Twitch Shutting Down in Korea Over High Network Fee

Korea's Twitch Dilemma: Shutdown Imminent Due to Hefty Network Fees

When it comes to live streaming, Twitch is a global behemoth. The company, which is under Amazon’s ownership, is the go-to destination for streamers of all kinds, including gamers. Regretfully, the business has stated that it will be closing in Korea. Due to the “prohibitively high” cost of operating the service in Korea, Twitch revealed in a blog post that it will be closing its operations there.

After several years of consideration and effort to find a way to continue operating in Korea, Twitch has decided to end its operations in Korea as of February 27, 2024, Korean time, the company announced.

The company specifically mentioned the hefty network fees in the nation. Major content providers would have to pay to utilize Korean networks, according to laws introduced in the nation. Twitch stated that it tried several cost-cutting initiatives, such as capping video quality at 720p, but still, it is very costly to manage the operational costs.

Although these efforts were able to reduce costs somewhat, the network fees in Korea were 10 times higher than in most other countries, making operations no longer feasible, the twitch mentioned.

Korean users will not be able to buy things on the site after February 27. Additionally, streamers will not be able to make money after this date. In addition, the company said it was talking with other services about moving Twitch communities to those sites. Additionally, Twitch announced that it will be waiving its regulations about simultaneous broadcasting to allow affected creators to distribute connections to their new streaming services and channels.

It is not the first time that a global service provider has been caught up in the rules regarding network fees in Korea. Over several years, Netflix and SK Broadband, a Korean company, were involved in a court dispute regarding usage costs. In September, the two parties ended their dispute.

Check Out: Twitch Introduces Snapchat-Like Stories Feature For Its Mobile App.

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