger profits compared to smaller labels, even with the same level of content output. Yet, smaller labels are particularly wary, with one label telling Rep. Lee the proposal is not only unattractive but could also harm artists’ reputations by appearing to exploit fans for money. The mandatory approach suggests that Weverse fears labels might decline to join the service if it is made optional.
Labels with little choice
Abandoning Weverse, however, is not an option for most labels. The platform has an unchallenged grip on the K-pop fandom market.
As of June, Weverse boasted 10 million monthly active users, reinforcing its dominant position. Of the 152 teams hosted on Weverse, 137 are not Hybe-affiliated, showcasing its extensive reach. The platform caters not only to Hybe's groups like BTS, NewJeans and Seventeen, but also to acts from other K-pop giants like Blackpink, aespa, and EXO. Its only real competitor, SM Entertainment's Bubble, has just 2 million paid users, and that number is steadily declining.
In this monopolistic market structure, labels on Weverse feel pressured to comply with the new membership program, though no details have been provided about potential consequences for non-participation, according to sources.
Hybe declined to comment on the issue.
"Weverse, operated by Hybe, has been criticized as an irreplaceable, monopolistic platform in the K-pop industry, controlling everything from live content and merchandise sales to fan community management," Rep. Lee said Tuesday.
"Labels have become so dependent on Weverse that they can no longer conduct fan marketing without it. The Fair Trade Commission needs to thoroughly investigate these new forms of monopolistic practices and determine whether unfair treatment is occurring against affiliated companies using the platform," Lee noted.
Some fans call new membership perks worthless
K-pop fans, too, are voicing dissatisfaction. They argue that the "exclusive benefits" offered by the new membership tiers provide little additional value.
Park, a 25-year-old K-pop fan who uses Weverse, finds the new perks less appealing, particularly because opportunities to use them are infrequent.
Baekhyun, Xiumin and Chen, members of K-pop group EXO, on Weverse platform (Weverse)
"It's often joked among fans that the only real benefit of the membership is early concert ticket access. Even that is limited if the artist doesn’t hold many concerts, which lowers the overall value of the membership," Park told The Korea Herald on Wednesday.
Fans also pointed out that content like artist-produced videos or live streams, once free on platforms like YouTube, V Live, and Instagram, are now being monetized through Weverse. This shift has left fans feeling like their loyalty is being exploited for profit.
While fans understand that Weverse, as a business, needs to generate revenue, many feel that the new membership tiers offer perks that are either unnecessary or too similar to the existing membership. Bonuses like early concert ticketing, fan event raffles and ad-free streaming are not new, so little value is added for existing fan club members.
"The monetization of artist content under the guise of ‘new benefits’ feels like turning fans into cash cows," Park added. "It gives the impression that fans are seen as mere revenue sources, rather than being appreciated for their support."
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