Twitch, a popular video streaming service, is set to cease its operations in South Korea on February 27, citing the "prohibitively expensive" nature of operating in one of the world's largest esports markets. The decision was influenced by South Korea's high network costs, which are 10 times more expensive than in most other countries.
Despite efforts to lower operational expenses by experimenting with a peer-to-peer model and reducing streaming quality to 720p, Twitch faced significant losses in Korea.
The decision highlights the challenges posed by South Korea's "Netflix law," which requires online content providers to pay additional "network usage fees" based on substantial traffic volumes.
This move by Twitch opens the door for other streaming services, such as Naver's upcoming game streaming service 'CHZZK,' to fill the gap in the Korean market. The esports community in Korea, known for its significant role globally, faces a shift as streamers seek new platforms amid Twitch's withdrawal.
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