17LIVE CEO and Executive Director Jiang Honghui
In November 2024, SGX-listed live-streaming honcho 17LIVE Group announced the acquisition of 100 per cent of the outstanding shares of Japan-based N Craft Co to bolster the group’s V-Liver business segment.
Per a statement, both entities will collaborate to enhance the IP talent business, implement innovative initiatives, and jointly develop a new V-Liver production brand.
In this interview, 17LIVE CEO and Executive Director Jiang Honghui discusses more about the deal, the virtual live-streaming industry, and the group’s diversification of revenue streams.
Edited excerpts:
Virtual live streaming is a relatively recent phenomenon. How does it differ from traditional live streaming, and what factors have contributed to its popularity?
Virtual live streaming differs from traditional live streaming primarily in using avatars, digital characters, and immersive virtual environments.
Traditional live streaming typically involves streamers broadcasting in front of a camera, engaging directly with their audience through physical appearance, setting, and personality.
In contrast, virtual live streaming allows content creators to embody digital avatars that interact with the audience in a fully immersive and imaginative manner. This enables streamers to transcend physical limitations and create more dynamic interactions.
Also Read: 17LIVE acquires Japan’s N Craft to enhance virtual talent and content creation
The rise in virtual live streaming can be attributed to technological advancements, particularly in augmented reality (AR) and virtual reality (VR), which have enhanced the immersive experience.
Additionally, the increasing popularity of virtual influencers and gaming culture has significantly made virtual content more appealing to a broader audience.
High-quality content creators are an integral part of your business. What are the primary barriers to entry for new content creators looking to establish themselves in the live-streaming industry? How does 17LIVE work to reduce these barriers and ensure the right quality of content creators comes out on top?
New content creators often face significant barriers when entering the live-streaming industry. These include:
- The need for specialised equipment, such as high-quality cameras, microphones, and lighting.
- Technical skills required for streaming and content creation.
- The challenge of building an audience from scratch in a competitive space.
17LIVE works to reduce these barriers by offering an easy-to-use, technologically advanced platform.
For example, our “V-Mode” allows creators to use virtual avatars with minimal setup, eliminating the need for complex technical configurations.
Additionally, we provide extensive support through content creator development programmes, helping streamers build skills, grow their audiences, and enhance content quality. Through talent nurturing initiatives and strategic marketing, we ensure that high-potential creators can succeed and thrive on our platform.
One of the strategic pillars in your Forward Strategy is revenue diversification. Can you elaborate on the potential revenue streams under development outside of live streaming?
Revenue diversification is a critical component of our long-term strategy and a key pillar of our 17LIVE Forward Strategy. It enables us to build a sustainable business model beyond a single source of income.
One focus area is virtual IP and talent management. We are expanding our virtual influencer business through acquisitions like N Craft and Mikai. This includes creating and managing digital characters, known as V-Livers, who engage with audiences on multiple platforms.
Revenue opportunities include performance events, merchandise sales, and licensing of virtual characters for entertainment and commercial use. For instance, N Craft has over 100 V-Livers in its IP portfolio, while Mikai has 17 high-quality VTubers with millions of subscribers.
Could you elaborate on how you achieved operational efficiencies in the first half while pursuing revenue diversification? Could 17LIVE sustain these operational adjustments moving forward?
In the first half of 2024, we achieved operational efficiencies by streamlining internal processes, integrating advanced technology to automate key functions, and optimising content production. This approach reduced operational costs while allowing us to scale our operations.
Also Read: Streaming the dream: How live streaming technology can increase access to brands
The integration of acquisitions such as N Craft and Mikai has enhanced our content production capabilities and talent management processes, ensuring we can scale quickly and efficiently.
As part of our revenue diversification strategy, we invested in live commerce and virtual IP, requiring efficient operations to ensure profitability. Moving forward, we are confident these efficiencies can be sustained by leveraging technology and automation. Additionally, maintaining focus on high-impact revenue streams will help ensure a strong and sustainable financial position.
Live commerce is a growing segment of your business. Can you talk more about the potential you see in this segment? How much does it contribute to 17LIVE’s revenue in the coming year?
Live commerce combines live streaming with e-commerce, enabling creators to sell products directly to their audiences in real-time.
One key initiative is HandsUP Crossborder, a matchmaking service connecting key opinion leaders (KOLs) with merchants across different markets.
For example, Taiwanese KOLs collaborate with Japanese merchants to sell products to Taiwanese audiences. This cross-border approach expands market reach and creates new revenue streams for KOLs and merchants.
As we continue to expand and refine our live commerce offerings, we anticipate significant revenue contributions from this segment, capitalising on the growing trend of interactive online shopping.
There is a growing trend of Japanese virtual live-streaming platforms expanding globally. How does 17LIVE plan to differentiate its virtual live-streaming offering from competitors in Japan and Asia?
17LIVE stands out by integrating live streaming with virtual IP management. Unlike pure virtual IP houses that focus solely on developing and managing digital characters, we operate as both a live-streaming platform and a hub for V-Livers. This dual capability provides an ecosystem where content creators and virtual IPs thrive together.
Also Read: How AI, AR, and live streaming are changing the online shopping experience
Our platform enables Livers to build virtual identities while benefiting from our growing IP portfolio. Additionally, our offline events allow V-Livers to connect with audiences and celebrities, further elevating their stature. This comprehensive ecosystem positions 17LIVE uniquely in the market.
With a strong cash balance, what are the company’s topmost priorities for cash deployment?
With a strong cash position and zero debt, our top priorities include:
- Expanding virtual IP and talent management businesses, leveraging acquisitions like N Craft and Mikai.
- Enhancing our technology platform to stay at the forefront of live streaming innovation.
- Growing our live commerce initiatives, a major driver of future revenue.
- Pursuing regional and global expansion, particularly in Southeast Asia, where demand for virtual live streaming and live commerce is rising.
These investments align with our 17LIVE Forward Strategy to drive long-term value and sustained growth.
The post The future is virtual: Inside 17LIVE’s plans for avatars and immersive experiences appeared first on e27.