Netflix Resolves Lawsuit with SK Telecom Through Partnership

Streaming giant Netflix has had many hit series and movies over the years, but none have come close to the record-setting success of “Squid Game.” The massive popularity of this show led to a lawsuit from SK Broadband, a leading telecommunications company, over increased network traffic. However, this lawsuit has recently been resolved with the announcement of a partnership between Netflix and SK Telecom.

This battle between Netflix and SK Telecom has been ongoing since 2020, centered around broadband usage. After the surge in traffic demand due to “Squid Game,” SK Broadband sued Netflix, claiming that it was the second largest data traffic generator, just after YouTube. It was also reported that other major traffic generators like Amazon, Apple, and Facebook were paying SK Broadband.

After three years and multiple lawsuits, Netflix, SK Telecom, and SK Broadband have decided to put their differences aside and join forces through a partnership. This partnership will involve the offering of bundled packages to customers, combining Netflix, SK Telecom, and SK Broadband services. These packages will have different price points available to consumers. Additionally, there will be plans that bundle Netflix with SK Telecom’s subscription service T Universe, as well as plans with Netflix’s ad-supported lower-priced option.

The companies have announced that these new bundle options will be released in the first half of 2024. Alongside these packages, Netflix and the SK Telecom units will also explore the utilization of AI technologies from SK to enhance the entertainment experiences of customers.

As part of this partnership, all previous disputes between SK Broadband and Netflix will be resolved. The financial details of the partnership have not been disclosed, but this agreement may relieve Netflix from paying a fee associated with the increased network demands experienced by SK Broadband during the peak popularity of “Squid Game.” A South Korean court had previously listed a cost of approximately $23 million that Netflix was expected to pay.

The resolution of these lawsuits and the announcement of the partnership coincide with Netflix’s increased investments in South Korea for new content production. A sequel to “Squid Game” is in the works, and the streaming giant also plans to introduce a reality show based on the hit series in the future.

It is worth noting that “Squid Game” holds the Netflix record for the most hours watched in the first 28 days of its availability, with 1.65 billion hours. The show was viewed by 142 million member households during its first four weeks on the platform. Netflix currently has 238.39 million global paid subscribers.

Source: [original article]