Netflix has estimated that “Squid Game” is worth almost $900 million in value, according to a report in Bloomberg. Unlike movie studios and TV networks, Netflix puts its catalog and new releases to use to garner viewership every week.
An unclosed data bank is used by the company to determine the value derived from its shows based on what the users watch. Thanks to its relatively low cost and high popularity, “Squid Game” has managed to stand out and make its mark.
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The South Korean show has generated over $891.1 million in impact value, while it cost only $21.4 million to produce it.
An attorney representing Netflix told Bloomberg in a letter that it would be “inappropriate for Bloomberg to disclose the confidential data contained in the documents that Bloomberg had reviewed.”
“Netflix does not discuss these metrics outside the company and takes significant steps to protect them from disclosure,” the attorney said.
Close to 132 million people have reportedly watched at least two minutes of “Squid Game” in the show’s first 23 days, breaking “Bridgerton’s” record. Netflix estimates that 89% of people who began watching “Squid Game”, watched at least 75 minutes and 66% finished the series in the first 23 days.
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“We think Netflix has found a sound and profitable strategy with its content internationalization efforts, with ‘Squid Game’ a perfect example,” Michael Pachter, an analyst with Wedbush Securities, wrote in an October 14 note. “This and its ‘Seinfeld’ launch in Q4 should provide a solid cushion.’
Netflix measures the relativity of its show’s cost to its performance using a metric called efficiency, which measures viewership (or AVS) relative to cost. The show has a mark of 41.7x in efficiency, according to the document, when an efficiency of 1x is considered solid. Chappelle’s “Sticks & Stones” was 0.8x, as Bloomberg reported this week.
