American game streaming platform Twitch announced on Tuesday, December 5, that it would suspend its service in South Korea in February due to excessively high Internet network costs.
The Twitch platform, belonging to the Amazon group, considers that the continuation of its activities in the country has become “impossible” due to the costs of using the high-speed network “ten times higher than those of most other countries.” “, according to a press release signed by its CEO, Dan Clancy.
“Twitch’s operations in South Korea are expected to end on February 27, 2024,” said the press release published on December 5.
Twitch announced in March that it would eliminate more than 400 jobs to finance the continuation of its activity in the hyperconnected Asian country.
A situation that “is no longer sustainable”
Twitch explained that it had “made a lot of efforts to find ways to continue operating in South Korea while reducing costs,” such as maximizing the quality of its videos, but believes that the financial situation is no longer sustainable.
Real-time interactive platform Twitch has established a strong presence among gamers in South Korea. The country is known for its passionate and competitive gaming community, as well as esports megastars like Faker.
Started processes
“South Korea has always been a leading player in the global esports community and will continue to be so.” Unlike many other countries, South Korea allows Internet service providers to charge more for companies that use a lot of data. The American streaming giant Netflix has filed lawsuits in the country to challenge high fees for using the network.
Shares of South Korean video streaming service Afreeca TV, a Twitch competitor, soared nearly 30% in afternoon trading in Seoul.
South Korean Twitch users expressed their dismay at the announcement. “I feel like I’m losing my job right now,” said yummy_2, a streamer.
Source: BFM TV
