South Korean Internet Provider Sues Netflix Over Squid Game
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Internet service provider company SK Broadband is suing Netflix for not paying network usage fees - and it's all because of Squid Game.
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The court document estimated Netflix's needed network usage fee of about $22.9 million in 2020.
SK Broadband, a South Korean internet service provider, has sued Netflix for resulting in the increase of network traffic and maintenance costs caused by the huge demand on watching the new Squid Game series, according to an SK spokesperson.
A Seoul court ruled that Netflix should "reasonably" pay internet service providers in return for network usage and generating traffic.
In addition, several South Korean lawmakers have pointed out the fact that content providers, such as Netflix, do not pay for network usage, although their content generates huge traffic.
The court document estimated Netflix's needed network usage fee of about $22.9 million in 2020.
For its part, Netflix said it will review SK's lawsuit and hold talks with the company to ensure that customers are not affected.
Current hit series, Squid Game, and other Netflix series have maintained the US company's position as South Korea's second-largest data traffic generator following YouTube.
However, the two companies are the only ones not paying network usage fees, unlike other content providers such as Apple and Facebook, according to SK.
In a statement, Netflix stated that it created about 16,000 jobs in South Korea in addition to an economic effect of about $4.7 billion.
