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Netflix faces another lawsuit.
South Korean internet provider SK Broadband has filed a lawsuit against the streamer to cover the costs of increased traffic and maintenance after increased traffic, a spokesperson for the provider said, according to Reuters.
The increase in traffic comes as “Squid Game” dominates Netflix. The Korean-language drama is set to become the streamer’s greatest show in its history.
The lawsuit comes after a Seoul court ruled that Netflix should ‘reasonably’ offer the ISP something and several Korean politicians spoke out against content distributors who do not financially compensate ISPs Internet for traffic booms, depending on the point of sale.
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Netflix is being sued by a South Korean Internet service provider for costs caused by increased traffic to the popular “Squid Game” show. (Netflix)
Netflix said they will review the company’s request, open a discussion, and work to find a way to keep SK Broadband users out of trouble.
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SK said Netflix and YouTube – the only site that drives more traffic to the provider than the streamer – don’t pay network usage fees, but other sites like Amazon, Facebook, and Apple do.
“Squid Game” is fast becoming Netflix’s biggest hit. (Netflix)
Last September, Netflix’s data traffic managed by SK stood at 1.2 trillion bits of data processed per second, 24 times more than in May 2018, in part due to the success of shows like ” Squid Game “and” DP “.
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Last year, Netflix claimed in its own lawsuit against the provider that the expenses incurred by SK were part of its contractual obligation to customers and therefore should not be paid by Netflix.
‘Squid Game’ follows a group of people playing children’s games for large sums of money. (Netflix)
The Seoul Central District Court ruled against the streamer, saying that because SK provides “a service provided at a cost,” it is “reasonable” that Netflix is ”obligated to provide something in exchange for the service.”
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SK estimated the costs to Netflix at around 27.2 billion won ($ 22.9 million) in 2020 alone. The streamer had previously appealed the decision and proceedings will resume in December.
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