Kakao Entertainment to Launch “BERRIZ” This Year, Intensifying Competition with Weverse in K-POP Fan Platform Market

Kakao Entertainment plans to enter the fan platform market on a full scale by introducing a new fan platform named “BERRIZ” within this year. As the global fandom market centered around K-pop expands rapidly, Kakao Entertainment has stated that it is currently conducting internal tests with the goal of releasing “BERRIZ” by the end of the year. A representative from Kakao Entertainment said, “We are preparing a fan platform at the moment, but specific details and timelines have not yet been finalized.” Recently, the scale of global fandoms driven by K-pop has grown sharply. According to data released in 2024 by the Ministry of Foreign Affairs and the Korea International Exchange Foundation, as of December 2023, there were 225 million Hallyu fans worldwide, an increase of approximately 26% compared to the previous year. With this growth in the fandom market, expectations for profitability within the entertainment industry have also risen. However, despite this growth, the traditional business model in the entertainment industry, which relies primarily on album sales, is facing limitations in profitability. According to Circle Chart of the Korea Music Content Association, the sales volume of physical K-pop albums last year was 98.9 million units, a 17.7% decrease from the previous year (120.2 million units). As a result, industry analysts suggest that new revenue generation strategies utilizing high-profit secondary IP such as fan platforms, MD (merchandise), IP licensing, and video content are necessary. Weverse, owned by HYBE — a current leader in fan platforms — continues to show steady growth. As of August last year, Weverse had exceeded 160 million cumulative downloads, with a monthly active user count (MAU) of 9.7 million. In the third quarter of last year, HYBE reported that indirect revenue sources such as MD and licensing, content, and fan club sales totaled 204.9 billion won, a 31.8% increase from the previous year. Lee Kyung-joon, HYBE’s Chief Financial Officer, said, “We will develop Weverse into a comprehensive and advanced platform that brings joy to fans.” On the other hand, Kakao Entertainment has struggled with weak performance in its entertainment division. In the third quarter of last year, Kakao Entertainment’s music business revenue decreased by 8% to 470.9 billion won compared to the same period the previous year, while revenue from its content production division dropped by 12% to 218.7 billion won. Additionally, its subsidiary “Antenna,” in which Kakao Entertainment holds a 57.9% stake, recorded a loss of 2015.86 million won in 2023. Under these circumstances, Kakao Entertainment’s “BERRIZ” is expected to serve as a new breakthrough by positioning itself as an e-commerce-based fan platform that combines broadcasting with merchandise sales. Kakao is expected to offer services differentiated from Weverse by leveraging its own technical capabilities and extensive K-culture IP. Kakao Entertainment possesses competitiveness due to its ownership of various K-pop labels such as SM, Starship, IDAM, Antenna, and IST, as well as actor management companies and drama and film production firms. Based on this, “BERRIZ” is likely to evolve from a platform targeting only singer fandoms into a fan platform covering K-culture as a whole, including actors, dramas, movies, and webtoons. DearU, a subsidiary of SM, already launched and operates the fan communication app “Bubble” since February 2020. A representative from Kakao Entertainment said, “While ‘Bubble’ focuses on one-on-one communication, ‘BERRIZ’ is designed in a differentiated format,” adding that efforts are underway to ensure mutual synergy between the two services.