HYBE unveils a new long-term growth strategy dubbed “HYBE 2.0.” aiming to lead global music industry

HYBE has revealed a substantial restructuring of its worldwide operations on August 1, 2024. The entertainment behemoth, with its headquarters in South Korea, replaced Park Ji-won, the company's former CEO for the last four years, with HYBE Chief Strategy Officer Lee Jae-sang on July 23, 2024.

Billboard reported that the "HYBE 2.0 strategy rollout" circles around the newly appointed CEO, Lee Jae-sang, and boosts the company's subsidiaries, solutions, and platform operations. With the new structure, these divisions will become music, platforms, and tech-based future growth enterprises.

According to the company's statement, Weverse will broaden the genres it offers to American and Japanese audiences. It will also improve its service model to encourage artist participation and provide viewers with a more engaging experience.

Furthermore, they intend to improve fan experiences, quicken the pace of its operations' growth in Korea, the US, Japan, and Latin America, and establish interregional synergies.

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“HYBE 2.0.” brings in the new structure in four categories to enhance the company's global outreach

HYBE will extend its incubation network to include more tech-based future growth businesses. The company's Latin America division is working with local businesses to promote technology-driven projects and music-based business models.

They are also building infrastructure in Mexico City and supporting musicians. Next year, it intends to release its first K-pop singer.

The new structure focuses on the following four points:

1. Multi-label system expansion and the founding of HYBE MUSIC GROUP APAC.
2. Utilizing a "multi-home, multi-genre" approach to take the forefront in the worldwide music industry.
3. Introduction of the superfan platform Weverse's subscription membership plan—an extension of the fandom service model.
4. Establishing tech-based future growth companies to safeguard HYBE's new mid-to-long-term growth engines.

The multi-label business in Korea and Japan will be managed by HYBE MUSIC GROUP APAC. Shin Young-jae, the current president of BIGHIT MUSIC and a key player in the success of BTS and Tomorrow X Together, will be the president of APAC. He will be spearheading the international expansion of the Korean and Japanese labels.

This new group will concentrate on strengthening strategies and procedures, allocating resources, and improving music service functions to expedite international company development.

The company's "Multi-home, Multi-genre" approach is designed to penetrate regional markets by emulating distinctive local customs and traits. It will be used in the US, Japan, and Latin America.

Billboard reported that HYBE America, led by Scooter Braun as CEO, will construct artists' career growth curves and supply suitable business models through the new 360 business strategy. The same strategy will be used in the Japan branch, with Kim Young-min as its Chairman. He was the former General Manager of SM Entertainment.

It will done as follows:

• The 360 business strategy will construct the artists with suitable career growth models.
• Create and develop more American groups based on KATSEYE and Japanese groups based on &TEAM.
• Developing a business model that fosters artist growth.
• The label service will provide local artists with full services beyond recording or management agreements.
• To concentrate on creating local Japanese artists and grow its solutions business in the J-pop industry.

In Q4 of 2024, Weverse will provide a subscription membership service that will provide improved features and services related to fan club usage. The service will provide offline VOD storage, bonus Jelly charges, digital membership cards, and ad-free video streaming.

Artists have 24/7 access to subscription membership services. Weverse Direct Message (DM) is a way for artists and fans to communicate that will be extended to other artists, including artists, and the complete implementation of ads is planned.

With the use of content-related technologies and customer experience prediction, "HYBE 2.0" seeks to identify and safeguard mid-to-long-term growth engines. The company is concentrating on developing new ventures in areas including gaming, speech and audio technologies, generative AI, unique narrative, and integrated online/offline experience design.

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Billboard reported that CEO Lee Jae-sang intends to expand the company's domestic and international music business and fortify its position in the superfan market with platform business.