Twitch will shut down its streaming platform in South Korea

A prominent video streaming platform has announced plans to cease operations in South Korea next year due to the high costs associated with running the service in the country. The platform, which is part of a larger international online retail conglomerate, has historically been a popular venue for gamers in South Korea, contending with both local and international competitors.

Despite drawing millions of visitors daily around the globe, the platform struggled in South Korea after making changes such as reducing video quality to 720p resolution to cut operating costs. The downgrade resulted in less legible text, prompting users to switch to alternative services. This decision, among other challenges, has led to a weakened presence within the South Korean gaming community.

Costs have been a significant issue, with the platform citing network fees in South Korea as being 10 times higher than in most other countries, leading to substantial financial losses without an evident solution to maintain a sustainable business model there. Consequently, the shutdown of the South Korean business is scheduled for February 27, 2024.

In response to high network usage fees, there have been legal confrontations in the country, such as a streaming company suing a local internet service provider over the obligation to pay these fees. However, the courts upheld the internet provider’s right to receive payment.

The streaming platform’s CEO expressed the difficulties in making the decision to exit the South Korean market, acknowledging the impact on the local streaming community. The company plans to assist South Korean content creators by allowing them to simultaneously broadcast on other services and encouraging the promotion of their channels on alternative platforms.