South Korean operator SK Telecom (SKT), its broadband subsidiary and Netflix ended all ongoing disputes related to network traffic payments after forming a strategic partnership to launch content packages combining mobile and IPTV offerings.

As part of the deal, SKT and SK Broadband will introduce services combined with the streaming giant’s ad-supported price plan, with new products for local customers to be gradually released from the first half of 2024, the companies said in a statement.

In addition, the three will look at using AI technologies developed by the Korean companies, such as a conversational user interface and personalised recommendation technologies.

Netflix VP of APAC partnerships Tony Zameczkowski said the deal will enable it to improve entertainment experiences for a broader Korean audience, adding “we have high expectations for the journey ahead”.

SKT head of corporate strategy office Choi Hwan-seok stated it will continue to evolve into an AI company and work together with various players at home and abroad.

After SK Broadband filed a legal case against Netflix in October 2021, calling for the video streaming service to pay for costs from increased network traffic, South Korea’s parliament began debate into draft bills to ensure Netflix and Google pay a fair price for network access as traffic surges.