K-pop in America Transforms from "Music" to "Industry Format"

Evolving Into a Platform for Designing and Monetizing Fandoms
Warning Signs of "K-pop without Korea"

The way K-pop operates in the U.S. market is changing. It is evolving beyond a music genre into a platform-based, multi-layered IP industry that organizes fandoms and connects various industrial consumption channels. The report "Platformization of the U.S. K-pop Market: The Evolution of Hallyu into a Multi-layered IP Industry," published by the Korea Creative Content Agency's LA Business Center on May 29, provides a detailed analysis of this transformation through concrete examples and data.

Cat's Eye

The most notable change is the shift in the production system. The girl group Cats Eye, co-produced by HYBE and Geffen Records in the U.S., demonstrates that K-pop is no longer limited to exporting fully developed artists from Korea to the United States. The final members were selected through the global audition project "The Debut: Dream Academy," and all training, promotion, and fandom-building activities were carried out with the U.S. as their base.

They did not follow the existing U.S. industry practice of releasing songs first and then gauging the market response. From the member selection stage, fans watched the debut process unfold and formed fandoms along the way. The Netflix documentary "Pop Star Academy: Cats Eye" captured this journey, serving as meta-content. As a result, the K-pop production system has been transformed into a format that can be produced within the U.S. music industry itself.

It was also confirmed that the K-pop consumption structure can function without actual idols. The Netflix animated film "K-Pop Demon Hunters" is a prime example. The virtual groups Huntrix and Lion Boys were designed to function just like real K-pop groups.

Still cut from the Netflix animation 'K-Pop Demon Hunters.'

According to music industry data analysis firm Luminate, last year in the U.S., Huntrix recorded 1.8 billion K-pop streaming plays, while Lion Boys reached 921 million. These numbers are on par with real groups such as Stray Kids (1.2 billion) and BTS (892 million).

McDonald's collaborated with the project to launch a promotional campaign across the United States, combining limited-edition menu items, photocards, QR-based digital content, and fandom competition elements. This demonstrated that K-pop’s core value lies not in the actual artists, but in the structure that organizes fandoms and encourages repeated consumption.

The qualitative transformation of the performance economy is also evident. Lisa, a member of Blackpink, will hold the first-ever K-pop artist residency at the Colosseum at Caesars Palace in Las Vegas this November. Unlike a world tour, which moves from city to city, a residency involves staying in a specific city and venue for an extended period, performing repeatedly. This not only generates concert revenue but also encourages consumption across hotels, casinos, restaurants, and VIP packages. It demonstrates that the K-pop fandom is evolving into a mobile consumer group that combines travel and experiential consumption, going beyond local spending.

BLACKPINK Lisa. Photo by Yonhap News

These three cases point in a single direction: K-pop is shifting from an industry that simply sells music to one that designs and monetizes fandoms. It is evolving into a platform-based, multi-layered IP industry that connects performances, brands, commerce, video IP, and digital platforms.

This transformation represents both an opportunity and a risk. Byungho Park, Head of the LA Business Center, noted, "In the U.S., the K-pop production system and fandom operation methods are becoming increasingly localized, and platform companies are starting to utilize K-pop formats independently. This could weaken the industrial leadership of Korean companies."

He emphasized, "Future competitiveness will depend not just on securing popular artists, but on the ability to design and operate fandoms over the long term, connecting them to performances, content, brands, commerce, and digital platforms." He pointed out that strategies should be redefined to leverage K-pop as a strategic asset in the platform-based, multi-layered IP industry and to secure leadership in the localization of these systems.

This content was produced with the assistance of AI translation services.