In a surprising announcement, Amazon-owned streaming platform Twitch has announced that it will shut down operations in South Korea effective February 27, 2024. The company cited a “prohibitively expensive” operating costs and network fees as the primary reasons for this decision.
Twitch has been operating in Korea for several years, but it has faced ongoing challenges due to the country’s high network usage fees. These fees, which are significantly higher than in other countries, have made it difficult for Twitch to operate profitably in the country.
In an effort to reduce costs, the company experimented with peer-to-peer streaming and also limiting stream quality to 720p, but Twitch’s financial burden of operating in Korea is still 10 times more expensive than in most other countries.
This decision is a significant blow to the Korean gaming community, which has relied on Twitch as a platform for streaming and watching esports competitions. Twitch has also been a valuable source of income for many Korean streamers, who will now need to find alternative platforms to broadcast their content.
The shutdown of Twitch in Korea is a reminder of the challenges faced by global technology companies operating in countries with high network usage fees. It also highlights the importance of Korea’s internet service providers in ensuring that the country remains an attractive destination for technology companies.
The closure of Twitch in Korea is expected to have a significant impact on the country’s gaming community. Twitch has been a popular platform for Korean gamers to stream their gameplay and watch esports competitions. With Twitch gone, Korean gamers will need to find alternative platforms to watch and participate in the gaming community.
There are several alternative streaming platforms exist for Korean gamers, including YouTube Gaming, AfreecaTV, and Kakao TV. However, these platforms do not have the same global reach as Twitch, and they may not be as popular among Korean gamers.
It is unclear what will be the future of Twitch in Korea. The company has not ruled out the possibility of returning to Korea in the future, but it is unclear when or if this will happen.
In the meantime, Korean gamers will need to adapt to a new streaming landscape without Twitch. It is possible that the closure of Twitch could lead to increased popularity for other streaming platforms in Korea. However, it is also possible that Korean gamers will simply watch and participate in the gaming community less often.
