This document discusses Afreeca TV, a South Korean live broadcasting service founded in 2006. It has grown profitable with revenues increasing from $0 to over $80 million from 2013 to 2016. Its business models include selling virtual items for special features and advertisements. While it faces competition from search engines, TV companies, and international rivals, Afreeca TV was a pioneer in the live broadcasting space in South Korea. The document predicts challenges from problems with content and many competitors but notes it has established itself through continuous expansion.

1. Sang Hyuk Cho
(cshyuk)

2. Product
Live broadcasting service

3. RevenueandProfit($millions)
$0
$20
$40
$60
$80
Year
2013 2014 2015 2016
Financial Info
• Valued at approx. $215 million
• Profitable? Yes
• Contents expansion - More users - $$$

4. Business Model 1
• Selling online items (75%)
- “Star Balloons”, $1 for 10 balloons
- 60 cents for BJ, 40 cents for Afreeca tv
- For: unlocking special features

5. Business Model 2
• Advertisement
- Pre-roll ad (think of youtube)
- Display ad (banners)
- Contents ad (BJs advertising products)

6. Notable History
• Started out as Nowcom, IT company in 1994
• First company to launch webcam service
• Created lots of entertainment community websites
• Launched Afreeca tv in 2006

7. What’s Hot?
• First to enter the market
• Continuous expansion of contents
• Good focus on target customers

8. Competition is ON

9. Competition is ON

10. Competition is ON

11. Search Engine Companies
DAUM
Naver
TV Broadcast Companies
MBC
SBS
KBS
Intl. Companies
Twitch TV
YouTube
Facebook
- Focus on celebrities
- Serving TV programs on
Internet
- TV programs that involve
real-time live communication
with users
- Focus on Gaming (Twitch,
YouTube)
- Live broadcasting (All 3)
Competition is ON

12. Predictions
• Too many problems (sexual contents, copyrights, etc)
• Too many competitors
• BUT pioneered in many, many areas

13. Questions!?

14. Reference
http://insight.stockplus.com/articles/2358
https://ko.wikipedia.org/wiki/%EC%95%84%ED%94%84%EB%A6%AC%EC%B9%B4TV_(%EA%B8%B0%EC
%97%85)
http://www.hankyung.com/news/app/newsview.php?aid=1997021202191
http://corp.afreecatv.com/
http://www.bloter.net/archives/234795
http://www.afreecatv.com/cooperation/Afreeca_Introduction.pdf
http://finance.daum.net/item/company.daum?code=067160&type=11
http://www.ibtimes.co.uk/what-twitch-how-do-i-make-money-it-1435874
http://electronics.howstuffworks.com/twitch2.htm
http://newsroom.fb.com/news/2016/04/introducing-new-ways-to-create-share-and-discover-live-video-on-facebook/
http://blog.hubspot.com/marketing/facebook-live-guide#sm.000imafkz187ve15tvf29yl77qj1n
http://www.dailydot.com/esports/twitch-streaming-money-careers-destiny/
https://en.wikipedia.org/wiki/Twitch.tv
http://www.businesswire.com/news/home/20120412005443/en/TwitchTV-Launches-iPad-Android-Apps-Expands-Mobile