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Twitch , the popular video streaming service , plans to shut down its line in South Korea on February 27 after finding that operate in one of the populace ’s largest esports securities industry is “ prohibitively expensive . ”
Twitch CEO Dan Clancy said the firm undertook a “ significant effort ” to reduce the mesh toll to operate on in Korea , but finally the fee to operate in the East Asian body politic was still 10 times more expensive than in most other nation . The ceasing of operation in Korea is a “ singular situation , ” he pen in ablog post .
South Korea ’s expensive net fee have led tolegal fights — pelt heavyweight Netflix unsuccessfully sued a local broadband supplier last year to quash paying utilization charges , but Seoul ’s Margaret Court rule that Netflix must contribute to the mesh price enable its half - billion - dollar Korean business .
Twitch attempt to glower its internet costs by experimenting with a compeer - to - compeer model and then downgrading the streaming quality to 720p video resolution , Clancy say . While these efforts helped the firm lower its connection costs , it was n’t enough . The Amazon - owned cyclosis armed service said it has been run in Korea at a “ meaning loss , ” and there was “ no pathway forward ” to lead the business sustainably in the country .
“ I require to reiterate that this was a very hard decision and one we are very disappointed we had to make . Korea has always and will continue to play a particular role in the international esports community and we are fantastically thankful for the communities they ramp up on Twitch , ” write Clancy .
Esports is huge in South Korea , with pro gaming a ethnical phenomenon and top players enjoying celebrity status . Over half the nation ’s 50 million population are esports fans . South Korea predominate competitive gambling worldwide , especially in titles like Starcraft and League of Legends , hosting multiple major tournaments per year . Twitch had amassed million of users in South Korea , which was also one of the popular markets for the cyclosis service .
Like South Korea , telecom operator in many other markets are beginning to push for content supplier to pay for web cost . Telecom manipulator in India , the secondly declamatory wireless market place , recommended earlier this class that cyberspace companiescompensate them for using the networks . electronic connection operators in India cite the regulatory changes in Korea as one of their inspiration .
