Is Twitch Leaving Korea? Why is Twitch Leaving South Korea?
by P Nandhini
Updated Dec 07, 2023
Is Twitch Leaving Korea?
Twitch, the popular live-streaming platform, is saying goodbye to South Korea due to the high costs of operating in the country. The CEO, Dan Clancy, explained that the network fees in South Korea are about 10 times more expensive than in most other countries, making it challenging for Twitch to sustain its services there.
Despite efforts to cut costs, such as limiting stream quality and testing new models, Twitch has decided to cease all operations in Korea starting February 27, 2024. This decision affects both content creators and viewers, as they won't be able to make purchases or monetize streams on the platform after that date. To help affected streamers, Twitch plans to assist them in transitioning to alternative live-streaming services in Korea, like AfreecaTV and YouTube.
The company acknowledges the impact on the Korean gaming community, expressing regret over the tough decision. Twitch is encouraging creators to use Onsite Messages to share links to other platforms and is open to collaborating with other websites to make the transition as smooth as possible. The move is seen as a response to the prohibitively expensive network fees in South Korea, highlighting the challenges faced by international tech companies operating under specific local regulations and internet traffic taxes.
Why is Twitch Leaving South Korea?
Twitch is leaving South Korea primarily because of the high network fees imposed in the country. The CEO, Dan Clancy, mentioned that these fees are about 10 times more expensive in South Korea compared to most other nations. Despite Twitch's efforts to reduce costs by testing new streaming models and limiting stream quality, the financial burden of operating in South Korea has become unsustainable, leading to the decision to shut down services in the country starting February 27, 2024.
The unique challenges posed by the local regulations and the specific internet traffic tax model, known as the "Sending Party Network Pays" (SPNP), have made it increasingly difficult for international tech companies like Twitch to operate in South Korea at a feasible cost.
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Is Twitch Leaving Korea - FAQs
Twitch is leaving South Korea because the network fees in the country are about 10 times more expensive than in most other nations, making it financially challenging for the platform to operate there.
Twitch will stop its operations in South Korea on February 27, 2024.
After February 27, 2024, content creators won't be able to monetize streams, and viewers won't be able to make purchases on Twitch in Korea.
Twitch tried limiting stream quality and testing new models to cut costs in South Korea.
Twitch plans to help streamers by using Onsite Messages to share links to other platforms and is open to collaborating with websites for a smoother transition.