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Netflix sued by South Korean ISP after Squid Game fans swell traffic to '1.2Tbps'

(2021/10/02)


Netflix should cover bandwidth and maintenance costs of a surge in our network traffic, says South Korean ISP SK Broadband, which has taken legal action after subscribers flocked to watch the streaming giant’s latest Korean-language TV show Squid Game.

SK Broadband is unhappy that the flow of packets through its systems repeatedly spikes in size as more and more folks in South Korea fire up Netflix. We're talking 1.2Tbps of Netflix traffic alone through the ISP in September, a claim by SK [1]reported by Reuters.

"We will review the claim that SK Broadband has filed against us," a spokesperson for Netflix told The Register on Friday. "In the meantime, we continue to seek open dialogue and explore ways of working with SK Broadband in order to ensure a seamless streaming experience for our shared customers."

[2]New on Netflix: A corporate drama in which staff are sued for abusing early access to financial data

[3]Facebook used facial recognition without consent 200,000 times, says South Korea's data watchdog

[4]Philippines approves digital services tax on streaming services, apps, even SaaS

[5]Salesforce gets into the vid-streaming with original content caper, promises digital inspriation

It’s not the first time both companies have clashed. SK Broadband urged the Korea Communications Commission in November 2019 to get web video giants like Netflix and Google’s YouTube to pay for network usage. Netflix sued SK Broadband in response to get the courts to decide whether it was obliged to compensate ISPs.

In June, judges in Seoul ruled in favor of the Korean broadband service and agreed Netflix should pay some reasonable sum to SK Broadband to handle the streaming titan's traffic, [6]according to The Korea Herald. SK said Netflix, which accounted for five per cent of South Korea's traffic in Q4 2020, owes $23m in network usage fees for that year alone. Netflix has appealed the decision, and court proceedings are expected to start in December.

[7]

SK Broadband’s latest lawsuit against Netflix appears to have been driven by its biggest traffic increase yet, and it seems the ISP either wants Netflix to foot some of its bandwidth bills or pay for increased network capacity, or both.

[8]

Netflix last Friday released Squid Game, a dystopian thriller in which hard-up characters desperately make it through a deadly competition to win a jackpot prize. Tens of millions of viewers have tuned in to watch the telly series, and it’s set to become Netflix’s most popular show yet.

The Register has asked SK Broadband for further comment. ®

Get our [9]Tech Resources



[1] https://www.reuters.com/business/media-telecom/skorea-broadband-firm-sues-netflix-after-traffic-surge-squid-game-2021-10-01/

[2] https://www.theregister.com/2021/08/19/sec_netflix_insider_trading/

[3] https://www.theregister.com/2021/08/26/facebook_fined_by_south_korea/

[4] https://www.theregister.com/2021/09/22/philippines_approves_digital_services_tax/

[5] https://www.theregister.com/2021/08/12/salesforce_plus_video_streaming/

[6] http://www.koreaherald.com/view.php?ud=20210628000798

[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YVfZkrSfiufonyBQpuawHwAAAMI&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YVfZkrSfiufonyBQpuawHwAAAMI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[9] https://whitepapers.theregister.com/



vektorweg

Sooo, an ISP sells bandwidth to customers and then complains to enablers when the customers use it?

IceC0ld

I can think of one way to settle it .................

who is up for a quick round of Squid Game ? :o)

Looks like the ISP wants 2 bites of the cherry

Cheshire Cat

Haven't the ISP subscribers already paid for this bandwidth? If they all happen to use it to access the same internet site, that's not the fault of Netflix.

The ISP is just being greedy. If they can't supply the bandwidth the customers paid for, then they should change their pricing structure.

Re: Looks like the ISP wants 2 bites of the cherry

Anonymous Coward

Yeah, pretty much this. The analogue in the physical world would be an airline overbooking its flights and then demanding that a destination city compensate it for putting on a festival that made people want to go there.

Oversubscribing any resource you sell should be illegal unless your contracts create explicit tiers of access. Want to be in a higher-priority tier? Pay more. Want to pay less? Accept that you'll sometimes get nothing. Promising something and failing to deliver should mean prison time.

Re: Looks like the ISP wants 2 bites of the cherry

Anonymous Coward

The big difference being that Netflix could cache their data within the ISPs network, eliminating the cost of purchasing international bandwidth.

Re: Looks like the ISP wants 2 bites of the cherry

Anonymous Coward

Annndd... who would pay for that? Hmm?

Re: Looks like the ISP wants 2 bites of the cherry

vekkq

the ISP is paying of course. they gonna save bandwidth and with that they save money.

Netflix should not pay

Ashto5

The ISP sells broadband

Netflix sells shows

The customer pays for both

Why should the ISP get money from Netflix?

It’s ridiculous

If Netflix and others didn’t produce the content then ISP’s wouldn’t be able to charge the silly monthly rates they do

Overselling

elsergiovolador

Takes another victim. Oh well...

Noncombatant: A dead Quaker.
-- Ambrose Bierce