Summary
- Revenue Increase: AfreecaTV’s (067160:KQ) card spending and revenue from star balloons and advertising show positive growth trends towards 3Q23.
- User Engagement: Gaming tournaments and personalization strategies have boosted user numbers and platform loyalty.
- Advertising Growth: Significant YoY growth in advertising revenue driven by major corporations.
- Aicel's Data Insights: Card transaction data highlights the recovery and growth in AfreecaTV’s revenue streams.
King of streaming platform
AfreecaTV (067160:KQ), a leading streaming platform in South Korea, has been on a revenue rollercoaster with its primary income streams showing significant fluctuations. This article explores the revenue trends of AfreecaTV using card transaction data and user engagement insights provided by Aicel Technologies.
Revenue Increase and Card Spending
Star Balloon Revenue
AfreecaTV’s main revenue source comes from star balloons, virtual gifts that viewers donate to broadcast jockeys (BJs). The platform earns commissions when BJs convert these gifts into real money. After a decline since 1Q22, star balloon revenue saw an increase in 2023, driven by various gaming tournaments broadcasted on the platform.
Advertising Revenue Growth
AfreecaTV's advertising revenue rebounded in 2Q23, growing by 8.6% YoY after a -19.2% decline in 1Q23. This growth was partly due to the addition of major corporations like Samsung Electronics, Apple, and Hyundai Motor Group to AfreecaTV's client list, dispelling previous concerns about a downturn in the advertising industry.
User Engagement and Platform Loyalty
Gaming Tournaments and Personalization
The surge in user numbers on AfreecaTV is attributed to the broadcasting of gaming tournaments and the platform's effective personalization strategies. These strategies have fostered strong platform loyalty, contributing to steady revenue growth.
Card Transaction Data Insights
Aicel Technologies’ card transaction data indicates a steady increase in spending on AfreecaTV, suggesting a positive trend towards 3Q23. This data highlights the recovery and growth in AfreecaTV’s revenue streams, providing valuable insights for stakeholders.
Future Prospects for AfreecaTV
AfreecaTV’s traffic and revenue trends mirror the gaming market. Major game companies like NCSoft(063570:KS) and Netmarble(251270:KS) are preparing to release new titles, and the resurgence of popular games like MapleStory is expected to further boost the platform’s viewership.
The inclusion of e-sports as an official category in the Hangzhou Asian Games in September is anticipated to significantly increase AfreecaTV’s viewership, driving further revenue growth.
Conclusion
AfreecaTV's revenue growth, driven by increased user engagement and strategic advertising partnerships, underscores the platform's strong market position. Aicel Technologies' card transaction data provides crucial insights into these trends, helping investors and stakeholders understand AfreecaTV's financial dynamics and future prospects.
