Why the Music Industry Jumps Into the Gaming Industry and Why It Fails
Disclaimer: This post is intended solely for informational purposes and does not aim to disparage any other industry.
According to research conducted by KOCCA (Korea Creative Content Agency), an impressive 80.9% of fans have showcased their commitment by making at least one payment towards their K-Pop fandom.
Online 52.4% / Offline 51.5%
[Fans Who Have Made at Least One Payment]
As per IBK Investment's assessment, the fandom market in Korea is valued at a substantial $6 billion USD, with the following breakdown:
General Audiences = $5.3 billion USD
Light Fans = $0.6 billion USD
Core Fans = $0.1 billion USD
▶ With limited need for further demonstration, one can readily grasp the immense scale and notable success of this industry
In continuation of our previous discussion, we have delved further into the considerable impact of Intellectual Property within the domain of the entertainment industry. This influence serves as one of the primary motives driving music labels, who hold a firm belief in the value of their IP or idol groups, to actively seek entry into the gaming sector of the business landscape. This strategic pursuit has been ongoing for a significant duration.
However, it is imperative not to overlook the fundamental requirement for the product itself to possess inherent appeal that can captivate audiences even before the inclusion of a renowned IP.
📌 Are You Engaging Them Correctly?
What is fandom? Let's start there.
It signifies harboring a level of affection towards a particular someone or something that is notably comparable to or even surpasses that of others. This heightened affinity may manifest in various ways, including the willingness of these fans to go to greater lengths, such as purchasing products, driven primarily by their profound admiration for their artists.
▶ Nonetheless, these products fans are inclined to purchase are typically contingent upon two key factors:
Does it hold a special memory?
Is it something they can retain physically?
While merchandise is readily available online, the items sold during concerts or in-person meetings inherently cultivate deeper emotional connections among fans.
The physical presence of these products allows fans to obtain tangible keepsakes, which serve as cherished mementos and objects for exhibition and exchange within the fan community. Additionally, at times, these behaviors are further reinforced by the prospect of a rare opportunity to closely interact with their idols.
Now, let's shift our focus back to games.
Certainly, there may exist ardent fans who are willing to partake in such additional activities to support their favorite artists. However, it's important to acknowledge that this approach may encounter several potential pitfalls.
ⓐ Lack of Motivation
As per TikTok's data, the total number of K-pop videos on the platform surpassed 97 million as of last September, nearly tripling from 33 million in 2019. TikTok further revealed that over 8 percent of these videos were generated in South Korea.
This data highlights the continuous availability of a vast pool of content for fans to consume. However, when considering engagement with games, the dynamics differ significantly. This suggests that it is improbable for these groups to initiate involvement in an activity that demands additional effort when ample alternatives for consumption are available.
ⓑ Imperfect Replacement
While character IPs may be appealing, they fall short of replacing real humans. These characters serve as supplements and can never fully replace their presence, both online and offline.
📌 So What?
ⓐ You Have To Pick One, and Only One
Taking into account the aforementioned concepts, it ultimately boils down to this.
▶ One of the key underlying reasons for the difficulties and setbacks faced in these initiatives lies in the challenge companies encounter when trying to navigate between two strategic directions: vertical and horizontal expansion.
The crucial initial step necessitates a clear decision regarding whether the intention is to use games exclusively as a marketing tool to enhance the sales of their artists or to establish an entirely new revenue stream.
▶ The problem arises when there is an attempt to simultaneously pursue both objectives.
Engaging with IP holders, whether for internal game development or collaboration with external studios, involves a intricate and time-consuming process. This process primarily revolves around defining how the IP will be portrayed across various media platforms. For instance, when an artist's core audience is rooted in their charisma, negotiations with the label can be challenging, as they may be hesitant to endorse gaming experiences that potentially present their artists in a softer or more adorable manner.
If your primary objective is to engage fans and create additional revenue streams through this supplementary content, it's essential to go beyond just offering a game. Understanding your consumer base thoroughly is crucial for effectively encouraging their purchasing behaviors. Consider offering incentives such as tickets to upcoming concerts or offline meet-and-greets to enhance their experience.
On the other hand, if your main focus is to market your artist, collaborating with an established game in the market can be significantly more effective. However, it's imperative to remain mindful of your target audience. For instance, if your fanbase predominantly comprises female enthusiasts, it's advisable to steer clear of collaborations with games that primarily appeal to male demographics.
📌In Summary
Should you seek a new opportunity in the market, you should always
ⓐ Know Your Audiences and Their Interest
ⓑ Set Your Priority Correctly
