Scene from “Squid Sport” by Netflix
South Korean web service supplier SK Broadband is suing Netflix, after the platform’s fashionable present “Squid Sport” allegedly led to a surge in community visitors, Reuters first reported Friday.
The web supplier is asking Netflix to pay for related upkeep prices ensuing from a spike in community visitors for the dystopian thriller that Netflix co-CEO Ted Sarandos stated Monday is on tempo to develop into the streaming large’s “largest present ever.”
Netflix shares had been barely damaging Friday afternoon. Shares of SK Telecom, SK Broadband’s dad or mum firm, had been up greater than 1%.
“We’ll overview the declare that SK Broadband has filed towards us,” a Netflix spokesperson stated in an electronic mail assertion to CNBC. “Within the meantime, we proceed to hunt open dialogue and discover methods of working with SK Broadband with the intention to guarantee a seamless streaming expertise for our shared prospects.”
The information comes after a South Korean courtroom stated Netflix ought to “fairly” pay one thing to SK Broadband for community utilization. In current months, lawmakers within the nation have additionally known as out content material suppliers reminiscent of Netflix that don’t pay community utilization charges.
Netflix stated earlier this week that it has helped create 16,000 jobs in South Korea.
SK Broadband didn’t reply to CNBC’s request for remark.