Weverse Controversy Over Mandatory Paid Membership Starting December 1

Weverse, the global fan platform operated by HYBE, is facing criticism for exploiting labels and fans as it introduces a new paid service starting December 1. HYBE has been found to be effectively forcing over 130 music labels to participate in the newly launched “Digital Membership” service.

According to an email exclusively obtained by The Korea Herald from the office of Rep. Lee Jung-mun of the Democratic Party of Korea on October 7, Weverse notified 130 partner labels on September 26 that participation in a subscription-based service called “Digital Membership” would be mandatory starting December 1. The service will primarily offer fans exclusive digital benefits through Weverse and will be applied as a monthly subscription to all artist communities.

This Digital Membership service, which pursues a revenue distribution favorable to Weverse without offering benefits significantly differentiated from the existing paid membership, is becoming a burden for labels on Weverse. Many labels have reportedly expressed the position that the existing membership is sufficient.

[Official Email] Notice Regarding the Launch of Weverse “Digital Membership” Service

We are writing to inform you that we are opening the ‘Digital Membership’ service as a new business for Weverse.

‘Digital Membership’ is a membership service focused on digital benefits that fans can use on Weverse. It will be mandatorily opened in all artist communities entered into Weverse, and fans can subscribe to each community’s membership on a monthly basis to selectively use the digital membership service.

Please refer to the details below for the schedule and specifics, and please check the attached introduction document and contract for more detailed information.

[Weverse Digital Membership]

Service Open Schedule: Planned for opening and sales start on December 3, 2024 (Time TBD)

Service Open Target: To be opened in ALL communities entered into Weverse

Sales Price & Revenue Share Rate: Labels can select the sales price from 2,700 KRW / 3,900 KRW / 5,400 KRW. Users will pay using “Jelly” (in-app currency). (Please confirm the revenue share rate in Article 6 of the attached contract.)

Please confirm the details.

Digital Membership Benefits:

– Removal of video ads

– Offline storage of VODs

– Additional video viewing functions (Voice Emphasis, AI Upscaling, Color Enhancement)

– Digital Membership member-exclusive mark

– Provision of Badges

– Additional Jelly accumulation

– Unlimited transmission of Fan Letters

– Access to membership-exclusive content

– [Optional Operational Benefit] Opportunity to participate in Fan Events (e.g., Pre-sale rights for each region, rights to participate in on/offline events such as open broadcasts)

Regarding the opening of the Digital Membership, we are sharing the following two documents, so please check them.

Digital Membership Contract

A contract is absolutely necessary as the sales revenue of ‘Digital Membership’ is shared with the label.

Please check and fill in the items marked with blue highlights and deliver them to us.

If there are parts that need modification or discussion during the label’s internal legal review, please mark them with a memo within the document and deliver it.

Digital Membership Introduction

Introduction Content: Detailed guide to Digital Membership benefits, Digital Membership sales prices, FAQ (Please make sure to check even the FAQ content).

[Reference Note regarding ‘Fan Letter’]

The ‘Fan Letter’ service included in the basic benefits of ‘Digital Membership’ will operate as follows: As announced in the backstage notice on August 23, 2024, single paid sales will end as of September 30, 2024, 15:00 (KST), and it will be included as a benefit of the ‘Digital Membership’.

The settlement details for the final sales in September due to single paid sales will be delivered in early October.

‘Fan Letters’ will continue to be operated as a ‘Digital Membership’ benefit while providing 3 free transmission rights per month same as before, so the existing ‘Fan Letter Service Basic Contract’ will remain without termination.