Twitch to Cease Activities in South Korea by 2024

• High operation costs of running services in Korea
• Lego Star Wars: The Skywalker Saga's air combos feature
• Significant financial loss faced due to high network fees in Korea
• Gradual removal of features for Korean users
• Impact of high network usage fees on Korean streamers and future of streaming services

High Operation Costs in Korea

EO Daniel Clancy stated that running operations in Korea have become overwhelmingly costly. Despite numerous attempts to reduce expenses in the region, the costs remain high.

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Financial Loss in Korea

Clancy further explained that the company had tried several adjustments to their operations in Korea to cut costs. Despite these efforts, network fees were significantly higher in Korea compared to other countries where the streaming service is available. As a result, the company has suffered a significant financial loss and believes there is no feasible way to continue operations in the region.

Changes for Korean Users

As per the company's support site, a timeline has been set for the gradual removal of features for Korean users. From February 27, Korean streamers will no longer be able to monetize their streams, and viewers will not be able to make purchases through the service. Final payouts will be issued on March 16, and all affiliates and partners will be off-boarded on June 4. This means that while Korean viewers can still watch streams, their engagement with the platform will change significantly.

Impact on Korean Streamers

Clancy expressed his sympathies for Korean streamers affected by these changes. He acknowledged the real impact this decision will have on them and emphasized that it was a difficult decision that was delayed for as long as possible.

High Network Usage Fees in South Korea

Reports suggest that these higher operation costs are due to South Korea imposing higher network usage fees on foreign content providers. This has led to the gradual reduction of features for Korean users as the company sought ways to reduce costs. The legislation requiring ISPs to charge additional fees to overseas services is controversial as it risks access to online services and allows ISPs to potentially create arbitrary costs.

The Future of Streaming Services in Korea

The company's ultimate aim could be to stir up public controversy that might pressure Korean service providers to lower their fees. However, whether this strategy will be successful remains to be seen. Despite the gradual reduction of features and stream quality, the future of streaming services in Korea is uncertain.

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