Netflix and SK Broadband have ended their legal dispute over network usage costs, shifting towards collaboration. The dispute arose from SK Broadband's request for Netflix to share the expense of increased network demands due to the success of "Squid Game."
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In this photo taken on October 7, 2021, a large digital screen on a building displays the logo of Netflix, producers of the South Korean hit series "Squid Game", beyond a South Korean flag hoisted above a pavement in Seoul. - A dystopian vision of a polarised society, Netflix smash hit Squid Game blends a tight plot, social allegory and uncompromising violence to create the latest South Korean cultural phenomenon to go global.
Resolving Legal Battle
In a surprising turn of events, streaming giant Netflix and South Korean Internet Service Provider (ISP) SK Broadband have officially put an end to their long-standing legal dispute. The Verge reported that this signifies a significant transformation in their relationship.
This legal feud, initiated back in 2020 when Netflix filed a lawsuit against SK Broadband, and the latter responded with a countersuit, has now come to a close, with both companies choosing to shift their focus towards collaboration rather than litigation.
The dispute originally stemmed from SK Broadband's request for Netflix to share the burden of network usage cost increases, largely attributed to the overwhelming success of the series "Squid Game," which led to a substantial surge in streaming traffic within South Korea.
Ruling in Favor of SK Broadband
A South Korean court ruled in favor of SK Broadband, obligating Netflix to contribute to the additional network expenses. According to SK's estimates, the hit show resulted in an extra cost of 27.2 billion Korean won, roughly equivalent to $23 million at that time.
As a result, Reuters reported that Netflix and SK Broadband have decided to set aside their differences, opting for a more cooperative approach moving forward.
This development underscores the impact of "Squid Game" on the streaming landscape and marks a notable shift in the dynamics of streaming service providers and internet service providers in South Korea.
SK's as its Second-Largest Data Traffic Source
Netflix's commitment to prioritizing its global members is further exemplified by this announcement.
In South Korea, a nation renowned for its influence on the cultural landscape and its nurturing of a world-class creative community, Netflix is strengthening its ties with a broader audience encompassing SK Telecom and SK Broadband subscribers.
This partnership will empower Netflix to offer an extensive array of compelling shows and movies, meticulously curated to cater to diverse preferences, including highly anticipated titles like D.P. 2, Mask Girl, Kill Boksoon, and Physical: 100.
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The immense popularity of "Squid Game" and various Netflix content highlights its role as South Korea's second-largest data traffic source, closely trailing Google's YouTube.
Interestingly, both Netflix and YouTube have been exempt from paying network usage fees, a practice followed by other content providers like Amazon, Apple, and Facebook, according to SK Broadband.
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