CALIFORNIA: In a significant development, South Korean internet service provider SK Broadband and global streaming giant Netflix have amicably resolved their legal disputes.
The disagreement revolved around whether Netflix should bear the costs associated with increased network traffic and maintenance work. However, both companies have now chosen to put their differences aside and embark on a collaborative journey.
In a joint statement released on Monday, SK Broadband and its parent company, SK Telecom, joined forces with Netflix to announce a newfound partnership. This collaboration will not only put an end to the legal disputes but also pave the way for the creation of joint products and exploration of opportunities to utilize artificial intelligence (AI) products currently under development by SK.
The statement read, “Moving forward, SK Broadband and Netflix will end all disputes with the signing of today’s partnership, and collaborate as partners for the future. This declaration underscores their commitment to working together towards mutual growth and innovation”.
Both Netflix and SK Broadband confirmed the withdrawal of their respective lawsuits, signifying a shared desire to move past legal disagreements and focus on fostering a productive relationship. The lawsuits, initiated in 2020, revolved around the contentious issue of whether content providers with substantial network traffic should bear the associated usage costs. This matter raised concerns regarding the concept of “net neutrality” and its potential impact on consumer costs.
