Netflix and SK Broadband, one of South Korea’s largest internet service providers, have reached a resolution to their legal disputes and are instead opting for a strategic partnership to improve entertainment offerings for Korean customers.
The disagreement initially arose in 2020 regarding the issue of whether content providers should pay additional “network usage fees” on top of what is paid by household end users. This matter sparked debates on net neutrality and its potential impact on consumer costs.
Netflix proposed a technological solution to handle traffic volume, similar to those implemented in other countries and rival internet service providers in Korea. However, SK Telecom and its subsidiary SK Broadband resisted and garnered support for their stance in the Korean parliament.
The decision to establish a strategic partnership between Netflix and SK Broadband is rooted in their shared commitment to prioritize customer value and enhance media service experiences. This collaboration is seen as significant for Netflix, as it allows them to further enrich the entertainment experiences of a broader Korean audience.
Under this partnership, SK Telecom and SK Broadband aim to facilitate seamless access and payment options for customers to enjoy Netflix shows and films on mobile devices and IPTV (B tv). They plan to offer various price plans and product bundles, including combined packages that integrate SK Telecom’s plans, SK Broadband’s IPTV offerings, and even Netflix’s ad-supported price plan.
Furthermore, the two companies intend to introduce new services featuring AI technologies developed by SK Telecom and SK Broadband, such as Conversational UX and Personalized Recommendation Technologies, which will gradually roll out from the first half of 2024.
Netflix has achieved substantial success in the Korean market, becoming the leading premium video streaming platform by making significant investments in local content. By exporting licensed, co-produced, and original shows like “Squid Game,” “Extraordinary Attorney Woo,” and “Physical: 100” to various territories, Netflix has popularized Korean content globally.
The strategic partnership between Netflix and SK Broadband marks a significant milestone in enhancing entertainment experiences for Korean consumers and further strengthening Netflix’s presence in the Korean market.