Cheese Bi-monthly Report ‘First to Last Mile Communication’

July-August, 2017

Content

Tourism Industry Update..…………P. 3-9

Market Watch ………………….….…..P. 10-14

Case Study……...……………….……....P. 15-23

Media News…….…….....................P. 24-33

About CheeseAd ….……….….……….P. 34-35

Tourism Industry Update

Outbound Departures of Nationals of the Republic of China by Destination, June 2017

Tourism Industry Update

The United Kingdom was the fastest growing destination and the United Arab Emirates was the fastest declining destination for outbound travelers in June 2017.

The number of outbound departures by Taiwan nationals grew 3.44% in June 2017 from a year earlier to 1.41 million, according to the latest Tourism Bureau statistics.

The number of outbound departures by Taiwan nationals grew 6.83% in the first six months of the year from a year earlier.

The fastest growing outbound destinations in June were:United KingdomItalyNetherlands

First Destination June, 2017 June, 2016 Change +-%Jan.-Jun.,

2017Jan.-Jun.,

2016Change +-%

ASIA 1,272,308 1,275,594 -0.26 7,063,498 6,806,394 3.78 Hong Kong 150,348 187,887 -19.98 888,154 1,003,827 -11.52 Mainland China 353,085 321,257 9.91 1,920,911 1,753,477 9.55 Japan 441,965 410,889 7.56 2,322,343 2,230,019 4.14 Korea, Republic of 76,659 85,261 -10.09 435,097 386,374 12.61 Singapore 26,486 30,573 -13.37 162,826 171,151 -4.86 Malaysia 22,978 21,683 5.97 137,529 111,777 23.04 Thailand 51,129 56,212 -9.04 266,960 285,123 -6.37 Philippines 18,837 23,112 -18.50 125,557 111,184 12.93 Indonesia 15,895 15,736 1.01 97,306 87,019 11.82 Brunei 79 2 3850.00 551 377 46.15 Vietnam 43,351 37,861 14.50 273,860 226,275 21.03 Macao 49,553 54,522 -9.11 288,813 293,883 -1.73 Myanmar 1,906 1,534 24.25 13,416 12,369 8.46 Cambodia 6,200 5,087 21.88 37,507 33,199 12.98

United Arab Emirates 5,444 11,829 -53.98 36,505 45,846 -20.37

Turkey 5,106 10,640 -52.01 28,767 44,548 -35.42 Others 3,287 1,509 117.83 27,396 9,946 175.45

AMERICA 68,458 60,223 13.67 344,350 298,281 15.44 United States of America 54,916 49,742 10.40 289,576 255,440 13.36 Canada 12,949 10,481 23.55 50,887 42,841 18.78 Others 593 0 - 3,887 0 -

EUROPE 53,395 17,200 210.44 239,608 72,255 231.61 France 6,987 4,303 62.38 35,217 20,286 73.60 Germany 9,732 5,922 64.34 46,278 24,418 89.52 Italy 4,535 48 9347.92 23,909 48 49710.42 Netherlands 6,112 3,130 95.27 33,452 12,363 170.58 Switzerland 2,725 46 5823.91 6,916 46 14934.78

United Kingdom 5,718 48 11812.50 20,677 48 42977.08 Austria 5,313 3,061 73.57 27,363 14,380 90.29 Others 12,273 642 1811.68 45,796 666 6776.28

OCEANIA 14,924 10,766 38.62 89,500 75,091 19.19 Australia 13,686 9,127 49.95 81,240 66,530 22.11 New Zealand 110 4 2650.00 2,558 184 1290.22 Palau 1,002 1,618 -38.07 4,789 7,846 -38.96 Others 126 17 641.18 913 531 71.94

AFRICA 807 11 7236.36 8,443 70 11961.43 Unstated 821 55 1392.73 4,301 2,420 77.73 Grand Total 1,410,713 1,363,849 3.44 7,749,700 7,254,511 6.83

Note 1: Outbound departure statistics calculated based on first destination of flights and include irregular charter flights. For data on actual Taiwan national arrivals, please see destination country’s official arrival statistics.Note 2: Source: National Immigration Agency, Ministry of the Interior

Outbound Departures of Nationals of the Republic of China by Destination, July 2017

Tourism Industry Update

Italy was the fastest growing destination and Palau the fastest declining destination for outbound travelers in July 2017.

The number of outbound departures by Taiwan nationals grew 5.95% in July 2017 from a year earlier to 1.48 million, according to the latest Tourism Bureau statistics.

The number of outbound departures by Taiwan nationals grew 6.68% in the first seven months of the year from a year earlier.

The fastest growing outbound destinations in June were:ItalyUnited KingdomNetherlands

First Destination July, 2017 July, 2016 Change +-%Jan.-Jul.,

2017Jan.-Jul.,

2016Change +-%

ASIA 1,355,325 1,292,011 4.90 8,418,823 8,098,405 3.96

Hong Kong 160,617 165,958 -3.22 1,048,771 1,169,785 -10.34

Mainland China 362,466 346,297 4.67 2,283,377 2,099,774 8.74

Japan 448,171 409,644 9.40 2,770,514 2,639,663 4.96

Korea, Republic of 79,080 79,681 -0.75 514,177 466,055 10.33

Singapore 37,854 35,130 7.75 200,680 206,281 -2.72

Malaysia 34,797 29,871 16.49 172,326 141,648 21.66

Thailand 52,442 51,037 2.75 319,402 336,160 -4.99

Philippines 22,920 25,752 -11.00 148,477 136,936 8.43

Indonesia 17,267 17,448 -1.04 114,573 104,467 9.67

Brunei 23 18 27.78 574 395 45.32

Vietnam 56,581 51,465 9.94 330,441 277,740 18.97

Macao 56,969 55,577 2.50 345,782 349,460 -1.05

Myanmar 2,154 2,254 -4.44 15,570 14,623 6.48

Cambodia 7,410 6,052 22.44 44,917 39,251 14.44

United Arab Emirates 6,290 6,772 -7.12 42,795 52,618 -18.67

Turkey 5,649 5,346 5.67 34,416 49,894 -31.02

Others 4,635 3,709 24.97 32,031 13,655 134.57

AMERICA 64,369 58,708 9.64 408,719 356,989 14.49

United States of America 52,697 49,953 5.49 342,273 305,393 12.08

Canada 10,993 8,755 25.56 61,880 51,596 19.93

Others 679 0 - 4,566 0 -

EUROPE 44,015 31,908 37.94 283,623 104,163 172.29

France 4,980 4,294 15.98 40,197 24,580 63.54

Germany 8,120 7,257 11.89 54,398 31,675 71.74

Italy 3,747 1,720 117.85 27,656 1,768 1464.25

Netherlands 6,016 3,747 60.56 39,468 16,110 144.99

Switzerland 1,567 1,105 41.81 8,483 1,151 637.01

United Kingdom 5,244 3,249 61.40 25,921 3,297 686.20

Austria 4,811 3,901 23.33 32,174 18,281 76.00

Others 9,530 6,635 43.63 55,326 7,301 657.79

OCEANIA 15,249 14,423 5.73 104,749 89,514 17.02

Australia 13,869 12,745 8.82 95,109 79,275 19.97

New Zealand 143 89 60.67 2,701 273 889.38

Palau 1,088 1,483 -26.64 5,877 9,329 -37.00

Others 149 106 40.57 1,062 637 66.72

AFRICA 1,310 186 604.30 9,753 256 3709.77

Unstated 172 46 273.91 4,473 2,466 81.39

Grand Total 1,480,440 1,397,282 5.95 9,230,140 8,651,793 6.68

Note 1: Outbound departure statistics calculated based on first destination of flights and include irregular charter flights. For data on actual Taiwan national arrivals, please see destination country’s official arrival statistics.Note 2: Source: National Immigration Agency, Ministry of the Interior

Tourism Industry Update

Thai VietJet Air Launches Nonstop Taichung-Bangkok FlightsThai airline Thai VietJet Air inaugurated the first nonstop service between Taichung and Bangkok on July 1. The budget carrier plans to fly between the two cities three times a week (Tuesday, Thursday and Saturday) and will use a brand new 180-seat Airbus A320 on the route.

By being the first in the market to operate this new Taichung-Bangkok route, Thai VietJet Air is hoping to capitalize on the surging growth in travel between Taiwan and Thailand. The airline expects to attract potential travelers in the Taichung area by giving them a more convenient way to get to Bangkok, while also drawing Thai tourists by making it easier for them to explore central Taiwan in depth. (TTN Media, July 1, 2017)

EVA Air, Dream Cruises Offer Unique Air-Sea-Land TourCruise tourism has boomed in recent years, giving leisure travelers more diverse choices. Eager to capitalize on the trend, EVA Airways is partnering with luxury cruise company Dream Cruises and the Hong Kong Tourism Board on a “Genting Dream Hong Kong Holiday” package that gives travelers a complete air-sea-land holiday experience. After flying EVA Air from Taiwan to Hong Kong, travelers seamlessly board the “Genting Dream” to experience luxury at sea, and then get off the ship in Hong Kong to enjoy the city before returning home.

The four-day, three-night package includes two nights on the Genting Dream, one night in Hong Kong, a Taiwan-Hong Kong round trip ticket on EVA Air, and a one-way transfer from Kai TakCruise Terminal to the designated hotel in Hong Kong or Kowloon. Packages start at NT$9,999 per person (not including taxes) for triple room accommodation. (Commercial Times, July 10, 2017)

Tourism Industry Update

Taipei Summer Travel Exhibition OpensThe 2017 Taipei Summer Travel Exhibition being held from July 14 to July 17 has made a grand opening at Hall 1 of the Taipei World Trade Center. This year’s show, which features 280 exhibitors, has two focal points. The first is giving people who have not yet decided where they want to go for their summer vacation a last chance to lock up a great deal. The second is to help potential travelers find early-bird deals for travel from August to November. There are plenty of attractive options, for example, for those interested in arranging travel during the Mid-Autumn or Double Ten holidays. Some 200,000 people are expected to attend the four-day show. (7to.com.tw, July 14, 2017)

Major Travel Agencies Taking Note of Booming Cruise BusinessTaiwan’s surging cruise market is proving highly tempting to publicly listed travel agencies such as Lion Travel and Phoenix Tours. Princess Cruises Taiwan marketing director Chen Hsin-te is bullish on Taiwan’s market and plans to increase capacity by 20% next year. More than 600 cruise liners serving an estimated 1 million people are expected to dock in Taiwan this year, creating a market worth an estimated NT$5 billion. Star Cruises and Princess Cruises have a combined market share in Taiwan of about 70%, with Star catering more to the mass market while Princess positions itself as an international luxury brand.

Star expects to serve nearly 420,000 passengers in Taiwan this year. Princess Cruises uses a slightly different formula to calculate passenger numbers, but based on Taiwan International Ports Corporation standards, it will serve roughly 260,000 passengers in 2017, up about 60% from last year, and it is targeting about 300,000 passengers next year. (Economic Daily News, July 31, 2017)

Tourism Industry Update Prefectures from Sanyo-San’in Area Pushing Tourism

Five prefectures in the Sanyo-San’in (Chugoku) area – Tottori, Shimane,Okayama, Hiroshima, and Yamaguchi – have joined together topromote their tourist attractions in Taiwan. The head of the ChugokuEconomic Federation, Tomohide Karita, said the region has become a“must-visit” destination, with the number of visitors increasing 130%in 2016. The five prefectures feature four world heritage sites, severalworld-class attractions, changing seasons and great food, and theyhope to step up exchanges with Taiwan, he said.

Japan-Taiwan Exchange Association official Hajime Nakasugi saidTaiwanese visitor numbers to Japan rose 5.5% in the first half of 2017to 1.85 million, and Japanese authorities are now focusing onattracting Taiwanese tourists to second- and third-tier cities. Flightsbetween Taipei and Okayama were added last year, and the IchibataGroup set up an office in Taiwan this year, helping bring the ChugokuRegion and Taiwan closer together.(Global Tourism Vision, Aug. 1,2017)

Malaysia to Impose Tourism Tax on Foreign Tourists in September

Malaysian Tourism and Culture Minister Nazri Aziz has announced that a tourism tax will be imposed on foreignvisitors beginning Sept. 1 that is expected to generate 210 million Malaysian ringgit (about NT$1.6 billion) a year inrevenue. Under the plan, foreign visitors staying in any type of hotel room will be charged a tax of 10 ringgit (aboutNT$10) per room per night, but Malaysians and permanent residents will be exempted from paying the tax.

Nazri announced the plan on Aug. 8 after several months of deliberation and debate. It will be administered by theRoyal Malaysian Customs Department under the Ministry of Finance. (CNA, Aug. 8, 2017)

Tourism Industry Update China Airlines Posts Strong Q2 Profit, Has High Hopes for Q3

China Airlines has reported a second quarter profit of NT$1.76 billion. If not for an asset impairment loss of NT$916million related to the disposal of old aircraft, Q2 profit would have been NT$2.68 billion. Analysts believe ChinaAirlines could actually double its profit in the third quarter, helped by a surge in cargo volume after a freight forwarderthat works closely with the airline was contracted by TSMC to handle a plant relocation. They believe the carrier couldsee a profit of NT$3 billion for the year if no black swan event occurs.

According to the airline, the strong showing in Q2 after a NT$3.76 billion loss in the first quarter was due to betterpricing for both freight and passenger services, resulting in part from the dissolution of TransAsia Airways and V Air,which gave a boost to fares and load factors on routes to Japan and South Korea. Also, though fuel costs were up 11%year-on-year, they were actually down 6% from the previous quarter, providing an additional profit boost. New aircrafthelped all its North American and European routes except for New York became profitable, and Chinese routes remainbig money-makers despite a steep decline in inbound Chinese visitors. (Commercial Times, Aug. 15, 2017)

Adding a ‘Smile’ to Travel between Kaohsiung and Bangkok

The Kaohsiung Tourism Bureau has sought to build ties withSoutheast Asian markets and set up direct flights with the region. Inthe latest step in that direction, Thai Airways subsidiary Thai Smilehas decided to launch daily, nonstop service between Kaohsiung andBangkok on Oct. 1. The city expects the new route to boost visitorsfrom Thailand and create new tourism opportunities for both sides.

Thai visitor arrivals to Taiwan were up 58% in 2016 to 190,000, andthe city’s Tourism Bureau said it believes the market hastremendous potential. It plans to take advantage of the “NewSouthbound Policy” to build a customer base in Southeast Asia whilecontinuing to push for more direct flights with the region.

(TTN Media, Aug. 20, 2017)

Market Watch

Market Watch Taiwan to Have Six Holidays of Three Days or More in 2018

The Directorate-General of Personnel Administration has announced that there will be a total of 115 official days off in 2018, including six holidays of three days or longer (including weekends). They are: New Year’s Day (3 days), the Lunar New Year holiday (6 days), Children’s Day and Tomb Sweeping Day (5 days), the Dragon Boat Festival (3 days), the Mid-Autumn Festival (3 days) and 2019 New Year’s Day (4 days.)

SMEs Looking for New Openings; Nearly 70% Using Digital Marketing

An “SME Digital Marketing White Paper” issued jointly by Yahoo Kimo and the National Association of Small & Medium Enterprises has found that 67% of Taiwan’s SMEs are now using digital marketing, with internet marketing tools such as video ads and native ads the fastest growing advertising categories.

According to the White Paper, SME use of video ads and native ads are up 70% and 40%, respectively, from the same period in 2016, rates of growth twice as high as for the use of other internet marketing tools. (CNA, July 6, 2017)

WCIT – A Driver of the Innovation Economy

Known as the “Olympics of the world’s information technology industry, the World Congress on Information Technology (WCIT) will be held at the Taipei International Convention Center from Sept. 10 to 13. Sixteen conferences and events will be held in conjunction with the Congress, and an exhibition of the technologies of the future will be staged in Hall 1 of the Taipei World Trade Center. A B2B matchmaking platform is also in place and one-on-one B2B meetings will be arranged to help vendors drum up new business. One-day industry culture tours to eight cities in Taiwan have also been arranged for Sept. 14 to expose participants to the latest ICT advancements in Taiwan. (United Daily News, July 25, 2017)

Market Watch Private Consumption Up 2% in Q2, Beating Forecast

Private consumption grew 1.99% in Taiwan in 2017 Q2, according tothe Directorate-General of Budget, Accounting and Statistics,topping its May forecast of 1.83% growth. But DGBAS official HuangWei-jie said private consumption momentum remained soft because“people like to go abroad to spend rather than spend in Taiwan.”

Consumption of goods was sluggish in Q2, with new car licensesissued and overall retail sales declining. But consumption of servicesboomed, helped by a 26.32% rise in turnover on Taiwan’s stockmarket and a strong performance by other financial services.Outbound travel numbers rose 7.05% during the quarter, alsoboosting private consumption. (Economic Daily News, July 29, 2017)

Credit card spending in Taiwan continues to soar, reaching NT$295.1 billionin June to set a new monthly record, according to Financial SupervisoryCommission figures. The new historical high largely resulted from incometax payments in May along with Mother’s Day and Dragon Boat Festivalspending later in the month all coming due in June.

Banking Bureau deputy chief Sherri Chuang said credit card spending rose8% in the first half to NT$1.3 trillion and could exceed NT$2.6 trillion for thefull year because credit card usage is usually higher later in the year thanearlier. Credit card spending in Taiwan has risen eight straight years, andChuang said that trend should continue as convenience stores get into theact. Family Mart began accepting Taishin Bank cards last year, and 7-11 willstart taking Cathay United Bank cards next year. (Apple Daily, Aug. 2, 2017)

Credit Card Spending Hits New Monthly High in June

Market Watch

Universiade to Generate NT$11.9 Billion in Business

The 2017 Taipei Universiade is just around the corner and is expected to generate NT$11.9 billion in economic activity. The wholesale and retail trade, food and hospitality sector, and entertainment and leisure sector are all expected to benefit.

In a report on preparations for the Aug. 19-30 Universiade, the Ministry of Education said it would be the largest-scale sporting event ever held in Taiwan, with more than 10,000 athletes and officials from 131 countries participating. Premier Lin Chuan has directed all agencies to give their full support to the event, the ministry said. (Economic Daily News, Aug. 4, 2017)

Taiwan Aging Rapidly, Gap between Seniors, Youths Widening

Senior citizens aged 65 and over accounted for 13.55% of Taiwan’spopulation in July, compared to 13.22% for youths aged 0-14, andthey outnumbered youths by nearly 80,000, the latest InteriorMinistry figures showed. That gap has been widening since seniorsoutnumbered youths for the first time in February.

By region, the birth rate was highest in Taoyuan at 10.10%, followedby Changhua County (9.57%), and Hsinchu County (8.84%). Thelowest birth rates were seen in Chiayi County (5.26%), PingtungCounty (5.39%) and Keelung (5.51%). A total of 110,379 babies wereborn in Taiwan from January to July, down 5.99% from the sameperiod in 2016. (Commercial Times, Aug. 5, 2017)

Market Watch Banks Taking Advantage of ‘Nerd’ Economy; Digital Savings Accounts Booming

Banks are capitalizing on the growing “nerd” economy by promoting accounts that allow people to bank online. As of the end of June, 21 banks in Taiwan had launched digital savings account services, and more than 200,000 accounts had been opened, up substantially from the number that had been opened as the end of last year, according to Financial Supervisory Commission statistics.

A total of 204,377 of the current savings accounts that can be applied for online had been opened as of the end of June, the figures showed. Taishin Bank, Hua Nan Bank and O-Bank were the banks with most online savings accounts. At the end of last year, there were 17 banks offering online accounts and 80,473 accounts opened. (CNA, Aug. 6, 2017)

The Ministry of Labor’s Basic Wage Deliberation Committeehas proposed hiking the monthly minimum wage toNT$22,000, from NT$21,009 at present, and the hourlyminimum wage to NT$140, from NT$133 at present, startingon Jan. 1, 2018. Neither labor nor business representativeswere happy with the outcome, with some business leadersleaving before the end of the 7-hour meeting held to debatethe move.

The move will affect an estimated 2.05 million workers, theMOL said. Among them will be 1.66 million monthly wageearners, including 420,000 foreign workers in social servicesand industry, and 392,000 hourly workers. Business groupssaid the decision will increase their costs by NT$28.14 billion,including NT$19.7 billion from the higher monthly wage, andNT$3.93 billion from the higher hourly wage. Insurancepremiums will also go up. (Liberty Times, Aug. 19, 2017)

Minimum Wage to Go Up to 22,000 a Month

Case Study

2017 Summer Travel Exhibition

Timing Is Everything

The best time to clear summer inventory,

the best chance for autumn early-bird offers.

The travel show of the year

coming in July.

The 2016 Summer Travel Fair drew 250,000 people;

in 2017, we are joining forces again.

CheeseAd – excels at using ads to drum up interest;

Kuei Jung – an exhibition expert that gets big crowds.

The 2017 Summer Travel Exhibition

Get Ready to Be Amazed!

2017 Summer Travel Exhibition

Cruise SectionInternational Cruise Council Taiwan, major sea and river cruise brands, sea and river cruise marketers

Domestic TravelTourist hotels, popular restaurants, theme parks, specialty B&Bs, recreational farms, hot spring and SPA operators, top travel agencies, summer camps, youth tours

International TravelInt’l travel agency tours, overseas tourism promotion offices, airlines, golf holidays, overseas study packages

Taiwan SouvenirsTaiwanese souvenirs, agricultural products, folk handicrafts, tourism factories, distilleries

• Date: July 14-17, 2017

• Venue: Taipei World Trade

Center, Hall 1

• Open from 10 a.m. to 6 p.m.

2017 Summer Travel Exhibition – Attendance

2017 Summer Travel Exhibition – The best place to sell toursMore than 300 exhibitors and vendors this year,

attendance of more than 213,000,received the highest praise from all circles and delivered great results

No. Date Attendance

Day One 7/14 (Friday) 46,000

Day Two 7/15 (Saturday) 54,000

Day Three 7/16 (Sunday) 65,000

Day Four 7/17 (Monday) 48,000

Total Attendance 213,000

Strategic Partners

O.O.H. Advertising

Pre-show Press

Conference

Internet Marketing

Direct Marketing

Ad Campaign

Event Marketing

Public Relations

2017 Summer Travel Exhibition – Ad Strategy

Formed partnerships with domestic media, major public associations and banks to mobilize resources; those marketing resources shared with participating exhibitors, related vendors

One month before the show, used public transportation, public buses, TV ads, street light flags, stand flags as promotional tools

Highlighted topical vendors and products to grab attention and create a buzz, and expand media coverage of show’s scale and offerings

Built exhibition website, created presenceon Facebook; strategic marketing involved

keyword advertising and sent EDMs to publicize show information and themes

Targeted customers: public agencies, top 100 companies, school organizations, industry associations, convenience stores, credit card holders; distributed invitations, special offers, and free coupons to create direct impact, expand campaign’s reach

Information on show communicated through newspapers, TV, professional magazines, internet

Pre-show, opening ceremony press conferences and promotional events; TV, radio, print, internet media invited to help create interest, increase show’s visibility

Public relations campaign centered around hot topics, vendor offerings; promotional and opening ceremony press conferences held

Full Range of Publicity

2017 Summer Travel Exhibition – Great Events

Pre-show Press Conference Opening Ceremony

Sharing Travel Experiences On-stage Activities

2017 Summer Travel Exhibition – Plenty to See

Destination New South Wales Macao Tourism Office

Philippine Department of Tourism

Travel Quality Assurance Association

Sea/River Cruise Area Japanese Food Area

2017 Summer Travel Exhibition – Big Crowds

Attendance over 4 days

exceeds 213,000

2017 Summer Travel Exhibition – Media Coverage

Media Coverage

Media News

The Mobile Live-Streaming Era

The rise of live-streaming platforms Meerkat and Periscope in 2015 sparked a global video live-streaming craze that has spawned a so-called “fans” economy. Even Facebook launched its own live-streaming service in March 2016 to get in on the live-streaming platform market, and short videos could replace written content in the next five years.

Taiwan’s live-streaming market is also very active. Pop singer Jeffrey Huang saw the technology’s potential and launched mobile live-streaming app “17” in July 2015, and it was downloaded 6 million times in less than 3 months.

2016 – Year 1 of Taiwan Live-Streaming Development

“Live-streaming” and “Internet Celebrities” were the catchphrases of 2016. When internet portal Yahoo launched Yahoo TV in August, it hired several well-known people to produce live-stream content and also broadcast e-sports and sports events, hoping to catch the eyes of netizens with top-notch content.

In the second half of 2016, new mobile live-streaming platforms started to pop up, including Live.me, MeMe, and Lang Live. These platforms invested heavily in advertising, wanting to carve out a share of the local market.

2017 – The Live-Streaming War

As live-streaming has grown in popularity, content has become more diverse and competitive. Live-streaming is changing media, e-commerce, sports, entertainment and other ecosystems. But considering how much these platforms have invested, which ones will survive and could there be a bubble? The answers to these questions are worth following closely.

This Cheese Report will introduce the most popular live-streaming platforms and offer insight into trends in the sector based on survey data.

“Live” used to describe TV broadcasts of live news events. But with the rise of mobile devices and 4G internet and the support of social media, the live-streaming craze took off in 2015. Many internet celebrities were born, upending the media ecosystem.

Definition

● Int’l & Chinese live-streaming app platforms

●Top Taiwan live-streaming app platforms

Periscope Live.me Inke

17 Lang Live MeMe

Live-Streaming Milestones

Year Month Milestone

2015

March● Mobile live-streaming platforms Meerkat, Periscope are born . Supported by Twitter’s resources, the platforms attracted celebrities and news media, and the public followed, helping the phenomenon resonate on social networks

July● Pop singer Jeffrey Huang launches the app “17”; it becomes the U.S . Apple App Store’s No. 1 free app and has 6 million downloads by end of September

2016

February●Facebook joins the live-streaming battle, launching a live-streaming function in several countries, including Taiwan

June-July● Asia Innovations Group buys Taiwanese live-streaming startup mimicam; after being acquired, mimicam changes it name to Up.LIVE.

August●Yahoo TV formally launched; stresses self-produced live-streamed news, entertainment, sports and living programming

●Live.me launches traditional Chinese character version

September ●MeMe comes online

October● Lang Live comes online

● Live-streaming pioneer Meerkat pulled from the app store

November ● Instagram formally launches a live-streaming function in the U.S.

December● BIGO holds Taiwan launch press conference

● ETToday news launches a live-streaming news center

2017

January

● KKBOX holds the 12th KKBOX Music Awards and supports VR live-streaming for the first time; plans to hold 10 VR live-streaming concerts in Taiwan, Hong Kong, Singapore and Malaysia to demonstrate VR’s visual effects

● MeMe teams up with record company on a local entertainment platform

March● Banking on live-streaming as a core business, Yahoo TV invests in hardware, creating its first digital studio outside of the U.S. to generate more self-produced live-streamed programming.

June● The app 17 invests NT$30 million to produce its own programming, says it expects to produce 100 hours of content per month

August

● The parent company of the app 17 gets a NT$1.2 billion capital injection and joins with KKBOX to create original content

● LINE adds new live-streaming chat room function and launches it around the world simultaneously

Lang Live bought this O.O.H. ad to attract a young audience

Live-streaming app 17 invested heavily to get exclusive use of ad spaces at the FuXing MRT station.

Comparison of Taiwan’s Live-Streaming Platforms

Company Type of Content When Launched Capital Results Advantages Business Model

LIVEhouse.in General Interest 2014 NT$110 millionMAU 2 million/accumulated viewing time more than 3.5

billion minutes

Has experience streaming more than 1,000 events;

has advanced live-streaming technology

Integrated marketing and technology

services

17 General Living 2015NT$150 million

(Capital registered in Taiwan)

Was once No. 1 ranked free app at Apple App Store/12 million downloads to date

Jeffrey Huang’s personal network in entertainment

circles

Virtual gifts/advertising

Live.me General Living April 2016 UnclearMore than 10 million

downloads in 6 months

Parent company Cheetah Mobile’s product has over

50% share of Taiwan’s Android market

Virtual gifts/e-commerce

UP General Living July 2016 NT$100 millionIncome of platform’s internet celebrities tops NT$1 million, or about NT$20,000 an hour

Asia Innovation s Group resources

Virtual gifts/advertising

MeMe General Living September 2016 Unclear N/AStrategic partner is Inke,

China’s biggest live-streaming platform

Virtual gifts

Lang Live General Living October 2016 NT$23 million N/A Unclear Unclear

AfreecaTV Taiwan Living/Games February 2015NT$41.9 million(Paid-in Capital)

N/APartner is AfreecaTV,

which has biggest market share in South Korea

Virtual gifts/advertising

Twitch Games 2011 UnclearBought by Amazon in 2014

for US$970 million

Comprehensive video platform for gamers; good

for reaching gamers

Subscription/ads/donations/commercial

placements

Camerabay.TV Games/Sports 2013NT$200 million

(WalkGame Corp. paid-in capital)

N/AExperience with live-

streaming of major sports events

Ads/corporatesponsorships

● Source: Digitimes, November 2016 report

Comparison of Integrated Live-Streaming Platforms

CompanyType of

BusinessWhen Launched Type Objective

Business Model

Ads/Special Features

YouTube Video site2011: Live-streaming

2016: Mobile live-streamingPersonal, events, games

Increase user stickiness

AdvertisingStable platform, best live-streamingquality; need at least 100 subscribers to be eligible to live stream

FriDay VideoVideo on Demand

2013 Major events, competitions Customer service N/AFar Eastone Telecommunications resources/use of video platform for strategic marketing

FacebookSocial

Network

August 2015: Blue TickFebruary 2016: Fully

Operational

Famous people, ordinary people

Extend user stay timeVR strategy

Advertising

1.8 billion active users worldwide a month/18 million active users in TaiwanFB uses algorithms to give live streams preference, giving them more exposureLive video post limited to 4 hours

Yahoo TV Web Portal2015: Trial operationsAugust 2016: Formally

Launched

News, finance, sports, livingand entertainment

Brand imageExtend user stay time

Boost ad revenue

AdvertisingCommercialplacement

Taiwan’s main web portal/Yahoo’s technology platform and media resources

LINEInstant

Messaging Software

2015: Official account live-streaming

August 2017: leave-stream chatroom

Official LINE users group chat rooms, multi-person chat

roomsCustomer service Free service

17 million+ active users in Taiwan Group chat rooms, multi-person chat rooms enable broadcasts to 200 people, strong on privacy

With so many live-streaming platforms out there, what kind should be chosen? LIVEhouse.in is Taiwan’s most experienced live streaming platform, having broadcast more than 1,000 events live. LIVEhouse.in suggests

live streaming on multiple platforms simultaneously.Normally, one platform is used at a time to live stream. Those whose priority is quality choose YouTube, those who want a game audience use twitch, and those who want to connect directly with their fans broadcast on their Facebook page. But because of rapid advances in technology, a live feed can be uploaded onto many platforms, enabling users to value quality while reaching a targetaudience and their own fans.

Live-streaming Tips● Source: Digitimes, November 2016 report

Global Live-Streaming Platform Survey

YouTube and Facebook are still the live video kings in Europe and the United States. Worth noting is that Meerkat, which pioneered mobile live streaming in 2015, shut down in the second half of 2016 because it lost the support of Twitter, and other platforms eroded Meerkat’s market share.

China has the hottest live-streaming market in the world. Players in that market are now engaged in a war of attrition as dozens of platforms dropped out or suspended service in the second half of last year. If platforms want to survive, they not only need a deep reserve of capital and resources but also have to figure out how to strengthen their customer “stickiness.”

Ranking of Chinese Live-Streaming Apps

● Source: “China Live-Streaming Apps White Paper” for 2017 H1 prepared by Cheetah Lab and the China Mobile Fan Club

The “internet celebrity economy” has taken off in China, and competition between hosts is fierce. Below is the ranking of most popular apps as of June 2017. Live game broadcasting app Huya.com has been the top-ranked app for two straight quarters.

A “China Live-Streaming Apps White Paper” for the first half of 2017 reported a male to female user ratio of 63%:37%; people 25-30 used live-streaming apps more than any other age group, and 85% of all users had at least a vocational college education.

Taiwan Live-Streaming Survey

● Source: InsightXplorer Issue No. 92

A recent InsightXplorer survey on Taiwanese live-stream users’ viewing habits found that 74.8% watch on their smartphones. In fact, live-streaming’s soaring popularity is due in part to the huge growth in the number of people accessing the internet on mobile devices.

The most common time for watching live streams was 8 p.m.-10 p.m., when 63.3% of viewers watched.

Taiwan Live-Streaming Survey

The main reasons cited for watching live streams were to “kill time” (48.6%) and because the “content is entertaining” (41.3%).

Respondents cited the hosts they most enjoyed watching as “bloggers and internet celebrities” (50.9%) and “entertainers, stars and models” (49%).

Taiwan Live-Streaming Survey

What platforms do Taiwanese use to watch live streams?

83.4% said Facebook, followed by YouTube.

“17” was the most used original content live-streaming platform.

Of those who watched a live stream in the previous three months, over half (50.6%) interacted with the video’s host. The types of interaction included leaving text messages, hitting “like,” or giving points or gifts. Also, males were more likely to interact with the live stream than females, and 30-somethings had the highest rate of interaction of any age group.

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