That popularity can also have some downsides is being experienced by Netflix, which has a global hit in hand in South Korean show ‘Squid Games’ as also a demand for compensation.
South Korean Internet service provider SK Broadband has sued Netflix to pay for costs from increased network traffic and maintenance work because of a surge of viewers to the US firm’s content, an SK spokesperson said last week.
The move comes after a Seoul court said Netflix should “reasonably” give something in return to the internet service provider for network usage, and multiple South Korean lawmakers have spoken out against content providers who do not pay for network usage despite generating explosive traffic, Reuters reported from Seoul.
Netflix said it would review SK Broadband’s claim, seek dialogue and explore ways in the meantime to work with SK Broadband to ensure customers are not affected.
The popularity of the hit series ‘Squid Game’ and other offerings have underscored Netflix’s status as the country’s second-largest data traffic generator after Google’s YouTube, but the two are the only ones to not pay network usage fees, which other content providers such as Amazon, Apple and Facebook are paying, SK said.
Netflix’s data traffic handled by SK jumped 24 times from May 2018 to 1.2 trillion bits of data processed per second as of September, SK said, riding on the success of several Netflix productions from Korea including ‘Squid Game’ and ‘D.P’.