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Netflix’s “Squid Game”: 25.3 billion won invested, 1 trillion won in profits

The value of the global hit Netflix series “Squid Game” is estimated to be $891 million (about 1 trillion won).

On Oct 17th (KST), after obtaining and analyzing Netflix’s internal documents, Bloomberg reported about how the “impact value” of the “Squid Game” was evaluated. “Impact value” is an indicator used by Netflix to evaluate the value of individual works internally. 

Netflix has released ratings indicators for very few works. However, it has never disclosed specific indicators not only to the media and investors, but also to program producers. Bloomberg’s document reportedly specifically describes how successful the “Squid Game” was. 

The number of people who watched “Squid Game” for more than two minutes reached 132 million within 23 days of its release. Netflix had reported before that 111 million people watched “Squid Game.” Bloomberg said, “This is a figure based on somewhat old data.” 

In addition, 89% of viewers who started watching “Squid Game” watched at least one episode. 87 million viewers, or 66% of them, completed the streaming until the last episode within 23 days of its first release. 

The combined time it took for viewers around the world to watch “Squid Game” amounts to 1.4 billion hours, the report showed. In terms of the number of years, it is 159,817 years. 

squid game

“Squid Game” scored 353 points in Netflix’s internal indicator, AVS. If each work obtains an AVS of 9 to 10, it is evaluated at a high level. If a user who does not use Netflix often, or a more recently newly subscribed user watches the series/movie, the higher the score is given on AVS. This means the user has newly subscribed or has not canceled the subscription to see the content . The higher the AVS, the higher the “impact value” which indicate the value of the series/movie. 

“Squid Game” also stood out in efficiency. The production cost was $21.4 million (about 25.3 billion won) which is worth 2.8 billion won per episode. This is not significant compared to the $8 million (9.5 billion won) and $10 million (11.9 billion won) investment per episode of Netflix’s popular works “Stranger Things” and “The Crown,” respectively. 

squid game

However, “Squid Game” generated about 1 trillion won in value at a low production cost, raising 41.7 times in efficiency indicators.

Source: Nate

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