The Rise of Superfan Platforms
The musical industry is focusing on the segmentation of subscription offerings to boost revenue from music streaming.
As highlighted by Universal Music Group’s executive team during recent earnings calls, superfans are willing to pay more for exclusive content from their favorite artists, playing a crucial role in the advent of “stream 2.0” driven by UMG. Currently, Spotify is working on incorporating Superfan content into its upcoming premium tier.
However, valuable insights can already be drawn from existing Superfan applications, with dominant players like HYBE leading the way, generating significant revenue for artists and labels through exclusive content, merchandise, live events, and beyond.
The Launch of Berriz
Now, Cacao Entertainment, a key player in the Korean entertainment scene and a competitor to HYBE, has officially entered this market. Cacao has launched a new application called Berriz, designed as an “advanced global fan platform aimed at revolutionizing user experience.” This move puts Cacao in direct competition with HYBE.
Cacao, along with its parent company, Kakao Corp., holds 40.28% of K-Pop Company CM Entertainment (see below). It also owns the South Korean music streaming service Melon.
Notably, in 2023, Kakao and HYBE engaged in a corporate battle to gain control of SM Entertainment.
As of June 30, 2024, HYBE owns 9.38% of SM Entertainment.
Superfan platforms generate revenue through several channels, including exclusive subscription content, merchandise sales, live broadcasts, and direct artist interactions.
In December, HYBE Weverse launched a digital membership subscription service that offers even more features for an additional fee, such as real-time translation in 18 languages, offline saving options, AI-enhanced video quality, and exclusive perks for subscribers.
According to HYBE’s CFO, Köng-June Lee stated during a fourth-quarter earnings call that while the digital membership service is “in its early stages,” its revenue is “expected to grow steadily,” with income recognition starting in January 2025 after a free trial for users.
The “Artist-Activism” segment, which encompasses merchandising, licensing, and the HYBE Superfan platform, is projected to increase revenue by 14.5% year over to KRW 809.29 billion (593.56 million dollars) in 2024.
By the end of 2024, Weverse estimated 9.4 million active users per month (see below).
As of the end of 2024, HYBE’s Weverse also celebrated reaching a milestone of 150 million cumulative global downloads, with the number of artist communities on the platform growing by 30% year over to 162 from the previous year. Weverse has indicated that about 90% of the artists on the platform are signed to labels other than HYBE.
In 2023, 13 artists from SM joined Weverse, including SNSD, Red Velvet, Aespa, TVXQ!, Super Junior, SHINee, EXO, NCT 127, NCT Dream, WayV, and RIIZE, along with soloists Kangta and BoA.
Amid the appeal and popularity of Weverse, the platform has attracted international stars, including Ariana Grande, Dua Lipa, Megan Thee Stallion, and Conan Gray.
Besides music artists and creators, Berriz will also cater to fans of dramas, films, webcomics, and musicals. The name “Berriz” is a play on “berries,” according to Cacao.
“Despite varying sizes and shapes, berries become sweeter together,” Kakao said. “Like berries, Berriz will become a playground where K-cultural fandoms worldwide can connect and share joy beyond genres and borders.”
The announcement from Cacao corroborates earlier reports regarding the company’s potential plans to enter the superfan market. In January, the Korea Joongang Daily reported that Cacao had filed trademarks for “Berriz” and “Berry”, potential names for the upcoming platform.
Cacao explained that Berriz aims to be more than just a communication tool. The platform integrates various functions, including artificial intelligence, commerce, and live broadcasts, allowing IP holders to select projects and services while adapting the structure and offerings for fan communities.
“In simple terms, Berriz aspires to create an optimized community environment—not a one-size-fits-all service—where fans can communicate and enjoy without restrictions,” Kakao mentioned.
Early platform users include the K-Pop group Kiikiii, who started interacting with fans on Sunday (March 24), coinciding with the release of their debut EP Unreasonable Gem.
“Berriz seeks to create an optimized community environment—not a standardized service—where fans can communicate and entertain without restrictions.”
Kakao Entertainment
The South Korean singer Jung Seung-gwan has also opened an exclusive space for US fans as his official fan club.
Next month, Berriz will launch a fan community for the upcoming MBC drama Crushology 101, based on a webtoon that has achieved 170 million accumulated views.
Cacao stated that it would leverage its experience managing various digital platforms, including Cacao Page, Melon, and 1Thek, to create a new fandom culture in collaboration with fans.
Berriz is now available on web and mobile devices, offering support in 18 languages.
SM Entertainment also manages a fan application called Bubble through its DEARU subsidiary.
Kakao is not the only entertainment platform venturing into the superfan market. Last year, Spotify CEO Daniel Ek announced the company would introduce a new Deluxe tier that may include access to Superfan Clubs.
Tencent Music Entertainment, the largest music company in China, is also actively developing its business in this area. The company recently reported significant growth in its paid user base and an improved average revenue per paying user (ARPPU), partly due to the launch of the ‘Super VIP’ (SVIP) tier.
Earlier this month, TME stated that its SVIP tier has gained substantial traction after launching high-quality sound features, including AI-driven audio effects and voice isolation, an expanded library of digital albums, and enhanced benefits for online concerts, such as high-definition modes.
Last month, Live Nation President and CEO Michael Rapino confirmed that the company is in negotiations with Spotify, Apple, and Amazon for access to presale tickets for super-premium subscribers.
Major players in the music industry, such as Universal Music Group and Warner Music Group, are also signaling their intentions to focus on superfans.
“Superfans, who represent the most dedicated 20% to 30% of music listeners, account for over 70% of all recorded music expenditures,” said Boyd Muir, Executive Vice President and CFO of UMG, in September.
Last year, WMG CEO Robert Kyncl announced that the company is developing its own Superfan application.
In July 2023, Goldman Sachs assessed the market opportunities for monetizing superfans, estimating a value of 4.2 billion dollars. The bank later updated its forecast to 4.5 billion dollars for 2024.
