Netflix Being Sued Over Squid Game Internet Traffic

Squid Game is breaking records and on track to become one of Netflix’s biggest programs of all-time, so much so that the streaming service is being sued because of the show’s internet traffic. Squid Game is a South Korean survival drama centered on 456 people who compete in a series of children’s games with life-threatening consequences, all for a chance to win a $38.7 million prize. The series released on September 17 worldwide and quickly became one of Netflix’s most watched programs within its first week.

One of the reasons why the nine-episode series is so popular is due to its dark social satire that comments on South Koreans’ frustrations with the rising income inequality in Asia’s richest country. Squid Game depicts hundreds of marginalized communities in South Korea, including a North Korean defector and a debt-ridden father, literally competing for life or death. While competing for a hefty cash prize, the losing contestants are killed off during the games as the country’s rich elite idly watch the spectacle. Squid Game‘s theme has become so popular that it has prompted South Korean politicians to weaponize the series in an effort to attack their opponents in next March’s presidential election. It seems the show’s popularity is also being used for more than just political gain.

Reuters reports that Netflix is being sued over the increased internet traffic from Squid Game. South Korean based internet service provider, SK Broadband, is suing the streaming service to pay for costs associated with an increase of network traffic and maintenance due to a surge in viewers from Squid Game and other popular Netflix shows. SK Broadband must now process 1.2 trillion bits of data per second to handle Netflix’s traffic. The internet provider estimates that Netflix’s network usage fee was around $22.9 million in 2020 alone.

The legal move comes after a Seoul court said: “Netflix should ‘reasonably’ give something in return to the internet service provider for network usage.” Additionally, many South Korean lawmakers have been outspoken about content providers who “do not pay for network usage despite generating explosive traffic.” Netflix is South Korea’s second biggest data traffic generator behind YouTube, which SK Broadband says both streaming platforms are the only two who do not pay network usage fees. Netflix says it is reviewing SK Broadband’s claim and working with the firm “to ensure that customers are not affected.”

Given the court’s decision and SK Broadband’s claim, it seems Netflix should pay its fair share of network usage fees. This is especially true considering the fact that Netflix has been paying a fee in the United States for faster streaming service to the broadband provider Comcast Corp for the last seven years. While the success of Squid Game isn’t the sole reason for the lawsuit, it seems it’s the straw that broke the camel’s back. After all, if Netflix needs help coming up with the money, it can always compete in a series of children’s games.

Source: Reuters

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John Deloss
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John Deloss is a freelance entertainment writer for Screen Rant, having just recently joined the team. A California State University, Fullerton graduate with a B.A. in English, John is an aspiring writer hungry to make a name for himself — emphasis on hungry. When he’s not behind a keyboard, you can find him out on the trail backpacking or at home brewing beer.

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