Twitch to terminate South Korean operations in 2024 due to high network fees

Twitch has announced that it will terminate its South Korean operations from February 27, 2024 due to high network fees. Twitch's CEO Dan Clancy revealed that operating costs in South Korea were approximately ten times higher than in most countries, causing substantial financial losses for the Amazon-owned platform.

South Korea's high network fees have posed unique challenges for streaming services, as companies like Twitch are treated as broadcast entities subject to licensing fees based on network usage or broadcasting hours. Despite efforts to reduce costs, such as implementing a peer-to-peer model and decreasing streaming quality, Twitch has been unable to maintain financial viability in South Korea.

Clancy expressed regret for the decision, acknowledging South Korea's significant role in the esports community and the local communities established on Twitch (Korea is particularly giant in games like League of Legends or StarCraft). Due to the overwhelming news of the platform's closure, many streamers have turned to more popular South Korean-based alternatives such as Afreeca TV, or the upcoming NAVER streaming platform, or something more international like YouTube.