The stock price of SOOP (formerly Africa TV) fell at the beginning of trading on the 6th, amid securities firms' projections that the live streaming industry may shrink.
As of 9:56 a.m. on that day, SOOP was trading at 84,300 won, down 8,700 won (9.35%) from the previous trading day.
This was interpreted as a result of a 'sell' report released that day, leading to a surge in sell orders. On the same day, Mirae Asset Securities adjusted SOOP’s target price down from 140,000 won to 82,000 won, presenting an investment opinion of 'sell.'
The rise of short-form videos has greatly contributed to the live streaming industry entering a decline phase. Mirae Asset Securities noted that there is also no clear advantage in competition with Chijijik.
Lim Hee-seok, a researcher at Mirae Asset Securities, said, 'Since the emergence of short forms, the decline of the domestic and global live streaming market has become apparent. The number of monthly active users (MAU) of the global number one platform Twitch has been decreasing each year, with Twitch's MAU estimated to have dropped 12% year-on-year last year, and the average monthly viewing time decreased by 24%.'
Lim added, 'While there is market expectation for the global simultaneous broadcast of sensational content, there are limitations due to relatively weaker positioning compared to other global platforms, a low payment retention rate, and the possibility that domestic streamers may migrate to other platforms, so SOOP's advantages are not significant.'