Netflix could have to pay millions in bandwidth usage fees in South Korea



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South Korean internet service provider SK Broadband is suing Netflix to pay for the increased network costs and bandwidth usage that the streaming service’s content has attracted to South Korea, Reuters writing. The company quotes Squid game and DP, two popular Korean dramas from Netflix, as part of the cause.

SK Broadband’s demand for payment is not unfounded. A South Korean court sided with the FAI in June, The herald of Korea writes, suggesting that Netflix was responsible for the demands its content places on SK. Contrary to Netflix’s demand not to charge it – since the customers are the ones who stream and they already pay for it – the court said the company had “an obligation to pay the price for the services to SK. Broadband ”. SK estimates the cost at 27.2 billion won (about $ 23 million) for 2020 alone, according to Reuters.

The edge contacted Netflix for comment. The company shared the following statement with TechCrunch in response to SK requests:

We will review the claim that SK Broadband has brought against us. In the meantime, we continue to seek an open dialogue and explore ways to work with SK Broadband to ensure a seamless streaming experience for our mutual customers.

Netflix’s success in Korea and in popularizing Korean film and television in the United States peaked last year, and especially last week, thanks to the surprise success Squid game. Netflix co-CEO Ted Sarandos said on Monday it was set to become the company’s most popular show to date, and within four days of its release it was already number one in the States. -United in the top ten of Netflix.

Netflix is ​​making deals with service providers like Comcast in the US to give its connection priority treatment and ultimately better video quality. However, Netflix is ​​in a different position now than when it agreed to pay Comcast – it has already lost in court, and SK Telecom has no incentive to strike a deal while regulators consider an ongoing merger with Big. Cable – so even though he’s got more weight to throw away, he’s also already provided an example of why he might pay off in the first place.

(Disclaimer: Comcast is an investor in Vox Media, which owns The edge.)

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