Twitch CEO Dan Clancy has revealed the painful choice to shut down the popular streaming platform in Korea by February 27, 2024, KST in a recent update on the company’s operations in Korea. This move is the result of Twitch’s difficulty to continue doing business in Korea due to prohibitively expensive operational costs.
Financial realities force Twitch to bid farewell to Korea
Despite efforts to save costs, such as experimenting with a peer-to-peer approach and limiting source quality to 720p, Twitch has been losing money in Korea. According to reports, network fees in the country are ten times more than in most other countries, making it financially unviable to continue operations.
Twitch reassures its global audience that this choice is unique to Korea due to the extraordinarily high operational costs, which have been freely known for some time. The business recognizes the disappointment this announcement may cause the loyal Twitch community in Korea, particularly streamers who have spent time and work cultivating their following.
In light of the shutdown, Twitch is committed to assisting affected streamers in finding new platforms for their communities, even if that means switching to alternative streaming platforms. To ensure a smooth transition, the business will work closely with these streamers and reach out to other streaming services in Korea.
Twitch reveals timeline for business shutdown in Korea and its global impact
For users outside Korea, the timeline of the shutdown is outlined as follows:
- December 6th, 2023 (KST) / December 5th, 2023 (PT): Announcement of the Twitch business shutdown in Korea on February 27th, 2024.
- February 27th, 2024 (KST) / February 26th, 2024 (PT): Streamers with Korea selected as their country of residence will no longer be able to monetize through Twitch, and viewers in Korea won’t be able to make purchases on the platform.
- March 16th, 2024 (KST) / March 15th, 2024 (PT): Final payout for streamers with Korea selected as their country of residence during onboarding.
- June 4th, 2024 (KST) / June 3rd, 2024 (PT): Affiliates and Partners will be off-boarded from Twitch.
Twitch’s time in Korea has come to an end, with CEO Dan Clancy expressing grief but highlighting the company’s thanks for the unique role Korea has played in the international esports scene. The impact on affected users outside of Korea will be realized as the closure progresses according to the schedule.
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