Netflix and South Korean ISP SK Broadband have put an end to their legal battle over network usage cost-sharing. The dispute began in 2020 when Netflix filed a lawsuit against SK Broadband, and the provider responded with a countersuit. However, the companies have now decided to drop their lawsuits and forge a partnership instead.
The cause of the dispute was SK Broadband’s request for Netflix to assist in covering the costs associated with the surge in streaming traffic due to the popular show “Squid Game” in South Korea. A South Korean court ruled that Netflix was obligated to pay for the increased network demands, estimating that the show had cost SK Broadband an additional 27.2 billion Korean won (approximately $23 million).
As part of their partnership, Netflix and SK Broadband will offer bundled packages that combine Netflix with SK Broadband’s IPTV and SK Telecom’s service plans. Additionally, the two companies will explore opportunities to utilize AI technologies developed SK Telecom and SK Broadband. Netflix sees this collaboration as a means to enhance entertainment experiences for a wider Korean audience.
This partnership aligns with SK’s customer-centric approach, prioritizing customer value. Choi Hwanseok, VP of corporate strategy at SK Telecom, stated that they aim to transform into an AI company and engage in collaboration with various partners domestically and internationally.
With the legal dispute resolved and a new partnership formed, Netflix and SK Broadband can now move forward to provide innovative services and offerings to their customers in South Korea.