Netflix has rejected SK Broadband’s demand that the streaming service pay for bandwidth usage.
SK Broadband filed a lawsuit against Netflix earlier this month after data traffic spiked following the global success of Hwang Dong-hyuk’s drama series Squid Game.
“We have come to a crossroads — Red Light, Green Light — where Internet gatekeepers could get to decide if the next great Korean story can be watched, and loved, by the world,” wrote Dean Garfield, Vice President of Global Public Policy at Netflix, in a blog post.
SK Broadband estimated that Netflix’s network usage fee for 2020 would amount to KRW 27.2 billion (approximately £16.6 million).
“The internet network is not free,” a SK Broadband spokesperson said. “Not only individuals, but also public institutions, government agencies and universities pay to use the internet network.”
Garfield invoked another Squid Game reference, saying the dispute should be a “Gganbu” story — one of partnership and mutual support — to help drive Korea’s creative industries forward.
“And, it is. Except for a single broadband player in Korea who is seeking to use its dominance to extract an arbitrary payment from streaming services like Netflix, for simply making our shows and films available on the internet to Korean consumers, who, mind you, are already paying for their internet connection,” Garfield wrote.
Netflix says it has built a Content Delivery Network (CDN) in collaboration with industry partners such as Samsung and Cisco through the Alliance for Open Media, and that it offers this infrastructure free to internet service providers (ISPs) worldwide.
According to Netflix, the CDN places content as close to viewers as possible to significantly reduce traffic across transit networks—cutting at least 95% of network traffic in many cases—and that the vast majority of its global ISP partners make use of it.
“Unfortunately, while more than a thousand ISPs around the world recognize these benefits, one of the largest internet companies in Korea is turning a blind eye. Why? Because by making both consumers and content providers pay, they can get paid twice,” Garfield concluded.
(Image Source: Netflix)
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