Twitch to withdraw from South Korea, CEO's comments regarding network usage fees spark controversy - South Korean report

On the 5th, Dan Clancy, CEO of Twitch, a live streaming platform for games provided by Amazon, announced on his blog, ``On February 27, 2024,
"We will be discontinuing our services in the country." The reason for this is that ``network usage fees in South Korea are 10 times higher than in other countries due to regulations.''
The reason for this withdrawal is controversial. There is no evidence regarding the amount of network usage, and the major portal site ``Naver'' will be hosting a game next year.
There is speculation that changes are expected to occur in the South Korean market, such as the launch of a streaming platform for video games, and that factors such as the deterioration in the management of Twitch.
In that respect. On the other hand, South Korea's Africa TV, which competes with Twitch, posted sales of 87.9 billion won (approx. 9,842.62 million yen) and net income of 19.3 billion won (approx.
161.84 million yen), an increase of 7.4% and 13.2% from the same period of the previous year, respectively. An official from the Korea Telecommunications Operators Association (KTOA) said, ``Twitch's withdrawal is a financial loss.''
I guess it's a defeat.'' “Africa TV’s service seems to be doing well and its profits are improving. Naver is planning to move into the game live streaming market next year.
That must have had an impact," he continued.