[Culture Interview] "Unifying the Fragmented Music Market... Super Fans Are the Next Competitive Edge"

Lee Ki-young, CEO of Dreamus Company, is posing ahead of an interview with The Asia Business Daily at Dreamus Company in Gangnam-gu, Seoul, on the 28th of last month. Photo by Kang Jin-hyung

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"Listening to music is not the end of the business, but the beginning."

Lee Ki-young, CEO of Dreamus Company, described the transformation in the music industry in this way. Until now, the core of competition among music platforms has been "how conveniently they can deliver music" and "how many users they can attract." However, he believes that it is now difficult to grow the market if it stops at simply listening. What matters more is a flow where users who listen to music go on to attend concerts, purchase merchandise, participate in fan communities, and look forward to the next release.

In an interview with The Asia Business Daily on April 28 at Dreamus Company's headquarters in Yeoksam-dong, Gangnam-gu, Seoul, CEO Lee stated, "Music, concerts, merchandise, and fandom are all part of a single business," adding, "These functions have been separated for far too long." In his view, music distribution, platforms, and fan business should not be treated as isolated segments, but rather as one continuous flow that encompasses the entire career of the artist.

It has been just over 100 days since he returned to lead Dreamus Company. With the belief that "the first 100 days are critical for setting things up to ensure the next year runs smoothly," he reorganized the company’s structure and direction. Currently, he is focused on explaining the company's strategy both internally and externally to build a broad consensus.

◆Fragmented market, reorganized around fans= According to CEO Lee, the biggest problem in the music industry is "fragmentation." Songs, concerts, and merchandise have all operated separately, and businesses have focused solely on their own segment's performance.

He explained, "Dreamus Company has established the entire value chain from music releases and DSP distribution to marketing and official merchandise," but pointed out, "The problem is that this cycle was disconnected." From an artist’s perspective, it is a single career, but the transaction structure was broken down into one-off revenue streams.

In reality, concerts and distribution were evaluated independently. This structure did not align with long-term artist growth. He stressed, "To support the long-term growth of artists, we must view the entire business and approach it with a unified perspective."

This does not mean denying the importance of streaming. However, the current recommendation algorithm-based structure is strong when it comes to leading listeners "from track to track," but he diagnoses that it has limitations when it comes to expanding the business. He said, "A larger market is created in the process where listeners form deep relationships with artists."

Ki Young Lee, CEO of Dreamus Company, is being interviewed by The Asia Business Daily on the 28th of last month at Dreamus Company in Gangnam-gu, Seoul. Photo by Jinhyung Kang

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The key word is "fan." Rather than simply focusing on subscriber numbers, it has become more important for listeners to turn into fans and for those fan relationships to last as long as possible. He said, "The logic that unites these fragmented businesses is the fan," and emphasized, "The music business will change only if we transition to a fan-centric structure."

◆Integrating fan touchpoints, artists focus on creation= The strategy CEO Lee highlights most is "integration of fan touchpoints." His plan is to connect the entire experience-from listening to music to attending concerts, purchasing merchandise, and participating in communities-into a single flow.

He said, "In the past, two to three weeks of music show promotions were enough, but now, touchpoints have exploded with platforms like YouTube and TikTok," adding, "It has become too difficult for artists to handle all these touchpoints directly." Therefore, there is a need for infrastructure to professionally connect these touchpoints.

He explained, "We need to link album marketing data to concert planning, and integrate membership and community functions to prevent the fragmentation of the fan experience." Dreamus Company’s strategy is to collaborate with specialized companies in each field, while also providing a "full-function view" that allows the entire artist journey to be seen at a glance.

The roles are clearly divided in this process. "Artists should focus on creation and branding," he said. Creation and fandom business are different domains, and he believes specialized expertise is needed to connect them.

He especially emphasized concerts as the core. CEO Lee stated, "The pinnacle of the fan experience is the concert hall," and added, "Concerts should not be seen as one-off profits; they must be planned with long-term career changes in mind."

The strategy for the flagship service, FLO, has also changed. He said, "The goal is not to lock users into FLO," and explained, "We are connecting with external platforms to ensure the artist journey remains uninterrupted." The most recent revamp has also focused on expanding the structure from music listening to fan activity.

Lee Kiyoung, CEO of Dreamus Company, poses before an interview with The Asia Business Daily on the 28th of last month at Dreamus Company in Gangnam-gu, Seoul. Photo by Kang Jinhyung

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◆Global expansion, super fans as the key asset= The starting point of the global strategy is also the fan. CEO Lee recently highlighted "super fans" as the key word in the global music market. He analyzed that, worldwide, the trend is to expand revenue structures centered on fans who form deep relationships with artists, going beyond simple listening.

The shift in the status of the Korean market is also an opportunity. He said, "There are more cases where foreign artists prioritize Korea when planning Asia tours," adding, "As the strategic value of Korean fans has increased, global partnerships have become more important."

The perception of artist intellectual property (IP) is also changing. He stated, "Artist IP belongs strictly to the artist," and "We are entering an era where careers can continue into their 50s and 60s." As a result, the importance of infrastructure such as data, global concerts, and merchandise planning is also growing.

Regarding AI, he described it as an "opportunity." He believes that delegating repetitive work and creative support to AI can increase efficiency. However, there are clear limits. He drew a line, saying, "There are no artists or emotional connections with fans in AI-generated music."

Music created within specific eras and contexts-and the relationships it forms with fans' lives-cannot be replaced by technology. He emphasized, "Ultimately, the essence is the relationship between artist and fan," and "Dreamus Company’s role is to expand that bond throughout the artist’s entire career."

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