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Why Is Twitch Leaving South Korea?

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With intentions to end operations completely on February 27, Twitch is departing South Korea. CEO Dan Clancy attributes this to “prohibitively expensive” networking fees.

The announcement is extremely disappointing because the nation is home to some of the most skilled League of Legends and Starcraft players worldwide, making it one of the biggest esports marketplaces worldwide.

Clancy refers to this as a “unique situation,” pointing out that operating costs in South Korea are ultimately ten times higher than in other nations. He continued by saying that although Twitch made a “significant effort” to carry on, the Amazon-owned business was unable to pay for it.

According to TechCrunch, some of these initiatives included lowering the resolution of streaming to 720p and implementing a less expensive peer-to-peer format.

Additionally, Netflix has been transparent about its difficulties in maintaining operations in South Korea. Before reaching a settlement in September, the internet service provider SK Broadband and the streaming behemoth had been suing each other over networking expenses.

As usual, Netflix ended up hiking rates by about 13 percent, which meant that consumers received the short end of the stick.

Why Is Twitch Leaving South Korea?

So what precisely is the problem? It all comes down to the “Sending Party Network Pays” (SPNP) model, a specific kind of internet traffic tax used in South Korea. In order for traffic to be sent to the end user, this tax compels the tech company—in this case, Twitch—to pay a fee to the ISP.

Source: Vimbuzz.com

Nurudeen Mohammed is a certified Digital Marketer and SEO strategist who helps bloggers and entrepreneurs grow their online presence. He also blogs about contemporary occurrences on the globe. To become more discoverable, tell a richer story, and build a stronger brand for yourself, contact me at [email protected].

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