Twitch CEO Dan Clancy recently announced that Twitch will be discontinuing its services in South Korea, effective February 27, 2024.
According to Clancy, the high cost of providing services in South Korea has been a significant factor. In recent times, the company has tried various methods to reduce these costs, including utilizing peer-to-peer connections and maximizing video resolution at 720p. However, network connection expenses in South Korea are up to 10 times higher than in other countries. As a result, Twitch’s operations in South Korea have been running at a loss, with no viable solution in sight to turn it into a profitable venture. Hence, the decision to shut down the services altogether.
Clancy emphasizes that this issue is specific to the region and extends gratitude to the South Korean streamers who have contributed to building a community network on Twitch. While Twitch does not specify the sources contributing to the exorbitant costs, it is presumed to be related to the internet service providers who can charge additional fees for higher bandwidth usage. Similar cases have been witnessed with Netflix.
In conclusion, Twitch’s impending closure in South Korea is a result of the unsustainable operational costs unique to the region. The company plans to support streamers in finding alternative platforms, collaborating with other live-streaming service providers to ensure a smooth transition.
TLDR: After facing high operational costs and a lack of profitability, Twitch is shutting down its services in South Korea by February 27, 2024. The company appreciates the support of South Korean streamers and intends to help them find new platforms for their content. The exact reasons behind the high costs remain unspecified, but they are believed to be related to the country’s internet service providers.
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