The real winner of ‘Squid Game’ is Netflix – to the tune of R13bn


The real winner of ‘Squid Game’ is Netflix – to the tune of R13bn

So far more than 130-million people have watched the South Korean show

Lucas Shaw

Netflix estimates that its latest megahit, Squid Game, will create almost $900m (R13.056bn) in value for the company, underscoring the windfall that one megahit can generate in the streaming era.

Netflix differs from movie studios and TV networks in that it doesn’t generate sales based on specific titles, instead using its catalogue and a steady drumbeat of new releases to entice customers every week. But the company does have a wealth of data concerning what its customers watch, which the company uses to determine the value derived from individual programmes.

Squid Game stands out both for its popularity and its relatively low cost. The South Korean show, about indebted people in a deadly contest for a cash prize, generated $891.1m (R12.927bn) in impact value, a metric the company uses to assess the performance of individual shows. The show cost just $21.4m (R310.5m) to produce — about $2.4m million (R35m) an episode. Those figures are just for the first season, and stem from a document that details Netflix’s performance metrics for the show...

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