South Korean ISP sues ‘Netflix’ After Traffic Surge From ‘Squid Game’ Popularity

Last updated: October 4, 2021

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Netflix’s new series ‘Squid Game’ got instant fame as soon as it hit the screens. However, SK Broadband, South Korean internet service provider announced on Friday that it had sued popular streaming platform due to a data surge caused by ‘Squid Game’.

As per Fortune,

In the US, Squid Game ranked number one in Netflix’s rankings just four days after its premiere, faster than any other non-English programme. It is expected to be seen by more than 82 million subscribers worldwide in its first 28 days.

According to SK Broadband,

The amount of data SK Broadband has seen from Netflix has increased by 24 times since May, 2018.

It shows the company has handled 1.2 trillion bits of data processed per second in September due to the unexpected success of ‘Squid Game’ and D.P. (Deserter Pursuit), another popular South Korean hit TV series.

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As a result, SK had to spend a lot of money in terms of network costs and maintenance primarily.

Earlier, a court in Seoul said that it makes sense if Netflix pays something to ISPs for the traffic in return. The streaming service is considered second in terms of traffic generation in South Korea after YouTube.

SK sued Netflix last year on the same grounds claiming Netflix should have paid US$22.9 million in 2020 in terms of network usage cost. But, the decision went in favor of Netflix.

As of now, the company wants to receive payment from Netflix after Seoul Central District Court ruled,

Netflix was obligated to provide something in return for the service.

Per The Verge,

Netflix will review the claim filed against it.

Netflix also told Reuters,

We contributed to 16,000 jobs in South Korea from US$650 million worth of investment.

Netflix’s spokesperson added,

In the meantime, we continue to seek open dialogue and explore ways of working with SK in order to ensure a seamless streaming experience for our shared customers.

Netflix has already appealed against the original ruling and a new court date is set for December.

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