What is the reason for Twitch withdrawing from South Korea? Twitch platform evacuating from South Korea

Twi-xit: Twitch's withdrawal from Korea is scheduled to take effect on February 27, 2024. The term "twi-xit" has been coined to describe Twitch's exit from the Korean market, combining the words "Twitch" and "exit." This withdrawal is expected to have a significant impact on Korean users. Now let's find out why Twitch is withdrawing from Korea and explore alternative platforms to cope with Twitch's departure.

Reasons for Twitch's Withdrawal in Korea

End Date: Twitch has decided to terminate its services in Korea starting from February 27, 2024. After that, Korean viewers and streamers will no longer be able to use Twitch. Twitch is planning to support the transition of viewers and streamers to new platforms, but many Korean users are dissatisfied with this situation.

Surface Reason: Twitch stated that the high network fees in Korea compared to other countries make it difficult to operate and generate revenue. Due to these reasons, Twitch has decided to withdraw from the Korean market. However, it can be speculated that the reason for Twitch's withdrawal may not be solely due to the high internet fees in Korea, as platforms like AfreecaTV are still generating revenue successfully.

In other words, market conditions and the company's business model may have influenced Twitch's withdrawal. Therefore, Twitch's withdrawal from Korea seems to be due to specific market conditions in Korea.


twitch-korea


Are there any other reasons?

Streaming platforms can generate revenue through various methods, including advertising, sponsorships, and brand collaborations. Let's compare the revenue models of Twitch and AfreecaTV.

Twitch VS AfreecaTV Revenue Model Comparison

  • 1. Advertising Revenue: Both Twitch and AfreecaTV generate revenue through advertising. Twitch displays ads on streamers' channels, while AfreecaTV uses an ad revenue model called "AdBulloon."
  • 2. Channel Memberships: Both Twitch and AfreecaTV generate revenue through channel subscriptions. On Twitch, when viewers subscribe to a streamer's channel, the streamer earns revenue from it. On AfreecaTV, regular subscriptions contribute to revenue. However, the problem is that Twitch, as a subsidiary of Amazon, automatically grants Twitch Prime membership when users subscribe to Amazon Prime. This means that revenue is generated through Amazon's services.
  • 3. Virtual Currency: Both Twitch and AfreecaTV generate revenue through virtual currencies. Twitch uses "Bits" as virtual currency, while AfreecaTV uses "Star Balloons". Viewers can send virtual gifts to streamers using these currencies, and the platform earns revenue through transaction fees.


Did Twitch's Business Model Fail in Korea?

The most significant difference in revenue models lies in the service membership. Twitch, as a subsidiary of Amazon, is closely linked to Amazon Euro Membership. Joining Amazon Prime automatically enrolls users in Twitch Prime, and Twitch generates revenue from this. However, since Amazon has not entered the Korean market at present, Twitch's revenue model may not work effectively.

Additionally, AfreecaTV generates revenue through its "Star Balloon" service, while Twitch also uses the virtual currency "Bits" for donations. However, the revenue from Twitch's donations through Bits is not significant.

In summary, it can be said that Twitch's business model did not succeed in Korea. Factors such as high network fees in Korea and the failure of Twitch's revenue generation model contribute to its withdrawal.


Which Platforms Will Replace Twitch After Its Withdrawal?

When Twitch withdraws from Korea, other platforms such as AfreecaTV, YouTube, and Naver are expected to benefit from the situation. Naver, in particular, is planning to launch a game streaming platform called "NAVER Chijijik" next year, which could provide an opportunity to attract Twitch users. These changes are expected to bring significant changes to the domestic streaming platform market.

NAVER Chijijik, developed by Naver, has a similar UI to Twitch, which can provide a relatively familiar service to Twitch users. Additionally, AfreecaTV, with its strong brand power in Korea, is expected to absorb Twitch users. It's exciting to anticipate the changes that will occur in the streaming market.



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