When it comes to live streaming, Twitch is a global behemoth. Owned by Amazon, the firm is the preferred outlet for streamers of many kinds, including gaming. Regretfully, the business has stated that it will be closing in a crucial region. According to a blog post by the company, the service will no longer be available to Korean users. The company asserts that the services are going to shut down given the high costs of operations in Korea.
The company has announced that the service will end next year on February 27, 2024, Korean time. The company mentioned that they have considered things and put in efforts for the past several years; however, they are no longer operating in Korea.
High network usage fees forced Twitch to leave Korea
In the blog post, the company specifically mentioned the high network fees in Korea. Major content providers would have to pay to utilize Korean networks, according to laws introduced in the nation. According to reports, Twitch has utilized several strategies that could help it lower its costs. The videos were offered with 720p video quality but to no benefit.
The company claims that the costs were slightly reduced but Korea charges ten times more network fees as compared to other countries. For this reason, it is not feasible for Twitch to keep operating in Korea. After the above-mentioned deadline, Korean users won’t be able to purchase through Twitch. On the other hand, revenue couldn’t be generated by streamers from February 2024 onward.
The company added that it was in talks with other platforms about the potential transfer of Twitch communities to them. In order to allow impacted creators to post links to their new streaming channels and platforms, Twitch further stated that it would also be releasing its terms governing simultaneous broadcasting. Well, Twitch is not the only company that has been impacted by the huge network usage fees in Korea. Previously, a years-long legal battle regarding the usage fees was initiated by Korea’s SK Broadband and Netflix which finally settled this September.
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