Updated: Twitch to shut down in Korea over ‘prohibitively expensive’ network fees

[John Elden Ring]

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Twitch is planning to shut down its streaming platform in South Korea next year.

In a blog post shared on Tuesday, CEO Dan Clancy announced that Twitch would close in the country on February 27, 2024, due to high operating costs. Clancy shared that the company tried various tactics to reduce costs, such as adjusting source quality to 720p.

While we have lowered costs from these efforts, our network fees in Korea are still ten times more expensive than in most other countries," he wrote.


Unfortunately there is no pathway forward for our business to run more sustainably in that country.

 

[Gamernyc78]

Twitch to shut down in Korea over 'prohibitively expensive' network fees | TechCrunch

Twitch, the popular video streaming service, plans to shut down its business in South Korea on February 27 after finding that operating in one of the Twitch plans to shut down its business in South Korea after network costs became "prohibitively expensive" in the leading esports market.

techcrunch.com

Twitch, the popular video streaming service, plans to shut down its business in South Korea on February 27 after finding that operating in one of the world’s largest esports markets is “prohibitively expensive.”

Twitch CEO Dan Clancy said the firm undertook a “significant effort” to reduce the network costs to operate in Korea, but ultimately the fees to operate in the East Asian nation was still 10 times more expensive than in most other countries. The ceasing of operations in Korea is a “unique situation,” he wrote in a blog post.

South Korea’s expensive internet fees have led to legal fights – streaming giant Netflix unsuccessfully sued a local broadband supplier last year to avoid paying usage charges, but Seoul’s court ruled that Netflix must contribute to the network costs enabling its half-billion-dollar Korean business.

Twitch attempted to lower its network costs by experimenting with a peer-to-peer model and then downgrading the streaming quality to 720p video resolution, Clancy said. While these efforts helped the firm lower its network costs, it wasn’t enough. The Amazon-owned streaming service said it has been operating in Korea at a “significant loss,” and there was “no pathway forward” to run the business sustainably in the country.

“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,” wrote Clancy.

Esports is huge in South Korea, with pro gaming a cultural phenomenon and top players enjoying celebrity status. Over half the country’s 50 million population are esports fans. South Korea dominates competitive gaming worldwide, especially in titles like Starcraft and League of Legends, hosting multiple major tournaments annually. Twitch had amassed million of users in South Korea, which was also one of the popular markets for the streaming service.

Like South Korea, telecom operators in many other markets are beginning to push for content providers to pay for network costs. Telecom operators in India, the second largest wireless market, recommended earlier this year that internet companies compensate them for using the networks. Network operators in India cited the regulatory changes in Korea as one of their inspirations.

 

[KiryuRealty]

kekekekekekekekekekekekeke

 

[TubzGaming]

 

[historia]

Couldn't you stream Youtube?

What is the difference, I don't understand? Do they pay lower or nah?

 

[TubzGaming]

Couldn't you stream Youtube?

What is the difference, I don't understand? Do they pay lower or nah?

Moving platforms can work but like 95% of the time most people fail at it, look at Ninja when he went to Mixer (but he did get a nice chuck of cash for doing it) and was getting around 400-500 viewers.
A lot of the switches that have happened is when peoples contracts ran out and got a new one on another platform with money up from to cushion the start of as they know numbers will be low.
Only the streamers that can pull in a lot of viewers consistently have a increased "chance" in it working out
Only a select few streamers have succeeded in it.