AfricaTV Sees User Increase Thanks to Twitch... Star Balloon Revenue Declines Due to Google

Twitch Limits Video Quality, Popular Streamers Move... Expecting Content Diversification
Google Raises In-App Payment Fees, Removes 'Star Balloon' Purchase Feature
Star Balloon Payments Plummet, Causing Revenue Concerns

[Asia Economy Reporter Yuri Choi] AfreecaTV is caught in a dilemma over whether to rejoice or lament due to global operators like Twitch and Google implementing policies related to 'network usage fees' and 'in-app payments.' As Twitch took a stance opposing the 'network usage fee' bill and imposed video quality restrictions, popular streamers migrated to AfreecaTV, increasing traffic. However, with Google removing the 'Star Balloon' purchase feature from its app, revenue declined, causing concern.

“Watch Game Broadcasts on AfreecaTV” in Response to Twitch’s Video Quality Restrictions

According to the IT industry on the 31st, AfreecaTV’s third-quarter traffic slightly increased compared to the previous quarter. Due to Twitch’s video quality restriction measures, Twitch streamers moved to AfreecaTV, increasing popular broadcasts and related traffic. When Twitch limited the video quality of the 'LoL World Championship,' a representative eSports tournament, users wanting high-quality viewing migrated to AfreecaTV.

This month, Twitch restricted the maximum resolution of domestic viewing quality from the previous 1080p to 720p. Twitch stated that costs increased due to the burden of network usage fees in Korea, but the industry interprets this as a form of protest to block the National Assembly’s proposed network usage fee bill.

Since then, the number of Twitch streamers moving to AfreecaTV or operating on both platforms has increased. Especially with AfreecaTV introducing 'Virtual BJs' this month, the so-called 'VTubers' who operate using virtual characters have become more active. Virtual characters were also affected by the video quality degradation, leading Twitch VTubers to propose the introduction of Virtual BJs on AfreecaTV.

Popular VTubers such as voice actor Seoyuri’s VTuber 'Ronarona-ddang,' who has nearly 150,000 Twitch followers, and 'Choi Eunppo' have moved to AfreecaTV. Although currently numbering only in the dozens, including streamers discussing transfers, the company expects the Twitch spillover effect to fully materialize from the fourth quarter. Through this, they anticipate diversifying content, which has been concentrated on a few games like StarCraft, LoL, and FIFA Online, and attracting new users.

Results of Google’s In-App Payment Policy After Half a Year... 7% Decrease in Paid Users

The performance of the main revenue source, Star Balloons, was directly hit by Google’s in-app payment policy, with the number of paying users in the third quarter decreasing by 6.9% compared to the previous quarter. Star Balloons are paid items that AfreecaTV users use to support BJs.

In June, Google mandated in-app payments with commissions of up to 30% on payment amounts. While most companies like Naver and Kakao accepted in-app payments and raised content prices to offset the commission burden, AfreecaTV took the bold step of removing the Star Balloon purchase feature. Although Star Balloons can be purchased on the AfreecaTV website, the inconvenience of having to use a separate payment page has apparently impacted sales, especially among less loyal users. An AfreecaTV official said, "We have conducted payment alert messages and app market migration events, but since it affects light users with low loyalty, we believe a response is necessary."

AfreecaTV is considering various policies to maximize the Twitch spillover effect and increase Star Balloon payments. First, they are discussing technical support measures for Virtual BJs who have moved to AfreecaTV, and are also reviewing whether to partially adopt Twitch’s partnership program. As a way to increase paying users, they are considering an automatic charging system that automatically recharges Star Balloons on a designated date each month or when the number of Star Balloons falls below a certain amount.