SGX-listed 17Live wants to be the streaming world’s ‘izakaya’

When 17Live CEO Jiang Honghui thinks of the streamers on his platform, he does not see them as rock stars performing for large groups of fans. Instead, they are more akin to Japanese izakaya chefs hosting dinner for eight to 10 guests at a time.

“That’s the feeling we’re talking about. You go in, the chef knows you, greets you, talks to you,” he tells The Business Times.

However, the concept has yet to be fully appreciated by public markets in Singapore, where the app has no significant presence.

Jiang Honghui is the third CEO to helm 17Live since it completed a de-SPAC in December 2023. / Photo credit: 17Live

Shares of 17Live, which is the only one from Singapore to have listed by way of a special purpose acquisition company, closed at S$0.94 (US$0.68) on January 3 – a fraction of the minimum SPAC listing price of S$5 (US$3.65).

In the six-month period ended June 30, 2024, the company turned in a net profit of US$1.9 million, from a net loss of US$118.2 million in the corresponding period the year before, due to a change in the revaluation of its financial liabilities.

Still, 17Live’s operating revenue fell 33% to US$101.1 million year on year due to a decline in livestreaming revenue and unfavorable foreign currency movement. The company generates revenue largely from Taiwan and Japan.

See also: SGX-listed 17Live posts 26% rise in 2023 adjusted earnings, revenue falls

Jiang acknowledges that 17Live’s strength as a smaller platform for new streamers is also a potential weakness that has led to a decline in the supply of streams.

The platform has typically been seen as a training ground of sorts for new creators. However, they tend to leave for larger platforms when they become more popular – and they often take their audiences with them.

Preventing further loss of streamers

To stem the attrition of streamers, Jiang says that the company is changing its policies this year to make it possible for them to stream on multiple platforms.

During Covid-19, streamers who signed contracts with the company had an exclusivity clause preventing them from having shows on other platforms. This was put in place at a time when 17Live was just one of two players that had livestreaming and virtual gifting offerings, Jiang notes.

Since then, larger players such as TikTok and YouTube have muscled into the livestreaming space as well.

“If you’re the only one which is closed and you’re not the biggest player, the only thing that happens is that more people want to leave, and people cannot return because people don’t want to come back and become locked up again,” the CEO adds.

Tapping virtual influencers