Twitch is to leave Korea due to steep network fees
Twitch will be no longer in Korea from February 27, 2024, due to "operating at a loss".
Dan Clancy, the CEO of the live-streaming service, insists the team did everything possible to try and reduce expenses due to steep network fees in the country, however, it ultimately became an unviable venture.
He explained in a blog post on Tuesday (05.12.23): "This morning, I shared with our community in Korea that we’ve made the difficult decision to shut down the Twitch business in Korea on February 27, 2024 KST. We understand that this is extremely disappointing news, and we want to explain why we made this decision and how we are planning to support those impacted.
"Ultimately, the cost to operate Twitch in Korea is prohibitively expensive and 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. First, we experimented with a peer-to-peer model for source quality. Then, we adjusted source quality to a maximum of 720p. While we have lowered costs from these efforts, our network fees in Korea are still 10 times more expensive than in most other countries. Twitch has been operating in Korea at a significant loss, and unfortunately there is no pathway forward for our business to run more sustainably in that country."
Clancy has vowed to find "new homes" for Twitch streamers, "regrettably", with rivals in Korea.
The two remaining services are AfreecaTV and Naver.
He continued: "To all of our global communities, we want to make it clear that this is a unique situation. Operating costs in Korea are significantly higher than they are in other countries and we have been open about this challenge for some time.
Twitch streamers in Korea have devoted significant time and effort into building their communities, and we plan to help these communities find new homes — even if it’s regrettably not on Twitch. We will work to help Twitch streamers in Korea move their communities to alternative livestreaming services in Korea. We are also reaching out to several of these services to help with the transition and will communicate with impacted streamers as those discussions progress."
He signed off the post: "I want to reiterate that this was a very difficult decision and one we are very disappointed we had to make. 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."