Netflix Inc is pushing back against a South Korean Internet provider’s demand that it pay to use their network after hits like Squid Game caused a surge in data traffic, saying the move could prevent entertainment firms from working profitably in the country.
SK Broadband Co is suing Netflix to claim fees for using its network, while the streaming giant is appealing an earlier refusal by a Korean court to confirm it’s not liable for such payments. While the immediate financial impact of a network usage fee on Netflix remains unknown, it’s likely to grow “exponentially” over time, the streaming platform’s vice-president of public policy Dean Garfield told Bloomberg in an interview.