It was recently revealed that the ‘Korean telecommunications watchdog’ had imposed a fine worth $327,000 on Twitch following the streaming titan’s withdrawal from the market. Last year, Twitch pulled out of South Korea based on ‘exorbitant’ operating costs, most of which came down to the price of bandwidth in the country. That move followed a reduction of services that included dropping streaming quality in the nation from 1080p to 720p.
Pay the Price
Ironically, Twitch’s decision to abandon South Korea to save costs has ended up costing the company hundreds of thousands of dollars, but that’s business.
Recently, an article published in The Korea Times revealed that the ‘Korea Telecommunications Commission’ had determined the relatively sudden withdrawal of Twitch ‘violated local telecommunications business law by undermining the interests of users.’
Specifically, the fine has been handed to Twitch because the company is blocking VOD access in the country.
Twitch cited confidentiality obligations when pressed by the KTC to provide justifiable reasons for initially limiting the ‘maximum viewing quality’ in South Korea. There was another fine imposed against Twitch by the KTC for allegedly failing to implement adequate systems to prevent the distribution of ‘illegal footage’.
Since removing its services from Twitch, the likes of YouTube, Kick.com, and AfreecaTV have taken up most of the market.
For more Insider Gaming coverage, check out the news that Age of Empires Mobile has been revealed
