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Network fees on Twitch
Jon Brodkin
– Dec 7, 2023 8:15 pm UTC
Getty Images | NurPhoto
Get the latest update on Amazon-owned Twitch’s planned shutdown in South Korea due to network fees.
Twitch CEO Dan Clancy announced on Tuesday that the shutdown is set for February 27, 2024 citing prohibitive network fees. The company has made efforts to reduce data usage but the fees remain unmanageable. Twitch’s network fees in Korea are 10 times more expensive than in most other countries, which has led to significant loss in operating the service in the country. Clancy emphasized that this is a unique situation in Korea and won’t necessarily be repeated elsewhere.
However, the company will help streamers in Korea transition to alternative platforms. “We will work to help Twitch streamers in Korea move their communities to alternative live streaming services in Korea. We are also reaching out to several of these services to help with the transition and will communicate with impacted streamers as those discussions progress,” Clancy wrote.
Sending-party-pays model causes problems
The “sending-party-pays” model in Korea has caused less-efficient traffic flows, higher prices, and lower content quality according to the Information Technology & Innovation Foundation. Many online platforms have been affected, and this has resulted in inefficient traffic management as well as higher costs.
Furthermore, the enforcement of these “sending party pays” policies has made hosting content in Korea’s networks excessively expensive, leading to negative impacts such as slower access for local users. This practice has been causing various issues for large platforms.
This issue was exemplified by South Korean service provider SK Broadband, which sued Netflix in 2021, seeking payment for a surge in network traffic. These problems with network fees have perhaps contributed to Twitch’s decision to discontinue its streaming services in the country.