Twitch Shutting Down Business Operations in South Korea

Twitch to Cease Operations in South Korea

Twitch, the popular livestreaming platform, has announced its decision to shut down its business operations in South Korea on February 27, 2024. The CEO, Dan Clancy, revealed in a blog post that operating in South Korea has become ‘prohibitively expensive’ despite efforts to reduce costs. Twitch had tried various strategies, including a peer-to-peer model for source quality and capping quality at 720p, but the network fees in Korea remain ten times higher than in other countries. As a result, Twitch has been operating at a significant loss and sees no sustainable pathway forward for its business in South Korea.

Impact on the Korean Streaming Community

Twitch acknowledges the impact this decision will have on the Korean streaming community. To ease the transition, the platform plans to assist Korean streamers in finding new homes on other streaming services. Twitch intends to collaborate with competitors in South Korea to support streamers during this challenging period. With approximately 18,500 active affiliates and partners streaming in Korean, the closure will undoubtedly reshape the streaming landscape in the country.

The Future of Esports in South Korea

The closure of Twitch in South Korea is expected to have a significant impact on the esports market. South Korea is a crucial region for games like League of Legends, among other titles. Major publishers, including Riot, will now need to swiftly shift operations and rebuild their platforms elsewhere. Given the scale of this disruption, the esports industry will be closely watching how these changes unfold during the upcoming off-season. In conclusion, the decision to cease operations in South Korea highlights the unique challenges that Twitch faces in certain markets. As the platform looks to prioritize sustainability, it recognizes the need to take tough decisions even in regions with a thriving streaming community. The implications of this move will be felt not only by streamers and viewers but also by the wider esports ecosystem in South Korea.

Source: Twitch plans to shut down in South Korea on February 27, 2024