Twitch is set to close its operations in South Korea on February 27, 2024, citing the prohibitively high operating costs in one of the world's largest esports markets.
Twitch CEO Dan Clancy announced the company's decision in a blog post, citing the significant effort made to reduce network costs but ultimately acknowledging that the fees in Korea remained 10 times more expensive than in most other countries.
"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," Clancy said.
"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," he added.
Challenges Faced by Twitch in Korea
In his blog post, Dan Clancy outlined the challenges faced by Twitch in Korea, including experimenting with a peer-to-peer model for source quality and adjusting the maximum source quality to 720p.
Despite these efforts leading to some cost reductions, the network fees in Korea remained a substantial obstacle. The streaming platform has been operating at a significant loss in Korea, with no viable pathway to sustainable business operations in the country, according to Clancy.
Clancy stressed that the situation in Korea is unique, with operating costs significantly higher than in other countries. He expressed disappointment over the decision and acknowledged Korea's unique role in the international esports community.
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Where Will Korean Streamers Go?
Twitch has plans to support affected streamers in Korea during this transition. Dan Clancy noted that the platform would assist these communities in finding new homes, even if it means moving to alternative live-streaming services in Korea.
Twitch is actively reaching out to other services to facilitate the transition and will keep impacted streamers informed as discussions progress. The announcement has left Twitch streamers in Korea and their communities disappointed, as they have invested considerable time and effort in building their presence on the platform.
Despite closing its operations, Clancy said Twitch aims to maintain its commitment to the Korean esports community by helping them transition seamlessly to other platforms.
For more details and updates, Twitch has directed users to a dedicated help article and invited them to join live streams where community questions will be addressed.
A specific live stream for the Korean community is scheduled on /TwitchKR on December 6 at 9:30 a.m. KST, and another session for the broader audience on /Twitch on the same day at 11 a.m. KST.
This decision by Twitch reflects the complexities and challenges of working in different global markets, particularly in regions where operating costs pose significant financial constraints.
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