Article at a GlanceIt’s now common knowledge that businesses targeting international K-pop fans can be highly profitable. However, the entertainment industry is equally fierce in its competition, with countless companies silently appearing and disappearing every year. MAKESTAR recognized that while the production and artist development systems for K-pop and other K-content have reached a significant level of maturity, many small and medium sized entertainment companies lack equivalent capabilities in product commercialization and monetization. Focusing on this gap, MAKESTAR devised a technology-driven platform to connect these companies with international fandoms. The platform aids small-scale agencies, which naturally lack sufficient manpower, capital, and market experience or understanding, by helping them escape the “data blind spot.” It supports these companies in planning products that align with changes in fandom behavior, eliminating bottlenecks in payment and delivery processes that disrupt customer experience, and addressing the pain points of “mid-tier idols.” Now, MAKESTAR is striving to evolve into a comprehensive platform that connects multiple fandom clusters, expands its scope, and encompasses even large-scale agencies.
What drives the ever-growing status of South Korea as a “K-content powerhouse”? We can point to many factors, such as the talent, passion, creativity, and authenticity of Koreans, but one essential element cannot be overlooked: “K-competition.” As of late May 2023, the number of officially registered popular culture and arts planning companies in South Korea, commonly referred to as entertainment agencies, totals 4,515.
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This year alone, over 30 companies have closed or temporarily suspended their operations. Considering that the major entertainment companies familiar to the public—such as HYBE, SM Entertainment, YG Entertainment, and JYP Entertainment—barely amount to ten, one can imagine the fierce competition content creators face to break through this narrow gateway.
Moreover, the global success of K-pop, K-dramas, and K-films driven by the Hallyu wave does not guarantee that every artist will meet international fans or that every entertainment company will generate substantial revenue. This is largely because few agencies possess their own channels to directly interact with fans or sell products and services without relying on external social media platforms like YouTube, TikTok, or Instagram. Among the companies that operate global fandom platforms integrating community and commerce functions, HYBE, which manages “Weverse” through its subsidiary Weverse Company, and SM Entertainment, which operates “Bubble (Listen)” through its affiliate DearU, are notable exceptions.
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