17LIVE is a leading pure-play live streaming platform in Japan and Taiwan combined. Its business lines include Liver live streaming, V-Liver live streaming and other businesses such as in-app games and live commerce. 17LIVE is accessible globally and its key operations markets include Japan and Taiwan, with a presence in Hong Kong, Singapore, the US, the Philippines, India and Malaysia. It has cultivated a diverse live streaming ecosystem with dedicated users and many streamers.
1. What is the 17LIVE business about?
17LIVE is a leading live streaming platform enabling real-time interaction between content creators and users. Users can broadcast live video across gaming, music, entertainment and lifestyle categories. Viewers engage through live chat, virtual gifts and other interactive features, fostering community and connection.
We empower human connections and provide creators with monetisation opportunities through virtual gifting, subscriptions, sponsorships and advertising, helping live-streamers turn their passion into a career.
Our vision is to create a dynamic and engaging space for content creators to share their talents and connect with audiences worldwide. We believe in the power of unscripted, unpredictable content and our business is about building a safe and close environment where users can be their most authentic selves. We are dedicated to supporting our users to help turn their dreams into reality online and offline.
2. What are the revenue streams for this industry and 17LIVE specifically?
In the live streaming industry, revenue streams vary across platforms and content types, including subscriptions, advertising and merchandise sales. Our main revenue source is selling virtual points to users, who use them to buy virtual gifts for live-streamers and V-Livers, ensuring effective monetisation.
There is also a multi-channel monetisation model that includes virtual gifting and subscriptions to live-streamers and V-Livers, as well as sales of game equipment and tools within the in-app games. 17LIVE possesses multiple monetisation streams that allow us to be operationally profitable and generate cash flow to support new initiatives.
3. How will 17LIVE’s revenue streams evolve over the next few years?
17LIVE has grown beyond being a live streaming platform. We have built a solid foundation of live streaming operations, which forms the base for new growth initiatives. Our user database and analytical capabilities through AI allow us to generate insights and introduce new initiatives for our audience. 17LIVE has achieved positive ebitda since 2020 and boasts a scalable business model that enables sustainable growth and profitability.
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In the coming years, our sources of growth will continue to be live streaming and our content creators while expanding our live commerce business. Our group’s live commerce offering, OrderPally, saw strong performance in 2023, doubling in annualised gross merchandise value (GMV) and turning into a solid segmental profit. With its successful growth, we have made plans to roll out the platform across Southeast Asia further to diversify our revenue streams.
Southeast Asia is a key new market for us, driven by its live streaming growth potential. We will introduce Japanese and Taiwanese content and merchandise through live streaming, live commerce channels and 17Shop. This expansion is expected to increase revenue from Southeast Asia significantly.
4. How do you attract live-streamers to contract with 17LIVE?
Three key pillars drive success on the platform: A strong user base, deep engagement and a cohesive ecosystem. Gifting drives healthy competition among users, while our in-stream interactive games and user interface enhance engagement. This creates a vibrant community that connects users and fosters a dynamic platform. On 17LIVE, live-streamers can gain access to a large and engaged audience, as our users watch live streaming for 90 minutes daily on average. This can lead to higher earnings through virtual gifts.
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Talent management is crucial to our success. Our team scouts streamers and provides robust support for their growth, including onboarding, hands-on training and guides for streaming. We also assist in expanding their social media presence and recognise their achievements. This holistic approach helps creators develop their brand and audience, allowing them to thrive without handling everything independently.
We recently signed a MOU with mm2 Asia 1B0 to strengthen and amplify our entertainment offerings and production capabilities across Southeast Asia. This enables our live-streamers to gain exposure, reach a broader audience and amplify their presence.
5. How does 17LIVE engage users on the platform?
We unite streamers through online and offline events, fostering community and excitement with live streaming contests focused on content creation and human connections.
17LIVE hosted the inaugural Singapore offline event at the Ritz Carlton Hotel in December 2023, which saw streamers compete for $100,000 in prizes. The event was attended by 50 streamers from Japan, Taiwan, Hong Kong and South Asia. Attendees were shortlisted from a qualifying round that saw over 4,000 entries.
This sets us apart as we integrate online interactions with real-world experiences, amplifying user experience. We also host other offline events, including fashion shows and live concerts.
In Japan, we regularly host V-Liver concerts. We had streamers participate in the Tokyo Game Show 2023, one of the world’s largest gaming events. One of our streamers participated in the Street Fighter 6 battle segment (a licensing partnership with Capcom) and drew immense support from his fans and the audience. V-Liver girls’ group BUSHILIVE, which debuted in July 2023, also performed at the event, while GanGun Girls debuted in early 2024.
6. What is a V-Liver and can you tell us more about this industry?
A V-Liver is a digital avatar, animated and customisable by content creators, representing a live-streamer’s persona or brand in live streaming, gaming and virtual reality. 17LIVE pioneers V-Liver live streaming, uniquely integrating virtual and live-streamers for real-time user interaction, creating an innovative experience. This is a game changer in live streaming, offering an engaging environment. We are crafting a long-term strategic vision to enhance this innovative platform.
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The virtual talent market is experiencing significant growth, with talents diversifying into entertainment activities beyond live streaming. In Japan, V-Livers are a significant revenue source for their interactive video industry. They actively engage in real-life events, merchandise development and collaborations with corporations, a trend that is also gaining popularity in other countries. As technology advances and digital entertainment becomes more prevalent, the opportunities for virtual talents to expand their reach and influence online and offline are enhanced.
Due to their digital nature, V-Livers can attract a global fan base, transcending language and cultural barriers. This expands the reach of interactive video streaming platforms and increases their market presence. V-Livers provides diverse monetisation channels through virtual gifting, merchandise sales and paid subscriptions, generating sustainable revenue streams for both the personalities and the platforms.
7. Tell us more about 17LIVE’s financials in recent years.
In recent years, 17LIVE has demonstrated improvements in profit margins and strong cash flows. In FY2023, we achieved an operating revenue of US$278.9 million ($377.3 million) and a gross profit of US$114.9 million. Notably, our operating income in FY2023 saw a significant increase of 35.8% y-o-y, reaching US$13.8 million, driven by our strategic shift to focus on profitability by targeting quality users over quantity. This resulted in an enhanced operating profit margin, rising from 2.8% in FY2022 to 4.9% in FY2023, showcasing our ability to generate higher profits from our core business operations.
Our gross profit margin has also improved significantly from 34.7% in FY2022 to 41.2% in FY2023, primarily driven by increased revenue from high-margin in-app game sales, optimised payment methods reducing channel costs and enhanced operational efficiency lowering server and bandwidth costs. Although 17LIVE reported a net loss of US$247.9 million in FY2023, this was primarily attributed to non-operating expenses totalling US$258.7 million, driven by non-cash revaluation losses on financial liabilities and one-off despac-related expenses.
Excluding the net effects of these one-off and non-cash expenses, our adjusted operating income has increased by 40.1% y-o-y to US$15.4 million. Adjusted ebitda also showed significant growth, increasing by 26% y-o-y to US$20 million, while adjusted net profit rose by 93.3% y-o-y to US$11 million. Overall, 17LIVE has managed to maintain a healthy financial standing, which positions us well for acquisitive growth opportunities and indicates our company’s financial stability and liquidity.
8. What attracts individuals to become live-streamers?
Key factors include expressing creativity, engaging with the community, building a fan base and monetisation opportunities. As platforms like 17LIVE, Twitch and YouTube Live expand, live streaming is now accessible to anyone with the internet and a device.
Moreover, successful live-streamers can earn a significant income through these channels and provide an array of avenues for monetisation, allowing content creators to turn their passion into a potentially lucrative career. Successful streamers can leverage various monetisation channels and achieve substantial financial success, making live streaming a career option for many aspiring content creators.
9. What targets have 17LIVE set for improving its environmental, social and governance (ESG) performance in the coming years?
17LIVE is dedicated to promoting diversity, equity and inclusion (DEI) by fostering a respectful workplace culture, supporting professional growth, ensuring fair treatment and expanding our board with diverse perspectives to enhance decision-making and inclusivity.
We prioritise employee well-being by promoting work-life balance and a supportive environment. Through small but impactful changes, 17LIVE aims to enhance ESG performance, driving positive social and environmental impact while upholding high corporate governance standards.
10. Why should investors take a closer look at 17LIVE?
The live streaming industry is experiencing significant growth driven by technological advancements and evolving consumer preferences for interactive content. 17LIVE, as a leader in this industry, continues to expand our user base and revenue streams globally, operating in Japan, Taiwan, the US and Singapore. We are also expanding into new geographic markets. Our platform’s ability to attract and retain users from diverse demographics and geographic regions enhances our scalability potential, positioning our business for sustained long-term growth.
17LIVE has also demonstrated strong financial performance, marking improvements in key metrics such as gross profit margin, adjusted ebitda and net profit. Supported by an experienced management team with a proven track record in the technology and entertainment sectors, 17LIVE is well-equipped to navigate the challenges and capitalise on the opportunities presented by the rapidly evolving live streaming industry.
In a high-growth industry with diverse revenue streams, global reach, innovation, strong financial performance and experienced leadership, management believes that 17LIVE is well-positioned for organic and inorganic growth.
Emelia Tan is director of research and FinLit at SGX Group
