Netflix and South Korean internet provider SK Broadband end three year legal battle over Squid Game traffic

While hit series Squid Game provided entertainment and drama for millions of viewers, it also gave rise to drama off screen between South Korean internet service provider SK Broadband and streaming giant Netflix.

 

The legal battle began as a result of SK Broadband's request that Netflix contribute to the cost of Squid Game-induced surges in streaming traffic in South Korea. A South Korean court ruled that Netflix must cover the cost of the additional network demands. The popular show, according to SK, cost it an additional 27.2 billion Korean won, or almost US$23 million at the time.

 

But Netflix has now announced that the conflict is over after the two companies decided not to pursue legal action and have formed a new partnership instead. 

 

In a statement released on Monday, Netflix will end all disputes and work together as partners going ahead. This agreement between the parties results from their shared fundamental principle of giving customers top priority and is designed to provide better entertainment experiences to their customers.

 

The strategic partnership involves the companies offering bundled packages that combine Netflix with SK Broadband’s IPTV and SK Telecom’s service plans with easier access and payment options. 

 

In addition to launching Netflix bundled packages that combine SK Telecom’s plans and SK Broadband's IPTV offerings, they will introduce additional Netflix bundle packages for SK Telecom's subscription service, T Universe. The two companies also plan to introduce services combined with Netflix’s ad-supported price plan to allow more customers to enjoy Netflix.

 

New products for SK Telecom and SK Broadband customers will be gradually released from H1 2024, and more detailed information will be unveiled over time.

 

Netflix’s Tony Zameczkowski, vice president of APAC partnerships, said, "The partnership with SK Telecom, a leader in Korea’s telecommunication and innovative technology industries, holds special significance as it enables Netflix to enhance entertainment experiences for a broader Korean audience. Netflix is committed to creating and delivering the best stories to members in Korea and audiences worldwide, and we have high expectations for the journey ahead as partners serving our customers with SK Telecom and SK Broadband."

 

SK Telecom's Choi Hwanseok, vice president of corporate strategy, stated, "This strategic partnership with Netflix originates from the philosophy of SK Telecom and SK Broadband, where customer value is prioritised, and comes as part of our efforts to provide customers with an enhanced media service environment." Additionally, he said, "We will continue to evolve into an AI company and work together with various players at home and abroad."