An SK spokesperson said on Friday that due to the surge in viewership of American company content, South Korean Internet service provider SK Broadband has sued Netflix to pay for the increase in network traffic and maintenance work. This move was made after the Seoul court stated that Netflix should “reasonably” provide some rewards to Internet service providers for network usage. Many South Korean lawmakers publicly opposed content providers, despite the explosive traffic generated by content providers. But it does not pay for network usage.
Netflix stated that it will review SK Broadband’s statement, while seeking dialogue and exploring ways to cooperate with SK Broadband to ensure that customers are not affected.
The popularity of the popular series “Squid Game” and other products highlights Netflix’s status as the second largest data traffic generator in the country after Google YouTube, but the two are the only companies that do not pay for network usage. Other content providers For example, Amazon and SK said that Apple and Facebook are paying.
SK said that the Netflix data traffic processed by SK has increased by 24 times since May 2018. As of September, the data volume processed per second was 1.2 trillion bits. SK said that it has benefited from Squid Game and DP. The success of many Netflix works in South Korea.
SK Broadband stated that since Netflix started using SK’s dedicated line in 2018 to provide more and more data-intensive high-definition video content to South Korean viewers from servers in Japan, it has filed a lawsuit against Netflix, requiring it to pay for the use of the SK network. . Hongkong.
Last year, Netflix filed its own lawsuit on whether it is obligated to pay SK for network usage fees, claiming that Netflix’s responsibility ends in creating content and making it accessible. According to court documents, it stated that SK’s fees were incurred in fulfilling its contractual obligations to Internet users, and that the delivery in the Internet world is “in principle free”.
However, the Seoul Central District Court ruled against Netflix in June, stating that SK was deemed to provide “paid services” and that Netflix was “obligated to provide certain things in exchange for services” as “reasonable.”
According to court documents, SK estimates that Netflix will have to pay about 27.2 billion won (about 1.7 billion rupees) in network usage fees in 2020 alone.
Court records show that Netflix has appealed the ruling, and the new proceedings will begin in late December.
Netflix said in a statement on Wednesday that it passed approximately 770 billion won (approximately 4,840 crore) of investment and approximately 5.6 trillion won (approximately RMB 35,200 crore).
The ruling party member Kim Sang-hee said on Wednesday that among the top 10 data traffic generators in South Korea, 78.5% of the traffic came from foreign content providers, up from 73.1% a year ago. Turn a blind eye to usage fees”.
In the United States, Netflix has paid broadband provider Comcast for more than seven years to increase streaming speeds.
© Thomson Reuters 2021