Netflix and SK Broadband, one of South Korea’s largest internet service providers, have announced the end of their legal disputes and the formation of a strategic partnership. This collaboration aims to improve entertainment experiences for Korean customers.
The legal battle between the two companies began in 2020, centering around the question of whether content providers that generate high traffic should pay additional “network usage fees.” Netflix argued that it could provide a technological solution to manage traffic volume, similar to what it has done in other countries. However, SK Broadband resisted, gaining support in the Korean parliament.
The newly announced partnership is rooted in SK Telecom and SK Broadband’s philosophy of prioritizing customer value. It comes as part of their efforts to enhance media services for customers. SK Telecom’s VP of corporate strategy, Choi Hwanseok, emphasized the importance of this partnership, highlighting SK Telecom’s expertise in the telecommunications and innovative technology industries.
For Netflix, this collaboration with SK Telecom holds great significance as it allows the streaming platform to improve entertainment experiences for a wider Korean audience. Tony Zameczkowski, Netflix’s VP of APAC partnerships, expressed his excitement about the partnership and the opportunity to expand Netflix’s reach in Korea.
As part of the partnership, SK Telecom and SK Broadband will offer different price plans and products, including bundled packages. They will also launch Netflix bundled packages that combine SK Telecom’s plans and SK Broadband’s IPTV offerings, introducing additional bundles for SK Telecom’s subscription service, T Universe. The companies plan to introduce services combined with Netflix’s ad-supported price plan to make Netflix more accessible to a greater number of customers.
New products for SK Telecom and SK Broadband customers will be gradually released starting from the first half of 2024. These products may include AI technologies developed SK Telecom and SK Broadband, such as Conversational UX and Personalized Recommendation Technologies.
By investing in local content and successfully exporting shows like “Squid Game” and “Extraordinary Attorney Woo,” Netflix has become the leading premium video streaming platform in Korea. This partnership with SK Broadband will further solidify its position and enhance its offerings to customers.
Sources:
– Netflix and SK Broadband End Lawful Dispute, Form Strategic Partnership
– Netflix Expands Its Reach in Korea Through Partnership with SK Broadband
