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HYBE x Universal Music Group Collaboration to Cope with System's Complexity in the Music Industry.

Updated: Jan 31, 2022

Coping with the complex challenges in an industry, we should be open for collaboration with other stakeholders in order to sustain the growth of our business. Through collaboration, we can reach out new stakeholders to expand our network. By doing this, we'll obtain new inspirations and manage to adopt new mindsets to understand and improve our business system, so we can thrive in the industry.

HYBE, a South Korean company that debuted and drove the success of BTS globally, expanded its partnership strategy through collaboration with Universal Music Group. Both companies are very well known in the music industry.

Since the information technology is growing rapidly in this digital era, the business system in the music industry is also impacted. Many key players who are involved in the music industry must initiate collaboration to grow their business in this industry that keeps rapidly growing following the growth of the digital technology.

A collaboration was also initiated by HYBE and Universal Music Group in the early of 2021, where both companies expanded their partnership in the music industry with Geffen Records. These companies collaborate in delivering new record labels in the United States.

Through this collaboration, the three companies improve their business system in the music industry involving technology innovation. This collaboration is hoping to help expanding the K-Pop music and culture through distribution and marketing in the regions other than South Korea, such as the United States and Japan.

Other than distribution and marketing, the other business system that they improve includes the communication channel between artists (idols) with the fans through Weverse app. This is aligned with HYBE's mission to always deliver the best fans experience in enjoying music as well as interacting with their favorite idols.

BTS has been actively using Weverse to interact with ARMY, name for BTS fandom, which soon will be followed by artists from the Universal Music Group.

Another technology that is being utilized in improving the business system through strategic collaboration of HYBE, Universal Music Group, and Geffen Record is Kiswe's platform to enhance fans' experience in enjoying live performance of their favorite idols online. Many idols will conduct online concerts through this platform.

The other system that is not less important to expand the business outreach through this collaboration in the music industry is in the recruitment and debut of new boyband group. The global audition will be conducted in 2022, and will be launched by media partners in the US.

John Janick, Chairman & CEO of Interscope Geffen A&M, explained that their partnership offers incredible opportunity to shape the future of the music industry globally to the benefit of both artists and the fans.

So, what do you think about the strategic collaboration conducted between these three companies to improve their business system in the music industry? Please share your feedback in the comment below.

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