Vertex Technology Acquisition Corp (VTAC) is a special purpose acquisition company (SPAC) listed on SGX on 20 January 2022 at the IPO price of the SPAC. On 2 October 2023, VTAC proposed to acquire 17LIVE Inc by issuance of new shares. Established in 2015, 17LIVE Inc (17LIVE) is a pure-play live streaming platform with its main markets in Japan and Taiwan. Revenue is generated from revenue sharing in Liver live streaming and V-Liver live streaming. It commands a market share by revenue of 20.8% in Japan and 26.9% in Taiwan in 2022, according to Frost & Sullivan. The content database encompasses a range of genres including music, games, education, fashion, art, chatting, handcrafting, lifestyle and cooking.
Phillip Securities Research was appointed by SIAS and received monetary compensation from SIAS to provide independent research on the de-SPAC of Vertex Technology Acquisition Corporation Ltd.
The predominant source of revenue for 17LIVE is derived from the sale of virtual gifts and subscription plans. Revenue will only be recognized upon the streamer receiving the gift and virtual coins and expiry of the coins (1 year after purchase). The monetisation process kicks off with live stream viewers purchasing virtual gifts for their favoured streamers. These virtual gifts can then be sold back to the platforms by the streamers, setting the stage for a revenue-sharing model based on an agreed-upon ratio.
The second segment involves interactive video streaming companies generating revenue through the sale of user subscription plans, offering users exclusive content and privileges in exchange for a recurring fee.
In the third segment, platforms can efficiently capitalise on their reach by providing digital advertising spaces to brands that align with their target audience, creating opportunities for targeted marketing.
FY21 revenue reached US$497.8mn (+21% YoY) driven by user growth during COVID. However, there was a decline in FY22 (-26.9% YoY) due to a shift towards quality users. Quality users are defined by 17LIVE as those who have consecutively viewed a specified live streamer’s content over 320 times in total. It was unclear why 320 was the number used.
Liver live streaming contributes over 97% to total operating revenue in FY22 (Figure 1). The V- Liver streaming industry is a potential growth catalyst for 17LIVE. It should expand from its modest 1% contribution to 2022 revenue.
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Paul has 20 years of experience as a fund manager and sell-side analyst. During his time as fund manager, he has managed multiple funds and mandates including capital guaranteed, dividend income, renewable energy, single country and regionally focused funds.
He graduated from Monash University and had completed both his Chartered Financial Analyst and Australian CPA programme.
