Netflix ends a three-year legal dispute over Squid Game traffic

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Netflix and South Korean ISP SK Broadband have been locked in a legal tussle over network usage cost-sharing since 2020 when Netflix filed a lawsuit against the provider, and SK Broadband responded with its own suit. Now the fight is over, Netflix announced, as the companies drop their lawsuits and instead become partners (via Reuters).

The lawsuits started because SK Broadband wanted Netflix to help cover the expense of partially Squid Game-induced increases in streaming traffic in South Korea. A South Korean court said Netflix is obligated to pay for the increased network demands. SK estimated the popular show had cost it an extra 27.2 billion Korean won, which translated then to about $23 million.

The companies will start offering bundled packages that combine Netflix with SK Broadband’s IPTV and SK Telecom’s service plans. The two are also looking for ways to “leverage AI technologies developed by SK Telecom and SK Broadband.”

The collaboration, says VP of Netflix APAC partnerships Tony Zameczkowski, “enables Netflix to enhance entertainment experiences for a broader Korean audience.”

The partnership is part of SK’s philosophy “where customer value is prioritized,” said Choi Hwanseok, VP of corporate strategy at SK Telecom. He added, “We will continue to evolve into an AI company and work together with various players at home and abroad.”