South Korean internet service provider SK Broadband has sued Netflix after the hit Squid Game, which became so popular that platform traffic on its network jumped to 1.2 Tbps. The provider believes that Netflix should cover the costs associated with increased traffic and network maintenance.
In general, SK Broadband is unhappy with the fact that the data traffic in its systems is constantly increasing as more and more users in South Korea connect to Netflix. “We will consider the claim that SK Broadband has filed against us. At the same time, we will continue to strive for open dialogue and explore the possibilities of working with SK Broadband to ensure a smooth streaming experience for our mutual customers. “, – commented on the incident to The Register, a representative of Netflix.
This is not the first time that two companies have collided. In November 2019, SK Broadband petitioned the Korea Communications Commission to force web video giants Netflix and YouTube to pay for network usage. Then Netflix filed a lawsuit against SK Broadband to give courts the ability to decide whether the company should pay compensation to providers.
In June, judges in Seoul ruled in favor of the Korean provider, according to The Korea Herald, ruling that Netflix must pay SK Broadband a “reasonable” amount to service the giant’s traffic. According to the provider, in the fourth quarter of 2020, Netflix accounted for 5% of traffic in South Korea, and this year alone, the platform has to pay $ 23 million. Streaming appealed against this decision, the proceedings in the next instance will begin in December.
SK Broadband’s latest lawsuit against Netflix is likely triggered by an unexpectedly large increase in traffic driven by a new hit on the platform. Last Friday, the service released the Korean TV series The Squid Game, in which the characters of a dystopian thriller face off in a deadly battle for a massive jackpot. The show became the most watched show in 90 countries where Netflix operates and received high marks from critics.