South Korean internet service provider SK Broadband is suing Netflix, after the platform’s popular show “Squid Game” allegedly led to a surge in network traffic, Reuters first reported Friday.
The internet provider is asking Netflix to pay for associated maintenance costs resulting from a spike in network traffic for the dystopian thriller that Netflix co-CEO Ted Sarandos said Monday is on pace to become the streaming giant’s “biggest show ever.”
Netflix shares were slightly negative Friday afternoon. Shares of SK Telecom, SK Broadband’s parent company, were up more than 1%.
“We will review the claim that SK Broadband has filed against us,” a Netflix spokesperson said in an email statement to CNBC. “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.”
The news comes after a South Korean court said Netflix should “reasonably” pay something to SK Broadband for network usage. In recent months, lawmakers in the country have also called out content providers such as Netflix that do not pay network usage fees.
Netflix said earlier this week that it has helped create 16,000 jobs in South Korea.
SK Broadband did not respond to CNBC’s request for comment.