SKT, SKB, and Netflix Withdraw Network Usage Fee Lawsuit... End of Dispute

SKB IPTV Also Streams Netflix
Specific Contract Details Kept Confidential... "OCA Free Deployment"

Netflix and SK Telecom·SK Broadband have ended the prolonged legal battle that began in 2020. On the morning of the 18th, both parties withdrew lawsuits related to network usage fees and concluded the dispute. They also agreed to establish a cooperative relationship by signing a strategic partnership to enhance customer benefits using artificial intelligence (AI) technology and other means.

Previously, SKB applied for mediation with the Korea Communications Commission in 2019, claiming that Netflix's traffic was surging every year, causing enormous transmission cost burdens, but Netflix refused to negotiate network usage fees. Netflix filed a declaratory judgment lawsuit at the Seoul District Court in April 2020, arguing that it had no obligation to pay network usage fees. In June 2021, the court ruled in favor of SKB in the first trial. Netflix appealed, and SKB filed a counterclaim, but the dispute ended with the signing of this partnership.

[Image source=Yonhap News]

With SKT, SKB, and Netflix entering reconciliation mode, SKB users, who were the only ones among the three IPTV providers unable to watch Netflix on their IPTV platform, will now be able to watch Netflix. SKT and SKB plan to provide an environment where customers can conveniently watch Netflix on smartphones and IPTV (B tv), and prepare bundled subscription plans. They will also launch Netflix combined products on SKT’s subscription service T Wooju and introduce products related to Netflix’s ad-supported plans. These will be released sequentially starting in the first half of next year. They also plan to explore ways to create a consumer-friendly entertainment experience using AI technologies such as conversational UX and personalized guides.

However, both parties remained silent on the specific contract details, including payment of network usage fees. Choi Hwan-seok, SKT’s Head of Business Strategy, stated, "This strategic partnership with Netflix started from SKT and SKB’s philosophy of prioritizing customer value, and is the result of a magnanimous agreement to provide customers with a better media service environment by integrating the technologies accumulated by SKT."