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S.Korean Broadband Firm and Netflix Resolve Cost Disputes
Updated: Jan 9
SK Broadband, a South Korean internet service provider and Netflix have announced that they are putting an end to all legal disputes between them.
The companies had been at odds over whether Netflix should bear the costs associated with increased network traffic and maintenance work. However, they have now reached an agreement to collaborate as partners and release joint products.
In a joint statement, SK Broadband, parent company SK Telecom and Netflix expressed their commitment to working together and exploring opportunities to utilise artificial intelligence (AI) products developed by SK. The statement also confirmed that both parties have withdrawn their lawsuits, marking the resolution of their long-standing dispute.
The legal conflict between SK Broadband and Netflix dates back to 2020 and revolved around the question of whether content providers generating high volumes of traffic should be responsible for network usage costs. The resolution of this dispute is seen as a positive step towards fostering a more cooperative relationship between internet service providers and content providers.
The partnership between SK Broadband and Netflix holds significant potential for both companies. SK Broadband is one of South Korea's leading internet service providers, while Netflix is a global streaming giant with a strong presence in the South Korean market. By joining forces, they can leverage their respective strengths to deliver innovative products and services to consumers.
This resolution also aligns with the principle of net neutrality, which advocates for equal treatment of all internet traffic. The agreement between SK Broadband and Netflix ensures that the costs associated with network usage will not be unfairly burdened on either party, ultimately benefiting consumers.
The joint statement did not provide specific details about the terms of the partnership or the nature of the joint products that will be released. However, it is expected that the collaboration will focus on leveraging SK's AI capabilities to enhance the streaming experience for Netflix users and explore new avenues for growth in the evolving digital landscape.
SK Broadband and Netflix have resolved their disputes over costs and have withdrawn their lawsuits against each other.
The companies have announced a partnership to release joint products and explore opportunities to utilise SK's AI products.
The resolution aligns with the principle of net neutrality and ensures fair distribution of network usage costs.
Source: REUTERS