Naver and Big Hit are planning a joint venture. V Live sales have declined since Big hit pulled out.

[satoori]

[Korea's Times] Naver to launch joint venture with Big Hit Entertainment in US

Naver, the country's leading portal, plans to launch a joint venture with Big Hit Entertainment in the United States this year to run an entertainment business utilizing K-pop stars, according to an industry source, Tuesday.

"The name of the company has not been decided on yet along with the specific date of establishment, but it is likely to be within this year," the source told The Korea Times, asking not to be named.

The two firms are discussing issues regarding ownership percentages of the joint venture, with the talent agency seeking the bigger share, the source added.

Naver and Big Hit Entertainment declined to comment on the matter.

The joint venture, tentatively named "NaverBe," according to another source, will be set up by combining Naver's V Live division with Big Hit Entertainment's beNX, a technology subsidiary that developed its software application "Weverse."

Naver's V Live and Big Hit Entertainment's Weverse provide a live video streaming service that allows celebrities to engage with fans online. The firms have also developed their technology to host various virtual events from live chat sessions to reality shows and K-pop concerts.

Weverse has an e-commerce application Weverse Shop that sells subscriptions for media content as well as BTS-related products and merchandise.

The entertainment firm, which went public on the KOSPI last month, wants to lower its reliance on the K-pop superstar boyband, which is responsible for nearly 70 percent of its profitability. Last year, BTS was responsible for 97.4 percent of the talent agency's revenue.

Its platform operator beNX has cut some reliance from its mother company, but industry watchers say this is not enough.

Big Hit Entertainment needs to invite more K-pop stars to Weverse and for Naver's V Live, to better create synergy with beNX.

V Live has a variety of K-pop bands broadcasting live videos on its platform securing 80 million monthly active users.

In August, Naver invested 100 billion won in SM Entertainment and its subsidiaries to use their celebrities on its V Live platform to attract more global fans. It also signed a memorandum of understanding with CJ ENM to beef up its V Live business. CJ ENM is Korea's No.1 entertainment content provider.

However, its sales were only 27 billion won in the third quarter this year and it is going into the red. Big Hit Entertainment's beNX, on the other hand, posted 140 billion won in sales with a 14 billion won operating profit in the same period.

When the joint venture is founded, it is expected to host online concerts for most K-pop stars in the global market and sell band-related items while inviting fans around the world to communicate with their idols.

[satoori]

4 minutes ago, satoori said:

n August, Naver invested 100 billion won in SM Entertainment and its subsidiaries to use their celebrities on its V Live platform to attract more global fans. It also signed a memorandum of understanding with CJ ENM to beef up its V Live business. CJ ENM is Korea's No.1 entertainment content provider.

However, its sales were only 27 billion won in the third quarter this year and it is going into the red. Big Hit Entertainment's beNX, on the other hand, posted 140 billion won in sales with a 14 billion won operating profit in the same period.

even some of the biggest kpop players can't save naver/vlive...??

 

OT: this lowkey explains why shinee finally joined vlive tho. it's part of navarxsm partnership deal.

 

 

[satoori]

26 minutes ago, satoori said:

When the joint venture is founded, it is expected to host online concerts for most K-pop stars in the global market and sell band-related items while inviting fans around the world to communicate with their idols.

Seems this could compete with Weverse(?) but perhaps they have things worked out to prevent that.

 

Anyways for awhile now it's been clear bighit is developing technology and looking for a company to partner with for streaming their concerts. Bighit's previous successful concerts are streamed on another site [not Weverse].  So this partnership could work out well. More importantly BH now has more leverage to negotiate better terms. Hopefully in the end will benefit their artists. 

Edited November 11, 2020 by satoori
words

[MinnieMax]

21 minutes ago, satoori said:

seems this could compete with weverse(?) but perhaps they have things worked out to prevent that..

 

Seems more like vlive+weverse combo of sorts for western market?  Basically vlive with BTS and all other kpop groups but with Big Hit as the main shareholder
From the look of it Naver seems to be after the traffic and profit that BTS generates. The profit and traffic that migrated and stopped feeding Naver. In a way it probably affected the audience of other groups negatively too (no new fans that were attracted by BTS checking what is Kpop all about + other shows)
It's a 1st that I see something like this, honestly. Interesting 

Edited November 11, 2020 by MinnieMax

[satoori]

17 minutes ago, MinnieMax said:

Seems more like weverse+vlive combo of sorts for western market?  Basically vlive with BTS and all other kpop groups but with BH as the main shareholder
From the look of it Naver seems to be after the traffic and profit that BTS generates. The profit and traffic that migrated and stopped feeding Naver. In a way it probably affected the audience of other groups negatively too (no new fans that were attracted by BTS checking what is Kpop all about + other shows)
It's a 1st that I see something like this, honestly. Interesting 

But Weverse was pushed as a global platform too. There was even articles about Western artists being able to join in the future. However maybe the venture will focus more on the streaming part of Vlive. Concert streaming, general lives, shows and etc. (?) 

Agree it's very interesting. I've learned to expect the unexpected with BH/BTS. Many barriers have been broken. Even Line and Kakao partnered together for the very first time. Everyone wants a piece of [money] pie.

 

 

 

 

_________________________________

 

fyi - This is why BH for the last two years have been adamant about breaking away and showing they can do things on their own - despite all the fight back.

Spoiler

 

One of the main concerns from 50 K-entertainment agencies:

The representatives also discussed how there is a need to set industry standards for charges when it comes to using online platforms. One person noted, “As digital music and online concerts continue to take up a bigger portion of our revenues, there is a need to set better standards for reasonable profit division for online content. Currently, distribution companies and platforms take too much of the profits.” There were also hopes that the government would help support the establishment of global online festivals and other online promotional activities. https://www.soompi.com/article/1408322wpp/industry-representatives-vote-on-best-groups-solo-artists-rising-stars-and-more

 

 

Edited November 11, 2020 by satoori
fyi

[MinnieMax]

15 minutes ago, satoori said:

But Weverse was pushed as a global platform too. There was even articles about Western artists being able to join in the future. However maybe the venture will focus more on the streaming part of Vlive. Concert streaming, general lives, shows and etc. (?) 

Agree it's very interesting. I've learned to expect the unexpected with BH/BTS. Many barriers have been broken. Even Line and Kakao partnered together for the very first time. Everyone wants a piece of [money] pie.

 

 

 

 

_________________________________

 

fyi - This is why BH for the last two years have been adamant about breaking away and showing they can do things on their own - despite all the fight back.

  Hide contents

 

One of the main concerns from 50 K-entertainment agencies:

The representatives also discussed how there is a need to set industry standards for charges when it comes to using online platforms. One person noted, “As digital music and online concerts continue to take up a bigger portion of our revenues, there is a need to set better standards for reasonable profit division for online content. Currently, distribution companies and platforms take too much of the profits.” There were also hopes that the government would help support the establishment of global online festivals and other online promotional activities. https://www.soompi.com/article/1408322wpp/industry-representatives-vote-on-best-groups-solo-artists-rising-stars-and-more

 

 

I don't know how it all will work but from the look of it:
1) social platform
2) with BTS on it
3) and most Kpop act will be on it too

We will have to wait and see. I agree that it was smart. Probably very expensive too (development of a whole new platform), but not that risky (they had the audience) 
In a way Big Hit basically took/is taking the control over.

Edited November 11, 2020 by MinnieMax

[satoori]

18 minutes ago, MinnieMax said:

I don't exactly can guess how it all will work out but from the look of it:
1) social platform
2) with BTS on it
3) and most Kpop act will be on it too

We will have to wait and see. I agree that it was smart. Probably very expensive too (development of a whole new platform), but not that risky (they had the audience) 
In a way Big Hit basically took/is taking the control over.

Good points

I'll admit I thought it was risky initially lol ><. If I remember correctly, in the beginning, I was one of the ones in the main BTS thread sort of weary of Bighit trying to leave Naver and other establishments. Then after the JTBC mess I was even more worried for Bighit future. My favs are impacted by decisions being made. But in the end it's all working out. *breathes*

 

 

SIne note: About #1 - Coincidence or not  Weverse last month rolled out a new feature. Users can now customize their profile and follow one another (similar to twitter) https://twitter.com/weverseofficial/status/1303990488899362816 I've seen quite a few fan artists move over their since BTS seem to upvote them.

Edited November 11, 2020 by satoori
rearranged

[Zhan Rui Sanda]

I wouldn't trust Naver due its shady methods like manipulations caused by them being used to dominate the market.

But then, Big Hit is also managed by smart guys.

So let's see what happens next.

Actually if both of the sides denied to give any comments, then it means they're still in discussions and nothing has been decided. Yet.

 

Edited November 11, 2020 by Zhan Rui Sanda

[satoori]

3 minutes ago, Zhan Rui Sanda said:

I wouldn't trust Naver due its shady methods like manipulations caused by them being used to dominate the market.

But then, Big Hit is also managed by smart guys.

So let's see what happens next.

Actually if both of the sides denied to give any comments, then it means they're still in discussions and nothing has been decided. Yet.

 

true. as of right now it's simply a work in progress.

it could take another year or so before anything is finalized.

bighit likes to take their time with these things. negotiating and etc.

apparently live nation wants to start touring again in summer of 2021 if possible. so perhaps before then something will be announced.

 

[MDS]

Woah Big Hit is being aggressive. I mean... BTS is part owner so, yeah, I like that. 

[Guest]

I guess they realized that BH is not a small company that can be bullied anymore! It has become a company making smart business decisions and that is growing (and gaining a loooot of money)

Regarding Weverse, I'm not surprised it making more traffic than vlive. I find it easier to use, it is a real community for fans (similar to a fan cafe), you can interact with other fans and sometimes with the artists, there is a lot of contents available and not only videos, and it's easy to use for both local korean fans and international fans! And the fact that BTS is not active on vlive anymore is also a big impact.

[baexil]

I also think this is a classic class of the incumbent gets too satisfied with their product and is blind sighted when a better, cheaper, more profitable option sprouts up and takes them down. Not sure if a join venture will make them more efficient though- it seems likely to do the opposite. 

[car door guy]

Lmao Naver tried to lowkey market bully BH by partnering with competition to create a similar platform, and saw the financial loss and went "oops, let's be friends".

Edited November 11, 2020 by car door guy

[hynapia]

24 minutes ago, car door guy said:

Lmao Naver tried to lowkey market bully BH by partnering with competition to create a similar platform, and saw the financial loss and went "oops, let's be friends".

Exactly my thoughts lol

[chuuloveyves]

Vlive sucks now