"Earning 3.5 Billion Won a Month from Live Broadcasts... AfricaTV Rising on 'Star Balloons'"

Q3 Operating Profit Expected to Increase by 16.91%
Establishing a Domestic Specialized Streamer Ecosystem

Domestic video platform AfreecaTV is expected to achieve strong performance in the third and fourth quarters of this year, supported by the robust sales of Star Balloons. At one point, AfreecaTV seemed likely to be overshadowed by YouTube and Twitch, but despite the economic downturn, it has firmly established itself with a live streaming ecosystem specialized for the domestic market.

According to financial information firm FnGuide on the 17th, AfreecaTV's revenue for the third and fourth quarters of this year is projected to be 92.9 billion KRW, and operating profit is expected to reach 24.1 billion KRW, representing increases of 13.53% and 16.91%, respectively, compared to the same period last year.

Among famous female BJs, there is also Kim Si-won, a former member of the girl group 'GLAM,' who caused controversy for allegedly threatening actor Lee Byung-hun. Kim, who has won the 'AfreecaTV BJ Awards' for two consecutive years recently, is estimated to have earned 2.4 billion KRW in revenue this year alone by receiving 22,247,511 star balloons.
[Photo by Kim Si-won Instagram]

The largest portion of AfreecaTV's revenue comes from 'Star Balloons.' Star Balloons are cash-equivalent items that fans gift to BJs (Broadcast Jockeys) on AfreecaTV. Viewers purchase one Star Balloon for 110 KRW, and BJs receive about 60 to 70 KRW per balloon. AfreecaTV often gives the impression that female BJs, who showcase their figures and dances targeting male viewers in so-called 'female cams,' dominate the platform. However, many of the top Star Balloon earners are actually male BJs.

According to PungToday, a Star Balloon statistics site for AfreecaTV, the BJ who ranked first in Star Balloons in September this year was Commander Jiko. Commander Jiko received 30,857,532 Star Balloons last month, generating approximately 3.4 billion KRW in revenue. Considering the total broadcast time last month was 6 days and 19 hours, this translates to over 20 million KRW in revenue per hour.

Ranked second, Park Funny earned 18,681,391 Star Balloons (about 2.05 billion KRW), and third place Dan Dong Danjang Tae-woo earned 12,903,040 Star Balloons (about 1.42 billion KRW).

Among famous female BJs is Kim Si-won, formerly of the girl group 'GLAM,' who caused controversy for allegedly threatening actor Lee Byung-hun. Kim, who won the 'AfreecaTV BJ Awards' for two consecutive years recently, received 22,247,511 Star Balloons this year alone, estimated to have generated 2.4 billion KRW in revenue.

AfreecaTV's Risk: Dependence on 'Star Balloons'

According to financial information company FnGuide on the 17th, AfreecaTV's sales for the third and fourth quarters of this year are expected to be 92.9 billion KRW, and operating profit is expected to increase by 13.53% and 16.91%, respectively, compared to the same period last year. Photo by FnGuide

Some critics point out that AfreecaTV's revenue structure is overly concentrated in one area, which poses limitations.

Currently, AfreecaTV's platform revenue consists of donation economy gifts and functional items. Donation economy gifts include products such as Star Balloons and subscriptions that viewers can gift to BJs (individual media hosts). Functional items are paid products like Quick View and Quick View Plus, which allow viewers to watch broadcasts without video ads upon entering the stream.

In recent years, AfreecaTV has made efforts to diversify its business to reduce reliance on paid items, as high dependence carries significant risks. For example, if a popular BJ driving revenue becomes embroiled in controversy, it directly leads to a decline in sales. Additionally, if regulatory issues regarding paid items arise, the platform cannot avoid impact. In fact, a few years ago, when news about paid item regulations surfaced, AfreecaTV's stock price was directly affected.

To address these structural issues, AfreecaTV recently acquired digital marketing company CTTD as part of its business diversification and has been strengthening its advertising business capabilities. Furthermore, it is considering changes to its brand identity.