Twitch Limits Broadcast Quality in Korea Due to Cost Burden
[Asia Economy Reporter Yuri Choi] Following YouTube, Amazon has also intervened in the legislative issue regarding network usage fees being promoted by the National Assembly. It cited the increasing cost issues in Korea as an excuse by limiting the streaming quality of its game streaming platform Twitch in the country. Previously, Google hinted at reducing investment in Korean YouTube creators, raising concerns that only domestic users are suffering due to the global content providers' (CPs) opposition campaign against network usage fees.
On the 29th, Twitch announced through its Korean blog that "the original quality for Korean viewers will be adjusted," and "the video quality within Korea on channels where quality adjustment is applied will be capped at 720p." This lowers the maximum resolution from the previous 1080p to 720p.
Additionally, Twitch withdrew plans to introduce peer-to-peer (P2P) technology, stating that it requires in-depth review. P2P transmission involves utilizing some of the viewer's computer resources when watching broadcasts in high quality. Previously, Twitch conducted P2P tests domestically to reduce cost burdens but has now taken a stronger step by lowering the streaming quality instead.
The reason given for the quality limitation was the increase in costs. Twitch explained, "The cost of operating services in Korea has continuously increased and is expected to continue. New solutions are needed to maintain the service."
This is interpreted as effectively restricting the service due to the burden of network usage fees. Twitch is known to have paid network usage fees through domestic Internet Service Providers (ISPs). Currently, CPs such as Google and Netflix are strongly opposing the network usage fee legislation being promoted in the National Assembly.
Users are voicing dissatisfaction. Complaints such as "Games are moving towards ultra-high definition, but streaming services are regressing" are pouring in, and some streamers have declared a broadcast boycott. There are also concerns that service restrictions may spread to other platforms like YouTube and Netflix, starting with Twitch.
Google is also using domestic YouTube creators as leverage to block the legislation. On the 20th, Kurt Anand, Vice President of YouTube Asia-Pacific, hinted at the possibility of halting investment through a blog post right after the public hearing on mandatory network usage fees legislation, stating, "This imposes a double burden on content companies by internet service providers, and such costs will disadvantage content companies and creators," and "If the law is amended, we may have to consider difficult decisions such as changing the way we operate business in Korea." Since then, Google has been mobilizing various means, including urging creators to participate in signature campaigns and file complaints against the bill.
As global CP companies launch public opinion campaigns citing the burden of network usage fees, there are criticisms that only domestic users are suffering. An industry insider pointed out, "Although this is an issue that should be fought with ISPs or the National Assembly, they have strategically chosen to rally public opinion by putting domestic users at the forefront," adding, "Only consumer damage is increasing."
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