Moi Corporation, operator of Japan’s TwitCasting live streaming platform, reported first-quarter revenue growth despite a declining user base as competition intensifies in the country’s crowded streaming market.
The Tokyo-listed company posted revenue of ¥1.61 billion ($10.7 million) for the three months ended April, up 1.9% from a year earlier, according to earnings released Wednesday. Operating profit surged 13.2% to ¥51 million ($340,000), while net income climbed 24% to ¥54 million ($360,000).
The growth came as paying users dropped 7% to 67,000, reflecting the changing competitive environment in Japan’s domestic live streaming market. However, average revenue per paying user increased 6.6% to ¥6,942 ($46) monthly, offsetting the customer decline.
Japan’s live streaming sector has seen significant upheaval, with platforms like LINE LIVE shutting down in March 2023 and Mildom ceasing operations last year. Meanwhile, competitors like Pococha have experienced rapid growth of nearly 324% year-over-year, now exceeding 500,000 monthly active users.
TwitCasting, launched in 2013, allows users to broadcast live video from smartphones and has built a following particularly among younger demographics. The platform generates revenue primarily through point sales, where users purchase virtual currency to support streamers.
The company maintained its full-year guidance, projecting revenue of ¥6.61 billion ($44.1 million), up just 0.3% from the previous year. Operating profit is expected to decline 50.2% to ¥115 million ($767,000) as the company invests in competing against larger rivals.
Japan’s live streaming market generated over 2.17 billion hours watched in the first half of 2024, up 39.4% from the previous year, with YouTube and Twitch capturing the majority of growth while smaller platforms lose ground.
The results underscore the challenges facing niche streaming platforms as Japanese viewers increasingly consolidate around major platforms, following their favorite creators rather than staying loyal to specific services.
