After years of struggles due to the high cost of operating in South Korea, the well-known video streaming website, Twitch, said on Tuesday that it will be discontinuing its services in the country by February 2024. According to viewers, Twitch remains one of the most well-liked gaming platforms in South Korea, competing with major competitors like YouTube and local platforms like AfreecaTV. According to the company, there are over 35 million daily visitors to the service, which Amazon.com owns.
In South Korea, competitive gaming is way more prevalent than in many other regions and top players enjoy borderline celebrity status due to the popularity of esports. Fever for esports has over 50 million admirers nationwide where South Korea hosts several major tournaments each year and is the global leader in competitive gaming, particularly for games like League of Legends and Starcraft. As one of the most popular markets for the streaming service, Twitch has millions of users in South Korea, leaving fans stunned at Twitch's decision.
Also read: GTA 6 Trailer Revealed: Who Are The Main Characters In The Next Grand Theft Auto Game
Twitch CEO Announces Withdrawal From Korea in February 2024
Twitch has announced that it will cease all its operations in South Korea by February 27, 2024 due to the "prohibitively expensive" nature of operating in one of the biggest esports regions globally. According to Twitch CEO, Dan Clancy, the company made a "significant effort" to lower its network expenses in Korea. Still, in the end, operating costs in the East Asian nation remained ten times higher than in the majority of other nations.
A blog post by Twitch CEO, Dan Clancy reads:
This morning, I shared with our community in Korea that we’ve made the difficult decision to shut down the Twitch business in Korea on February 27, 2024 KST. 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. To all of our global communities, we want to make it clear that this is a unique situation. Operating costs in Korea are significantly higher than they are in other countries and we have been open about this challenge for some time. I want to reiterate that this was a very difficult decision and one we are very disappointed we had to make. Korea has always and will continue to play a special role in the international esports community and we are incredibly grateful for the communities they built on Twitch.
According to Clancy, Twitch experimented with a peer-to-peer architecture and ultimately lowered the quality of streaming to 720p video resolution to reduce its network costs. These measures reduced the company's network expenses, but they weren't enough. The streaming service, which is owned by Amazon, stated that it has been operating in Korea at a substantial loss and that there is now no sustainable strategy to grow the company there.
On December 5, Twitch CEO Dan Clancy released a statement stating that the business was hemorrhaging money in the country for a while. The country's Twitch streamers will receive assistance in moving their fan bases to other platforms, but as of February 27, 2024, Amazon's streaming service will no longer be available in Korea.