Netflix and SK Broadband have been fighting over broadband usage costs since 2020. Both got locked in a legal tussle over network usage cost-sharing when Netflix filed a lawsuit against the provider. As a result, SK Broadband responded with its own suit. After almost three years, the fight is finally over. Recently, the companies dropped their lawsuits and instead became partners.
Netflix & SK Broadband Ends Their Dispute
The lawsuits started when SK Broadband wanted Netflix to help cover the cost of partially Squid Game-induced increases in streaming traffic in South Korea. Even though, a South Korean court directed Netflix to pay for the increased network demands. SK estimated the famous show had cost it an extra 27.2 billion Korean won, which translated to about $23 million at that time. Now, the companies ended the legal dispute and decided to become partners instead.
Both will start offering bundled packages that integrate Netflix with SK Broadband’s IPTV and SK Telecom’s service plans. The duo is also looking for methods to “leverage AI technologies developed by SK Telecom and SK Broadband.” VP of Netflix APAC partnerships Tony Zameczkowski says:
The collaboration enables Netflix to enhance entertainment experiences for a broader Korean audience.”
The point worth mentioning here is that the partnership is part of SK’s philosophy. The customer value is prioritized. The firm aims to evolve into an AI company and work together with different players at home and abroad.
