Netflix is resisting a call by Korea's biggest ISP SK Broadband to start compensating the company for bandwidth usage. In a statement, Netflix highlighted the support it provides to the media industry in Korea and its efforts to optimise content delivery over internet networks.
SK Broadband is taking legal action against Netflix in Korea to claim network usage fees. Netflix said this brings the industry to a crossroads, where "Internet gatekeepers could get to decide if the next great Korean story can be watched, and loved, by the world". The streaming giant said the system called for by SK could mean the next 'Squid Games' - which is written and made in Korea - may not reach the same global scale.
Netflix said it has already spent over USD 1 billion to date on Korean content and it plans to spend more, as two production facilities are set up in the country. However, the closer partnership is at risk from "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," Netflix said.
The company also highlighted its efforts to ease the impact of its traffic on internet networks, such as the Open Connect content delivery network offered to ISPs. Netflix claims Open Connect reduces traffic by as much as 95 percent and said the "overwhelming majority" of its ISP partners, or more than 1,000 around the world, already use it.
