Categories
Trending

Twitch Shuts Down Business in Korea Due to High Operative Costs

On December 5, 2023, Twitch, the popular live streaming platform, announced its decision to shut down its operations in South Korea. The company cited high operative costs and network fees as the primary reasons for this decision. The closure will take effect on February 27, 2024, leaving many Korean streamers and viewers without a platform.

High Operative Costs

The high cost of operating Twitch in South Korea was a major factor in the company’s decision to shut down. Twitch CEO Dan Clancy stated, “We have spent significant effort working to reduce these costs so that we could find a way for the Twitch business to remain in Korea. However, we have concluded that it is no longer possible for us to operate in Korea in a sustainable manner.”

Several factors contributed to the high cost of operating Twitch in South Korea. One major factor was the high cost of network bandwidth. South Korea has some of the fastest internet speeds in the world, but this also comes with a high price tag. Twitch is a bandwidth-intensive platform, and the cost of delivering high-quality video streams to Korean viewers was simply too high.

Network Fees

In addition to the high cost of network bandwidth, Twitch was also subject to high network usage fees in South Korea. These fees are charged by internet service providers (ISPs) for the use of their networks. Twitch was one of the largest consumers of internet bandwidth in South Korea, and the ISPs were charging the company a premium for this usage.

Impact on Korean Streamers and Viewers

The closure of Twitch in South Korea will have a significant impact on the Korean streaming community. Many Korean streamers rely on Twitch to make a living, and they will now need to find a new platform to broadcast their content. Additionally, many Korean viewers watch Twitch to watch their favorite streamers, and they will now need to find a new way to watch their content.

The Future of Twitch in South Korea

It is unclear what the future holds for Twitch in South Korea. The company has not ruled out the possibility of returning to Korea in the future, but it is clear that the company will need to find a way to address the high cost of operating in the country before it can do so.

Also read: Popular Twitch streamer xQC signs a $100 Million deal with rival platform Kick

Conclusion

The decision to shut down Twitch in South Korea is a major blow to the Korean streaming community. The closure of the platform will have a significant impact on both Korean streamers and viewers. Twitch’s decision to shut down its operations in South Korea is a reminder of the challenges of operating a global business in the ever-changing world of technology.