Netflix Faces Legal Action in Korea that Apple TV+ and Disney+ are Not Facing
I can see the point of view of local Korean web service providers who’s networks are being strained by high demand from Netflix:
Netflix finds itself in an increasingly difficult position after its global competitors opted to pay network fees in the Korean market through content delivery networks (CDN).
Korea Times
A CDN is a geographically distributed network of proxy servers and associated data centers. Content providers such as media companies pay CDN operators to deliver their content to end users.
The controversy over network fees snowballed in recent weeks, following the overwhelming popularity of Netflix shows such as “Squid Game.” Increased views have resulted in a spike in data traffic, which internet service providers claim is posing a burden to them.
SK Broadband is currently engaged in a lawsuit with Netflix over network fees. Netflix has maintained its stance that it will not pay for using local networks.
Netflix Vice President of Public Policy Dean Garfield last week reiterated at a press conference in Seoul that the company will use its open connect appliances (OCA) as a means to help alleviate the traffic.
You can read more at the link.
I understand that Netflix spent $25 millions for Squid Game, but earned $2 billion and counting on Squid Game alone. With that kind of obscene profit, it doesn’t hurt to pay a little for the amount of internet traffic they generated.
Well Netflix is loosing its appeal here.
As for its competition, I don’t see much competition coming from Apple TV+, when Disney+ opens in Korea this week, Disney is going to give Netflix a run for its money.
Especially if they offer a more competitive rate than Netflix.