Twitch CEO Dan Clancy announced the upcoming closure of Twitch operations in South Korea. The decision, set to take effect on February 27, 2024, comes as a response to the unsustainable operating costs in the region.
In a detailed blog post, Clancy highlighted Twitch’s financial challenges in maintaining its presence in South Korea. Despite efforts to mitigate costs, including experimenting with a peer-to-peer model and limiting source quality to 720p, the network fees in Korea remain significantly higher – nearly ten times more expensive – than in other countries. This has led to Twitch operating at a considerable loss in Korea.
“This is a unique situation,” Clancy stated, emphasizing the disparity in operating costs in Korea compared to other regions. He acknowledged the dedication and effort of Korean Twitch streamers in building their communities. He expressed the company’s commitment to assisting these creators in transitioning to alternative live-streaming services within Korea.
While deeply disappointing for the Korean streaming community, Twitch’s decision is an outcome of prolonged financial strain. Clancy reassured that this shutdown is specific to the Korean market and does not reflect Twitch’s global operations.
The company plans to host live streams to address community questions and provide further information. A stream specifically for the Korean community is scheduled on /TwitchKR, with an additional session on /Twitch for the global audience.
