Netflix is facing a lawsuit by South Korean internet service provider SK Broadband over increased network costs and bandwidth usage brought on by users watching Squid Game. According to Reuters, this sort of lawsuit is nothing new in the country. In fact, courts tend to side with internet service providers in the region saying that Netflix is responsible for the strain it puts on networks with its shows and content.
The streaming provider has since countered the claim against them. Netflix says that while they might be responsible for the network strain at SK Broadband, customers are the ones watching Squid Game and paying for the internet service. However, the court thinks otherwise and says that Netflix will have to pay SK Broadband.
In June 2020, Netflix faced another lawsuit against them by SK Broadband where the court ruled against the streaming service. Netflix was forced to pay around $23 million in damages. At the time of writing, it is unclear how much this new case might set them back. Netflix says they are reviewing the claim.
We will review the claim that SK Broadband has filed against us. In the meantime, we continue to seek open dialogue and explore ways of working with SK Broadband in order to ensure a seamless streaming experience for our shared customers.
Squid Game is set to become Netflix’s biggest show ever. Within its first four days of release, it became the most-watched new show on the service. It is trending in the US and in South Africa, Squid Game has remained at the top most-watched list for over a week now.
Netflix is investing heavily in Korean film and TV but at the same time, the company is determined to release this content in other regions. Squid Game is one of the first original shows to follow this new business model. However, if Netflix plans on continuing down this path, the company might face even more lawsuits from other internet providers in the region.