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Twitch to pull out of Korea—the network usage fees are just too high...

Haebom
Twitch's decision to pull out of the Korean market isn't just about network fees—there are multiple layers to this issue. To fully understand, it needs to be looked at from different angles. But honestly, for users, those viewpoints probably aren't what matter; what people really want to know is what will actually change.
트위치 라이브를 통해 철수 사실을 밝히고 기자회견을 진행한 Dan Clancy

For viewers

You can still watch live streams and videos even after Twitch leaves
After Twitch exits, you won't be able to buy any paid content on Twitch.
Refunds for subscriptions, Turbo, and Bits can be requested until March 27, 2024

For streamers

You can still upload videos via live streams or Twitter
You won't be able to make money on Twitch anymore (ads, subscriptions, hype chat, bits, etc.)
But you can still receive donations via services like Twip or Toonation
You can't apply for Affiliate or Partner, and existing Affiliates and Partners will have their agreements terminated on June 4, 2024
All earnings, including amounts under $50, will be paid out automatically when Twitch leaves
Simultaneous streaming guidelines in Twitch's Terms of Service won't apply anymore
People talk about network fees and whatever, but Twitch's stance hasn't really changed since last year. (Even after lowering the quality) they still say network fees are too expensive.

Twitch's statement

Twitch says network usage fees in Korea are 10 times higher than in other countries, so their service ROI here doesn't add up.
The Korean e-sports market is large and there are many talented creators, but unfortunately it's difficult to keep supporting them
Twitch Korea will shut down in February 2024, and Twitch's official service will no longer be available in Korea

KTOA's view

The success of the local streaming service AfreecaTV and Naver's plans to launch a new service pushed Twitch to decide to leave the market
Lately, a number of top executives at Twitch HQ have resigned, reflecting worsening management and internal conflicts, being blamed on network fees
Back in October 2022 when Twitch announced it would lower stream quality, network fees were a big topic. But with Twitch's business also taking a hit lately, people are wondering if this decision is basically a graceful way to bow out. Who knows what the real truth is, but it is true that Twitch's business has gotten a lot tougher recently.
But Twitch pulling out of Korea doesn't mean the service itself is ending—just that Twitch Korea is leaving, so you'll still be able to use the service. However, the main point is that it will be hard to pay for Twitch's paid goods and you won't get official support anymore.

Official Statement from Twitch

Today, I have to share some very unfortunate news. After years of effort and consideration on how to keep operating in Korea, Twitch has decided to end its business operations in Korea as of February 27, 2024 (KST). We know this is extremely disappointing for the many Korean streamers who have put so much time and effort into building their communities on Twitch and whose livelihoods depend on the platform. I want to explain in detail why we made this decision, the timeline for our shutdown, and how we plan to support those affected.
The cost of running Twitch in Korea has reached a seriously high level. We've done everything we can to find a way to continue operating here by lowering costs. We started by testing a P2P model for source quality, then reduced the maximum quality to 720p. While these efforts helped reduce costs a bit, Korea's network fees, which are 10 times higher than most other countries, have made continued operation impossible. As a result, Twitch has been running at a heavy loss here for some time, but there is simply no way we can continue.
Twitch will end its operations in Korea on February 27, 2024, after which Korean viewers won't be able to purchase Twitch's paid products, and streamers will no longer be able to earn revenue on Twitch. More details can be found in our help article. We've also sent notifications to all affected Korean streamers and viewers.
We know how important it is for streamers and their communities to find a new home, like AfreecaTV or YouTube. To help make this transition smooth, we'll allow streamers to use Twitch's onsite notification feature and post links to other services. We'll also talk with these other platforms to see how we can further support moving your communities, and will let you know if there are any updates.
Lastly, I want to reiterate that this was a very difficult decision, and everyone at Twitch is truly saddened by it. Korea has always been a shining presence in the global esports community and will continue to be. We are deeply grateful for your dedication in building such a great Twitch community here.
We'll keep in close communication with you in the weeks leading up to February 27, and today, December 6 at 9:30 AM KST, I will personally join a live stream at /TwitchKR to speak with the community. For more information, please see our official help article.

Dan Clancy, CEO of Twitch
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