Naver's CHZZK Targets Gaming Streaming Dominance, Twitch Exit Boosts Competition with YouTube, AfreecaTV

Naver Corp. launched its closed beta service for video streaming, CHZZK. With this, the company officially joined the game streaming scene in South Korea.

Naver's entrance into game streaming is perfect timing as the US-based interactive live-streaming service Twitch just withdrew from the country. Its exit created a big opening for CHZZK since this is the other option when users switch to services.

Naver to Go After YouTube and AfreecaTV

Naver said on Wednesday, Nov. 6, that it introduced its video streaming service to take over the growing gaming and live streaming market. It added that this move is part of its strategy to bring more people to the platform.

According to The Korea Times, as Twitch suddenly announced its plan to leave the Korean market, it will make Naver's CHZZK the new direct competitor of YouTube and AfreecaTV. With Twitch now out of the picture, Naver will focus on its new rival platforms and will work on building up its presence.

Twitch explained it decided to end its services in the country due to the increased cost of operations. It will officially cease its operations on Feb. 27, 2024.

CHZZK's Streaming Service Beta Run and Launch

Naver will test its game streaming feature for four days by broadcasting a game tournament featuring "League of Legends" and "StarCraft" matches. This will be viewed by 380 company employees who will also participate as players. This test run will end on Dec. 8.

"We are conducting a closed beta test targeting our employees for our game streaming service from Tuesday," the company's spokesperson said in a statement. "Streaming services are an aspect of strengthening community functions. We also view this streaming service as a community feature. To provide a quality streaming service, we have already secured various video-related technologies."

Korea Joongang Daily reported that Naver will release the open beta version of CHZZK on Dec. 19 and scheduled the public launch in 2024. With the new platform's user-friendly interface and tailored game broadcasting for users, it is expected to attract gamers immediately.

"If Naver can attract local Twitch streamers and attain user traffic, Chzzk's market value is expected to go over 1 trillion won," Kim Ha Jeong, a Daol Investment & Securities analyst, said. "The new platform is also expected to spill over to Naver's earnings as the service expands by integrating Naver's other businesses in advertising and commerce, as well as its online communities."

Photo by: Naver Corp Press Room