Netflix’s latest superhit show Squid Game is likely to create nearly $900 million in value for the company, the streaming platform estimated. The valuation underscores the windfall a hit show can generate. The streaming platform does not generate sales based on specific titles but uses the data on what customers watch to determine the value derived from a specific programme.
The South Korean hit series Squid Game generated $891.1 million in impact value that Netflix uses to assess the performance from individual shows, according to a report in Bloomberg. But the popular show cost only $21.4 million to produce, which translates to roughly $2.4 million per episode. It cost less than a Dave Chappelle special or a couple of episodes of The Crown.
The streaming giant has released self-selected viewership metrics for a handful of TV shows and movies but has refrained from sharing its detailed metrics with the press, investors and even the programme’s own creators.
The data shows that Squid Game was watched by around 132 million people for at least 2 minutes in the first 23 days. This surpassed the record set by Bridgerton. The two-minute data is one of the few metrics released by Netflix for some of its shows. It is yet to disclose how many stuck around to watch more of the show or finished it.
The viewership data is likely to cheer investors, who have regained enthusiasm for Netflix after a few months of struggle. Slow production due to Coronavirus and paucity of new shows were said to have impacted Netflix’s performance.
However, shares in the company climbed nearly 7 per cent since the release of Squid Game, valuing the company at $278.1 billion.
Squid Game scored 353 points in adjusted view share or AVS, which considers how many people watched it and how valuable those viewers are. AVS of more than 9 or 10 is considered high. Moreover, new users or users who use Netflix less are viewed as more valuable.