According to insiders, SK Telecom and Netflix have resolved their dispute over network usage fees and have instead opted for a strategic partnership. This partnership aims to enhance the convenience of accessing and paying for Netflix shows and movies on mobile devices and IPTV for SK Telecom customers.
As part of the partnership, SK Telecom will provide various pricing options and product packages for users, including services that incorporate Netflix’s ad-supported pricing model. This collaboration is expected to improve entertainment experiences for a wider Korean audience.
It should also be noted that to improving convenience, SK Telecom is also exploring the use of AI technologies developed by SK Telecom to enhance the experience of Netflix customers. These technologies include conversational UX technologies and personalized recommendations.
The dispute between SK Telecom and Netflix began when SK Telecom initiated legal action against Netflix in October 2021. The main point of contention was who should bear the costs associated with the massive amount of data transmitted over mobile networks due to Netflix shows. In September 2021 alone, Netflix sent 1.2 terabits per second of content across SK Telecom’s network.
SK Telecom argued that Netflix should be responsible for the increasing costs incurred in managing this data traffic and demanded $24 million in network usage fees by 2020. On the other hand, Netflix claimed that it should not be penalized for its success and pointed out its content distribution network called Open Connect, which reduces network traffic by at least 95 percent.
While this partnership marks a new chapter for both companies, it has reignited the debate over net neutrality. Net neutrality advocates argue that all internet traffic should be treated equally without discriminating or charging differently based on content or source.
The resolution of this dispute through a strategic partnership highlights the broader issues surrounding net neutrality. As industry giants like SK Telecom and Netflix shape the future of digital entertainment together, discussions about how the internet should be governed and regulated are likely to continue.
The end result, after resolving their dispute over network usage fees, SK Telecom and Netflix have chosen to form a strategic partnership. This collaboration aims to improve the convenience of accessing and paying for Netflix content for SK Telecom customers. However, it has also reignited debates about net neutrality and the governance of the internet.
Source: (SK Telecom settles Netflix dispute with strategic partnership)(https://www.telecomstechnews.com/news/2023/sep/18/sk-telecom-settles-netflix-dispute-strategic-partnership/)
