On 6 December 2023, Twitch announced that it will cease operations in South Korea in February next year, citing elevated operating expenses and network fees as the primary reasons.
In a blog post, Dan Clancy, CEO, Twitch, stated that the platform has been facing substantial financial losses in Korea, and regrettably, there is no viable way for the business to operate more sustainably in that country.
The CEO mentioned that network fees in Korea are ten times higher than in many other nations. Despite considerable efforts to cut operating costs, Twitch has been battling challenges.
In October, 2023, the video-streaming platform reportedly let go of 400 employees. This downsizing, revealed by user ‘Zach Bussey,’ was smaller than the one in March, 2023.
Introduced in 2011, Twitch began with a primary emphasis on streaming video games. Over time, it broadened its content to encompass music, creative arts, and “In Real Life” (IRL) broadcasts. People, including gamers and content creators, use Twitch to livestream their gameplay or engage with viewers through chat. Nonetheless, Twitch has faced difficulties, such as controversies related to moderating content and competition from platforms such as YouTube Gaming and Facebook Gaming.
