South Korean Web Service Supplier Sues Netflix Over Squid Recreation
Scene from Netflix’s “Squid Game”
The South Korean Internet service provider SK Broadband is suing Netflix after the platform’s popular show “Squid Game” allegedly led to an increase in network traffic, Reuters reported for the first time on Friday.
The ISP is asking Netflix to pay the related maintenance costs stemming from a surge in network traffic for the dystopian thriller, which Netflix co-CEO Ted Sarandos said was well on its way on Monday, the “biggest Show of All Time “of the streaming giant.
Netflix stocks were slightly negative on Friday afternoon. The shares of SK Telecom, the parent company of SK Broadband, rose more than 1%.
“We are going to look into the claim that SK Broadband has made against us,” a Netflix spokesman said in an email statement to CNBC. “In the meantime, we continue to seek open dialogue and explore ways of working with SK Broadband to ensure a seamless streaming experience for our mutual customers.”
The news comes after a South Korean court said Netflix should pay SK Broadband “appropriately” for network usage. In recent months, the country’s legislature has also called on content providers like Netflix that don’t pay network usage fees.
Netflix said earlier this week that it helped create 16,000 jobs in South Korea. SK Broadband did not respond to CNBC’s request for comment.