Twitch is set to shut down its South Korean streaming platform next year in a bid to deduct the "prohibitively expensive" network fees in the country.
Streaming services in South Korea will cease on Feb. 27 next year.
The streaming platform made the "difficult decision" as the East Asian nation's operating fees are 10 times higher than neighboring countries despite Twitch's "significant effort" to reduce expenses.
Twitch has previously experimented to peer-to-peer models and downgrading livestream videos to 720p to cut down expenses.
CEO Dan Clancy said that Twitch has long been operating at a "significant loss" since South Korea's three main telecoms increased internet fees in 2021.
The Amazon-owned vowed to coordinate with its Korean streamers to help them to other live streaming sites, "even if it's regrettably not on Twitch."
Twitch's competitor Afreeca TV reported a 30% share rise following the announcement.
South Korea High Internet Fees
South Korea's demanding network business has already led to legal fights, including a court battle against Netflix.
The streaming platform ultimately lost and was ordered to pay for bandwidth fees, a precedent on the arrangement between internet service providers and international streaming sites.
Despite high costs, international streaming platforms continue to venture into the East Asian country due to its popularity as the esports center of the world.
Other Live Streaming Sites on South Korea
While Twitch was the biggest platform for gaming and live streaming platform for the Korean community, there are other sites that have been rising over the past years.
Afreeca TV, Twitch's biggest rival in Korea, have been amassing a huge audience for both gaming and non-gaming audience.
YouTube remains on the scene as the streaming giant houses most non-livestream videos in the country.
Then, there is Naver, a new name in the live-streaming scene in Asia primarily focused on gaming and anime-related content, finally making its mark on the Korean audience.
The potential of each platform will depend on which site the former top streamers of Twitch decide to migrate to.
