According to Reuters, SK Broadband, a South Korean internet service provider, is suing Netflix to recover increased network expenses and bandwidth usage as a result of the streaming service’s content in the country. Squid Game and D.P., two popular Korean Netflix dramas, are cited as contributing to the problem.
The demand for payment by SK Broadband is reasonable. According to The Korea Herald, a South Korean court concurred with the ISP in June, implying that Netflix was to blame for the demands its content places on SK.
The court found Netflix had “the obligation of paying the fee for the services to SK Broadband,” despite Netflix’s argument that it not be taxed because customers are the ones streaming and already pay for it.
According to Reuters, SK estimates the cost at 27.2 billion won (about $23 million) for 2020 alone.
Netflix has been contacted for comment by The Verge. In response to SK’s demands, the business sent the following statement to TechCrunch:
We’ll look into the claim made against us by SK Broadband. Meanwhile, we continue to seek open communication with SK Broadband and explore methods to collaborate in order to provide a seamless streaming experience for our shared clients.
Thanks to the surprise smash Squid Game, Netflix’s popularity in Korea and in popularizing Korean film and television in the United States has reached a pinnacle in the last year, and particularly in the last week.
Ted Sarandos, co-CEO of Netflix, said Monday that it was on course to be the company’s most popular show yet and that it was already number one in the US on Netflix’s top ten rankings four days after its premiere.
Netflix makes agreements with service providers such as Comcast in the United States to provide its connection priority treatment and, as a result, higher video quality.
Netflix, on the other hand, is in a different position now than it was when it agreed to pay Comcast it has already lost in court, and SK Telecom isn’t incentivized to make a deal while regulators consider a pending Big Cable merger so, while it has more clout, it has already demonstrated why it might pay in the first place.