South Korean Telecom SK Broadband and Netflix End Dispute, Form Partnership

South Korean Telecom SK Broadband and Netflix End Dispute, Form Partnership

Netflix News

South Korean telecom SK Broadband and Netflix have resolved their dispute over payment for the massive amount of video content transmitted over mobile networks. SK Broadband filed a lawsuit against Netflix in October 2021, contending that the streaming service should bear the costs associated with the significant increase in traffic caused popular shows like Squid Game. SK Broadband reported that Netflix accounted for five percent of South Korea’s network traffic in Q4 2020 and owed $24 million in network usage fees. Netflix argued that its content delivery network, Open Connect, reduced network traffic at least 95 percent and should exempt the company from additional charges.

The two companies have since put their differences aside and established a partnership. The collaboration will involve joint product releases and exploration into the use of artificial intelligence (AI). Netflix, SK Telecom, and SK Broadband will work together to improve access and payment options through platforms such as Netflix, SK Broadband’s IPTV, and SK Telecom’s T Universe. Bundled packages will also be offered the telecom provider. Additionally, the AI collaboration between Netflix and SK Broadband will initially focus on leveraging the latter’s conversational UX and personalization technology.

This partnership signifies a commitment from both SK Broadband and Netflix to prioritize their customers and work together for future success. SK Telecom’s parent company, SK Broadband, stated that this decision is based on a shared foundational principle. SK Telecom’s Vice President, Choi Hwan-seok, expressed the telecom provider’s intention to continue evolving into an AI company and collaborate with various partners globally.

Sources: SK Broadband, SK Telecom