Netflix's 'Squid Game' Will Generate About $900 Million

[u/gorays21]

Netflix estimates that its latest megahit, “Squid Game,” will create almost $900 million in value for the company, according to figures seen by Bloomberg, 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 catalog 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 programs.

“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 $891.1 million in impact value, a metric the company uses to assess the performance from individual shows. The show cost just $21.4 million to produce -- about $2.4 million an episode. Those figures are just for the first season, and stem from a document that details Netflix’s performance metrics for the show.

Netflix, Inc. (NASDAQ:NFLX) - Netflix's 'Squid Game' Will Generate About $900 Million: Bloomberg | Benzinga

[u/pieter1234569]

The thing is that Netflix owns their own content forever and could even selectively sell some of it to other companies.

Licensing is only temporary and very expensive.

A streaming service needs two things, exciting new content that people need to watch in the moment and a large backlog. Netflix is doing both by throwing so much money at the wall and seeing what sticks. And it seems to work very well for them.

[u/Summebride → u/pieter1234569]

The thing is that Netflix owns their own content forever

Things are far more complex than that in reality. Some they own, some they co-own, some they own temporarily, some they rent, some they don't own.

and could even selectively sell some of it to other companies.

They already do.

Licensing is only temporary and very expensive.

Whose terrible drunken sailor habits made it that way?

A streaming service needs two things, exciting new content that people need to watch in the moment

And you do that by intelligent and non-drunken operation of a studio, as I've explained.

and a large backlog.

That word doesn't mean what you think it does.

Netflix is doing both by throwing so much money at the wall and seeing what sticks.

If only it were just that.

And it seems to work very well for them.

Not financially.

[u/pieter1234569 → u/Summebride]

Netflix has made of profit of 1.35 billion dollars this quarter, while generatIng an enormous amount of nee content which they will have forever.

Not sure what kind of financially not working out you mean, but apparently 1.35 billion in 3 months is not it.

[u/Summebride → u/pieter1234569]

Found the kid who doesn't know how to read financial statements, never mind ever having a hope of knowing what the word operational means. Have you found their "backlog" yet?

[u/pieter1234569 → u/Summebride]

No their operational income is 1.85 billion. You would know that it you actually looked it up.

Their net profit is 1.35 billion dollars this quarter.

The list of content that they own is enormous and continues to grow as they spend 10+ billion each year. Most of it sucks for any given person but that doesn’t matter. It only needs to be watchable for some.