Netflix Inc., the world’s leading streaming service, and SK Broadband Co., South Korea’s second-largest internet service provider, have announced a resolution to their legal disputes over payment for network usage in the country. The companies have agreed to settle their differences and enter into a strategic partnership aimed at delivering better entertainment experiences to customers in South Korea.
The legal battles between Netflix and SK Broadband began in April 2020 when Netflix filed a complaint against the internet service provider in a Seoul court. The court ruled in favor of SK Broadband in June 2021, ordering Netflix to make a payment. Netflix appealed the decision, and SK Broadband filed a countersuit. These disputes garnered attention worldwide, as they highlighted the issues surrounding network usage fees and the growing popularity of over-the-top (OTT) media platforms like Netflix and YouTube.
As part of the settlement, SK Broadband is expected to receive compensation equivalent to the network usage fees from Netflix. The details of the negotiations have not been disclosed, but industry sources in Seoul believe that Netflix may have been concerned about potential losses in higher courts if the appeal was unsuccessful. This settlement could pave the way for similar lawsuits worldwide.
In addition to resolving their legal disputes, Netflix, SK Broadband, and its parent company SK Telecom have formed a strategic partnership. The partnership will enable customers to enjoy Netflix shows and films on mobile devices and IPTV with easier access and payment options. SK Telecom and SK Broadband, both companies belonging to the SK Group, plan to offer various price plans and bundled packages to enhance the viewing experience for customers.
The collaboration will not only benefit the companies involved but also establish deeper connections with customers in South Korea, a country known for its cultural contributions and impressive creative ecosystem. Through this partnership, Netflix aims to leverage artificial intelligence technologies with SK Broadband and SK Telecom to create even better entertainment experiences for customers.
With this settlement and strategic partnership, Netflix and SK Broadband are poised to strengthen their positions in the South Korean market and provide enhanced entertainment options to their customers.
Sources:
– Netflix and SK Broadband agree to end legal disputes and collaborate on future business expansion in South Korea – Hankyung.com
– Image source: Netflix (Courtesy of Netflix)
– Image source: Netflix (Casts of Squid Game Season 2)
