Netflix Announces on 19th (Local Time)
3rd Quarter Paid Subscribers Increase by 4.4 Million
420 Billion Views of Parodies Generated on SNS
Merchandise Launch Planned for Fandom
4th Quarter Content Supply Recovery... 8.5 Million Net Increase Expected
[Asia Economy Reporter Minyoung Cha] Netflix, the world's largest online video service (OTT), recorded a paid subscriber net increase that exceeded expectations, fueled by the success of the Korean drama "Ojingeo Game" (Squid Game). In particular, it is evaluated that the "Ojingeo Game syndrome" was created by producing parodies and clip videos that recorded over 42 billion views on social networking services (SNS).
On the 19th (local time), Netflix announced in its Q3 shareholder letter that paid subscribers increased by about 4.4 million. This far exceeded Wall Street's previous estimate of 3.84 million. The total cumulative number of paid members is 214 million.
By region, the Asia-Pacific (APAC) region contributed the most with an increase of 2.2 million paid subscribers. The Europe, Middle East, and Africa (EMEA) region, which saw a large increase in subscribers in Q2, also recorded a net increase of 1.8 million.
In Netflix's Q3 content segment, the performance of Korean content "Ojingeo Game" stood out. Since its release on September 17, about 142 million households worldwide have watched it over four weeks.
Netflix stated, "There is no better example than Ojingeo Game, a Korean story that captured the zeitgeist of the world following Korea. Released on September 17, this program has become our biggest TV show."
Ojingeo Game has been adapted into various forms in internet culture. Netflix evaluated, "Ojingeo Game was selected as the number one program in 94 countries, including the United States, and spawned 'Saturday Night Live (SNL)' parodies with a total of 42 billion views, as well as TikTok memes and clips, penetrating the cultural zeitgeist."
The content was also linked to secondary derivative goods. Netflix said, "There is strong consumer demand for products celebrating the Ojingeo Game fandom," adding, "They will be available for sale soon."
Netflix forecasted a net increase of 8.5 million paid subscribers in Q4. For the entire year of 2021, it expects an operating profit margin of over 20%. Netflix added, "Except for delays caused by COVID-19, we plan to have a more normal content release schedule in 2022."
Analysts also expect many contents postponed to the second half of this year to be released soon, anticipating that users will flock to streaming services.
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