HYBE to revamp multilabel structure under new '2.0' plan

Industry

HYBE to revamp multilabel structure under new '2.0' plan

Published: 01 Aug. 2024, 19:03 Updated: 01 Aug. 2024, 19:34

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

HYBE logo [HYBE]

HYBE will revamp its so-called multilabel system to better structure the communication among its affiliates with a new HYBE 2.0 initiative three months after instigating a legal battle against the CEO of its own subsidiary.

The company announced the HYBE 2.0 plan in a letter to shareholders on Thursday in which it laid out four missions to "change the business structure and governance to secure competitiveness."

"Following the recent events, we considered from the ground up whether HYBE's multilabel system that helped grow the company needed ways of improvement and the considerations we should have as we expand it to the global market," read the letter, hinting at the conflict between ADOR CEO Min Hee-jin and executives of other HYBE companies including Source Music and Belift Lab.

As a measure to strengthen control of its subsidiary labels, HYBE announced the establishment of HYBE Music Group APAC, a new command center for its business in Korea and Japan. The group will establish a systematic structure to better enable communication between affiliates in the two countries, the company said in the letter signed by CEO Lee Jae-sang.

BigHit Music CEO Shin Young-jae will lead HYBE Music Group APAC.

HYBE, itself, will aim to expand K-pop fandoms in other regions, namely through music labels in the United States, Latin America and Japan that will focus on nurturing localized pop bands in each respective region.

The company plans to continually debut new artists in the U.S. market drawing from its experience with the production of Katseye, the U.S.-based girl group that was formed through its audition show “The Debut: Dream Academy” (2023).

HYBE Japan, too, will launch new artists following the debut of its Japanese boy band &TEAM. Former president and co-CEO of SM Entertainment Kim Young-min will take over as chairman of the Japanese arm.

HYBE will also debut its first artist in Latin America next year, utilizing its K-pop production system.

New business models are also upcoming.

Weverse, HYBE's fan community platform, will launch a new "subscription membership service" in the fourth quarter of this year, which will allow fans to purchase ad-free and offline video playback, exclusive content and early access to fan events that are not available in the existing yearly fan club membership payments.

More artists are also slated to join HYBE’s private messaging service, Weverse DM.

"HYBE has also changed the leadership of the company, based on the belief that the company needs a new head to lead HYBE 2.0," Lee stated in the letter.

Lee was appointed to the conglomerate's top spot last month after Ador CEO Min reported its former CEO, Park Ji-won, and four other executives to the police.

Lee has yet to be appointed chairman of the board. HYBE did not specify the date of the shareholders' or board of directors' meeting where Lee's inauguration will be signed off.

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]