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Twitch, the video streaming service owned by Amazon, has announced that it will be shutting down its operations in South Korea next year due to the high cost of operating, as the company found the market “prohibitively expensive.”
Dan Clancy, the CEO of Twitch, in a blog post, said that the company has been operating in Koreaat a “significant loss,” and Clancy says that there is “no pathway forward” to run the business more sustainably in that country.He further explained that the decision to stop operations in Korea is a “unique” situation.
Streaming platforms, including Netflix, are facing controversy over network usage fees in South Korea. Local internet service providers have accused foreign players of causing traffic disruptions and demanding additional network usage costs. This even led to a legal battle, with Netflix being ordered to contribute to network costs for its Korean business.
According to Twitch CEO Dan Clancy, the company made a considerable effort to reduce the network costs of operating in Korea. Twitch tried a peer-to-peer model to improve the quality of our sources. Then, it set the maximum source quality to 720p to reduce costs. However, despite these efforts. However, the fees to operate in the region is still 10 times more expensive than in most other countries.
Twitch will shut down in South Korea on February 27.
Clancy emphasised that it was a “tough call,” and the company was disappointed that we had to make it. Korea has always and will continue to play a special role in the international esports community, and we are incredibly grateful for the communities they built on Twitch,” he wrote.
As for Twitch streamers in Korea, they may not be able to continue live streaming on Twitch. However, the company will help these streamers switch to alternative live-streaming services. The company says that it is currently in talks with several of these services to ease the transition and will keep the affected streamers informed as these discussions progress.
Dan Clancy, the CEO of Twitch, in a blog post, said that the company has been operating in Koreaat a “significant loss,” and Clancy says that there is “no pathway forward” to run the business more sustainably in that country.He further explained that the decision to stop operations in Korea is a “unique” situation.
Streaming platforms, including Netflix, are facing controversy over network usage fees in South Korea. Local internet service providers have accused foreign players of causing traffic disruptions and demanding additional network usage costs. This even led to a legal battle, with Netflix being ordered to contribute to network costs for its Korean business.
According to Twitch CEO Dan Clancy, the company made a considerable effort to reduce the network costs of operating in Korea. Twitch tried a peer-to-peer model to improve the quality of our sources. Then, it set the maximum source quality to 720p to reduce costs. However, despite these efforts. However, the fees to operate in the region is still 10 times more expensive than in most other countries.
Twitch will shut down in South Korea on February 27.
Clancy emphasised that it was a “tough call,” and the company was disappointed that we had to make it. Korea has always and will continue to play a special role in the international esports community, and we are incredibly grateful for the communities they built on Twitch,” he wrote.
As for Twitch streamers in Korea, they may not be able to continue live streaming on Twitch. However, the company will help these streamers switch to alternative live-streaming services. The company says that it is currently in talks with several of these services to ease the transition and will keep the affected streamers informed as these discussions progress.
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