Twitch is one of the biggest, if not the biggest, streaming platforms on the internet for every type of streaming content, especially gaming content. Unfortunately, Twitch has recently revealed plans to discontinue its services in South Korea, a decision directly passed down from the directives of Twitch CEO Daniel Clancy.
“We’ve made the difficult decision to shut down the Twitch business in Korea on February 27, 2024 KST,” says Clancy in an official blog post on Twitch.
This news may not be entirely unexpected for those closely monitoring Twitch’s operational choices in South Korea over the past few years. Sustaining services in the region has posed a considerable challenge for Twitch, primarily due to exorbitant operational costs. In 2022, Twitch opted to restrict its maximum video streaming quality to 720p from 1080p due to rising costs from Internet Service Providers (ISPs) in South Korea.
Twitch took further steps by disabling the video-on-demand (VOD) feature in Korea, sparking renewed controversies over network usage fees. Twitch refuted claims that “network usage fees” were the cause, instead pointing to “increased management fees” as the driving factor behind their decision.
Twitch further elaborated that the change comes as part of their effort to find the best alternatives in response to “evolving government regulations.” Fast forward to December 5, 2023, it appears that despite Twitch’s efforts, they were unable to cope with the escalating ISP costs in Korea.
Clancy stated that despite their efforts to reduce costs, network fees in Korea remained ten times more expensive than in the majority of other countries. Ultimately, it’s not Twitch’s fault; the underlying issue lies in the complications created by Korean ISP providers, leading to a substantial increase in the cost of managing Twitch services.
“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,” Clancy says in the blog post.
So what’s the solution to this whole ordeal? Korean streamers can find solace in the fact that Twitch is committed to aiding their transition to alternative live streaming platforms. Twitch has already initiated communication with various relevant services to facilitate a smooth transition for the affected streamers.
Despite the relatively brief three-month notice for Korean streamers to seek alternatives, especially if Twitch constituted their livelihood, there is a sense of comfort in the fact that Twitch hasn’t abandoned them during this challenging period and is actively owning up to the situation.
Clancy later expressed his deep regret in another tweet, conveying his sincere apologies for the unfortunate turn of events and extending his thoughts to the affected Korean streamers
Twitch isn’t the only online platform grappling with challenges posed by Korean ISPs. In the past, telecommunications companies managing internet networks in South Korea found themselves muddled in a significant conflict with global content providers, including Google, primarily due to the same high operational charges.
