About Squid Game

Squid Game

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

The document underscores just how successful this one show has been for Netflix, and offers the clearest picture yet as to how the world’s most popular online TV network judges the success of its programming. Netflix has released self-selected viewership metrics for a handful of TV shows and movies, but it doesn’t share its more detailed metrics with the press, investors or even the programs’ own creators. Guessing the popularity of a given show has become something of a parlor game in Hollywood, even as Netflix has begun to release data in dribs and drabs.

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