Netflix and SK Telecom Resolve Lawsuit, Announce Partnership

Netflix and SK Telecom Resolve Lawsuit, Announce Partnership

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Streaming giant Netflix has resolved a lawsuit with SK Telecom, a leading telecommunications company in South Korea, and announced a new partnership between the two companies. The lawsuit was filed SK Broadband, a unit of SK Telecom, over increased network traffic caused the popularity of Netflix’s hit series “Squid Game.” SK Broadband claimed that Netflix was the second largest data traffic generator in the country, after YouTube, and demanded compensation for the additional network demands.

After three years of legal battles, Netflix and SK Telecom have decided to put their differences aside and collaborate. As part of their partnership, they will offer bundled packages to customers, which will include Netflix, SK Telecom, and SK Broadband services. These bundles will have different price points to cater to consumer preferences. In addition, there will be plans that combine Netflix with SK Telecom’s subscription service T Universe, as well as plans featuring Netflix’s lower-priced, ad-supported option.

The new bundles and plans are expected to be available in the first half of 2024. Alongside this collaboration, Netflix and the SK Telecom units will explore the use of AI technologies from SK to enhance the entertainment experiences of customers.

The resolution of the lawsuit and the announcement of the partnership have significant implications for Netflix. It potentially relieves Netflix from paying a fee for the increased network demands caused “Squid Game.” Previously, a South Korean court had ordered Netflix to pay around $23 million to SK Broadband. This agreement could absolve Netflix from that financial burden.

Netflix’s investment in South Korea is growing, with new content and more “Squid Game” related releases planned. The highly successful series became the most-watched show on Netflix, garnering 1.65 billion hours of watch time within the first 28 days of its release. With over 142 million member households tuning in to the show in the first four weeks, it shattered records for the streaming platform.

As part of the resolution, both Netflix and SK Broadband have decided to end all past disputes. Netflix Vice President of APAC Partnerships, Tony Zameczkowski, expressed excitement for the future partnership, stating that Netflix remains committed to delivering the best stories to its members in Korea and worldwide.

This article is based on information from various sources.
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