Soop

SOOP (formerly AfreecaTV) operates a personal live-streaming platform as its core business, generating platform revenue from gift-based donations, subscriptions, and functional items, alongside advertising and content-production revenue.

According to company data as of April 2026, platform revenue accounts for 70.9% of total sales while advertising and content-production revenue makes up 27.6%.

The company expanded its affiliate structure in 2025 by acquiring advertising agency Playd and establishing Bio Essential, broadening group-level marketing and commerce capabilities.

SOOP runs proprietary esports leagues (ASL, GSL) and original content across categories such as gaming, sports, music, and virtual streaming to support its streamer ecosystem.

The domestic competitive landscape was reshaped into a two-player structure with Naver's CHZZK after Twitch withdrew from Korea in 2024, and broadcasting rights for the League of Legends Champions Korea (LCK) are now split between the two platforms.

SOOP has secured partnerships with seven of the ten LCK teams, including T1 and Gen.G, strengthening its position in esports fandom. The company is pursuing overseas content and multilingual support as part of global expansion, though domestic operations still account for the overwhelming majority of revenue.

It has also diversified its content portfolio through a recent collaboration with S27M Entertainment on music content.

SOOP's consolidated revenue rose for four straight years, from KRW 289.09 billion in 2022 to KRW 344.02 billion in 2023, KRW 413.18 billion in 2024, and KRW 466.57 billion in 2025, while operating profit grew from KRW 82.42 billion to KRW 124.84 billion and owner's net income from KRW 59.74 billion to KRW 101.84 billion over the same period.

The operating margin stayed broadly stable in the mid-to-high 20% range, moving from 28.5% in 2022 to 26.3% in 2023, 27.5% in 2024, and 26.8% in 2025.

On a quarterly basis, however, revenue and operating profit peaked in the third quarter of 2025 at KRW 125.86 billion and KRW 36.26 billion (an operating margin of roughly 28.8%), before declining for three consecutive quarters to KRW 116.17 billion/KRW 30.63 billion in Q4 2025, KRW 106.02 billion/KRW 21.22 billion in Q1 2026, and KRW 103.84 billion/KRW 12.63 billion in Q2 2026.

The deceleration was particularly pronounced in the second quarter of 2026, with revenue down 11.2%, operating profit down 57.9%, and owner's net income down 61.1% year-over-year.

By segment, platform revenue fell to KRW 74.1 billion (down 12.3% year-over-year) and advertising revenue to KRW 27.2 billion (down 11.6%), with both major revenue sources declining simultaneously.

On the cost side, fee payments including broadcasting rights rose to KRW 11.4 billion (up 24.4%), streamer support payments to KRW 3.3 billion (up 29.6%), and other expenses to KRW 10.0 billion (up 55.4%), while personnel costs and payment-processing fees edged lower.

Management attributed the second-quarter shortfall to one-off costs from a tax investigation coinciding with strategic investments for second-half growth, and said the one-off costs were fully recognized within the quarter.

Over the most recent four quarters (Q3 2025 through Q2 2026), cumulative owner's net income totaled KRW 87.73 billion, indicating that despite significant quarter-to-quarter volatility, the company has maintained a profitable trajectory on an annualized basis.

Korea's live-streaming market was reshaped into a two-player structure between SOOP and Naver's CHZZK following Twitch's withdrawal in 2024, and industry observers note that competition has shifted from viewer acquisition toward service sophistication and revenue-model diversification.

Reports indicate that CHZZK's monthly active users have significantly surpassed SOOP's, although data from a global viewership tracking firm showed SOOP's total watch time exceeding CHZZK's, producing mixed signals depending on the metric used.

The two platforms signed a five-year agreement with Riot Games covering League of Legends Champions Korea (LCK) broadcasting rights from 2026 to 2030, while Naver separately secured exclusive new-media broadcasting rights for the 2026 FIFA World Cup in North America, intensifying competition for user acquisition through major sporting events.

Some brokerage analysts have raised concerns that SOOP's business model, which relies partly on attracting loyal users through more provocative content compared to rivals, could face negative long-term growth implications if content regulation tightens.

At the same time, other assessments point to SOOP's competitive strengths in community cohesion, built on long-standing streamer-user relationships, a participatory viewing culture, and partnerships with seven LCK teams.

Across the industry, overall streaming-market growth has been decelerating, and both platforms continue to pursue advertising, commerce, and AI-based service diversification to broaden revenue sources.

SOOP is prioritizing new streamer inflow and increased engagement among existing users to drive a second-half earnings recovery.

The company is preparing a system in which existing streamers directly discover and mentor new streamers, along with a 'performance certification system' based on activity and achievements, with details to be disclosed within the third quarter.

On the service side, SOOP plans a full UI/UX overhaul shifting away from a function-centered screen toward richer content experiences, to be unveiled by year-end, alongside enhanced AI-based personalized recommendations and subtitle/chat translation features.

In advertising, the company is pursuing a short-term strategy of boosting ad purchasing power through cross-affiliate collaboration and expanding the platform ad market, alongside a longer-term goal of building an advertising ecosystem where streamers and brands grow together while offering more user benefits.

Management indicated during the earnings call that it will continue investing in traffic generation, including expanded content support, increased streamer subsidies for football content, and strengthening sports content competitiveness through its volleyball team operations.

The company expects operating margin to enter a recovery trajectory in the second half, based on having fully recognized tax-investigation-related one-off costs in the second quarter.

However, the actual effectiveness of the new programs and platform overhaul remains unconfirmed, and outcomes may depend on competitors' responses.