SK Broadband Co., a major South Korean internet service provider, declared on Monday that it had reached an agreement with Netflix to put an end to their long-running legal battle over network usage fees.
“We have agreed to settle our disputes and work together as partners for the future,” the company stated, without providing further details of the deal.
The dispute between SK Broadband and Netflix had been ongoing for years, with the former claiming that the streaming service was taking advantage of its network without paying for the excessive traffic it was generating.
SK Broadband reported that the amount of data transmitted through its network had grown to 1,200 gigabits per second (Gbps) in September 2021 from 50 Gbps in May 2018, largely due to the immense popularity of “Squid Game” and other Korean-language drama series.
Netflix argued that it should not be charged for network usage fees since the users had already paid for the service.
In June 2021, a local court ruled in favor of SK Broadband, determining that Netflix should provide something in return for the use of its network. Netflix appealed the decision, and the lawsuit was still pending.
As part of the agreement, SK Broadband, its telecommunications affiliate SK Telecom Co., and Netflix entered into a strategic partnership to improve customer service. SK Broadband and SK Telecom plan to launch new services that will provide access to Netflix on their pay TV platform and smartphones starting the first half of next year.
brk@yna.co.kr
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