Netflix and SK Broadband have reached a settlement in a civil lawsuit that was filed the South Korean ISP over a significant increase in network traffic caused the hit series Squid Games. The two companies have agreed to put their differences aside and work together as partners in the future, citing their shared commitment to prioritizing customers.
As part of the collaboration, Netflix will integrate AI technologies developed SK Broadband and its parent company SK Telecom. This integration aims to enhance entertainment experiences for a wider Korean audience expanding the scope of content delivery in South Korea.
The resolution of the lawsuit prevents a broader debate around who should bear the financial burden when a viral piece of content overwhelms a network. SK Broadband had requested that Netflix share the additional expenses caused Squid Games, but Netflix resisted, arguing that doing so would set a dangerous precedent against net neutrality and potentially lead to higher bills for its members.
The settlement between Netflix and SK Broadband includes the offering of bundle packages through SK Broadband’s IPTV and SK Telecom’s service plans. Customers will have the option to choose from different price tiers, including an ad-supported plan, and enjoy easier access and payment options.
Furthermore, cutting-edge artificial intelligence products, such as Conversational UX and Personalized Recommendation Technologies, will be rolled out to customers in South Korea over the first half of 2024.
This strategic partnership not only resolves the disagreement over maintenance costs arising from the surge in network traffic but also paves the way for future collaborations between Netflix and SK Broadband. The collaboration signifies a shift towards cooperation between content platforms and ISPs in addressing the challenges posed viral content.
Sources:
– The Verge
– CNBC
