Netflix estimates that its latest megahit, “Squid Game,” will create almost $900 million in value for the company, according to figures, underscoring the windfall that one megahit can generate in the streaming era.
Netflix differs from movie studios and TV networks. It doesn’t generate sales based on specific titles. Instead, it uses 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 detailing Netflix’s performance metrics for the show.
In the case of “Squid Game,” Netflix estimates that 89% of people who started the show watched at least 75 minutes (more than one episode), and 66% of viewers, or 87 million people, have finished the series in the first 23 days. All told, people have spent more than 1.4 billion hours watching the show, which closely held Siren Pictures produced.
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