Naver winds down services to bolster AI, commerce businesses
A poster for Naver's new live-streaming platform Chzzk / Courtesy of Naver
Naver refines monetization strategy by converting AI services
Naver is stepping up efforts to streamline its business portfolio by shutting down underperforming or slow-growing services and reallocating resources to artificial intelligence (AI), commerce and other higher-growth digital infrastructure.
The internet giant recently announced that it will shut down its music streaming platform VIBE on Dec. 31, about eight years after its launch in June 2018, with new subscriptions and payments to be suspended from Nov. 27.
The decision comes as VIBE struggled to gain traction in an increasingly competitive domestic music streaming market. According to the market tracker Wiseapp Retail, the platform’s monthly active users fell to 460,000 in June from around 1.5 million in 2023, putting it far behind YouTube Music, Spotify and Melon.
Naver has already shifted toward partnerships with established platforms, adding Spotify’s premium plan to its Naver Plus Membership benefits.
The latest decision follows the company’s broader effort to streamline its service portfolio. The company is also shutting down its video streaming platform, Naver TV, on Sept. 30, moving creators’ videos, subscribers and view counts to its short-form video platform Clip.
The move will refocus its video business on Clip and the new live streaming platform Chzzk, which have gained traction in their respective markets.
In April, Naver also closed its conversational AI service Clova X and generative AI search service Cue:, folding the technology and experience gained from the services into newer search features such as AI Briefing and AI Tab.
Last year, it ended its creator platform, Naver Post, and website-building service Modoo.
Naver Chairman Lee Hae-jin, right, and Nvidia CEO Jensen Huang shake hands after signing a $1 billion strategic investment agreement at Nvidia's headquarters in Calif., July 24 (local time). Courtesy of Naver
The restructuring comes as Naver seeks to monetize AI across its core businesses rather than operate a growing number of standalone services.
Naver CEO Choi Soo-yeon said during the company’s second-quarter earnings call that AI Tab, launched in June, had surpassed 10 million monthly active users as of early August. She added that the click-through rate for shopping and local content on AI Tab exceeded 40 percent, indicating that users’ searches were translating into actual purchases and reservations.
Naver is also expanding AI agents across shopping, maps, real estate and health services, while upgrading its AI-powered search and commerce offerings.
The company is also accelerating its push into AI infrastructure. Last month, it secured a $1 billion strategic investment from Nvidia and named Brookfield its preferred capital partner to raise up to $9 billion for the development of an AI factory.
The company plans to begin operating a 55-megawatt global AI factory in the first half of 2027 and expand capacity to 200 megawatts by 2028, with a long-term goal of reaching 1 gigawatt.