Twitch shutting down in South Korea next year; competitor AfreecaTV gaining momentum

Popular live streaming app Twitch is shutting down its operation in South Korea, citing the extensive operational cost of the app as the main reason. The shutdown will be effective starting February 27, 2024.  

Twitch boss Dan Clancy says in the official announcement that the network fees to operate Twitch are ten times higher than in most other countries.

“First, we introduced and tested the P2P model regarding source quality, and then adjusted the maximum video quality to 720p,” the boss explains, saying that while these efforts did reduce costs, the operation still wasn’t feasible. 

“Twitch has continued to operate with difficulty in Korea with significant losses, but has reached a situation where it can no longer find a way to continue operations,” the open letter reads.

Twitch.tv’s main traffic comes from the US, followed by Germany, Russia, and then South Korea in December 2023, according to data from Similarweb. The company will also be providing support to viewers who will be affected by the shutdown.

So, what are the solutions or alternatives, you may ask? AfreecaTV, a South Korean P2P tech-based video streaming service, seems to be gaining momentum for now. It’s been around since 2005 and has gained a whopping 29.91% increase in market share price today amidst Twitch’s announcement.

Read Twitch Korea’s message on their website here, in Korean.