"Concerns Over Possible Misunderstandings Regarding Corporate Structure"
Netflix has stated that the expectation that the Netflix drama 'Squid Game Season 2' will generate more than 1.5 trillion KRW in revenue is "not true."
On the 1st, Netflix expressed gratitude for the "great interest and love" shown to the proud Korean work 'Squid Game 2,' which ranked number one worldwide, but also released a statement saying, "There are parts that are completely different from the facts regarding the analysis of the individual work's profitability of 'Squid Game 2' announced by a domestic research organization, so we would like to clarify Netflix's position."
Netflix explained, "Subscription-based monthly services cannot generate additional profits based on the number of views or viewing time of individual works. It is impossible to calculate revenue based on the success of a single work," adding, "There is no official information that allows for the estimation of monetary profits from individual works. Furthermore, we do not evaluate works' performance in this way, nor can we."
Additionally, Netflix stated, "'Estimating or predicting additional revenue from individual works is suitable for box office results from movie theater ticket sales or revenue analysis methods centered on single-payment VOD services," and added, "This cannot be applied to subscription services where members pay a fixed amount monthly and can watch unlimited content."
Netflix emphasized, "We have a structure that produces globally loved works based on members' valuable monthly subscription fees," and expressed concern that "inaccurate information is spreading due to incorrect analyses or claims that could cause significant misunderstandings about this corporate structure."
Earlier, a domestic media research institute reported, "'Squid Game Season 1' generated about 1 trillion KRW in revenue with a production cost of approximately 25 billion KRW," and stated, "Considering that Season 1 took 8 days to reach number one, the expected revenue for Season 2 is estimated to be at least 1.5 trillion KRW." As evidence, they pointed out that 'Squid Game Season 2' recorded 487.6 million hours of viewing time in its first week, breaking the previous record of 448.73 million hours set by Season 1 in its first week. They also noted that Season 2 achieved the number one TV show rating in 93 countries within two days of release, which is much faster than the 8 days it took Season 1 to reach number one. Applying Season 1's trend, they analyzed that although it may not reach Season 1's profitability (40 times the production cost), it is expected to generate at least 10 times the production cost (about 100 billion KRW).
Meanwhile, according to Netflix's official site 'Netflix Top 10,' during the fourth week of December (23rd?29th), 'Squid Game Season 2' recorded 487.6 million hours of viewing time, ranking first in the non-English TV category, and also showing overwhelming viewing hours compared to the English TV category and English and non-English film categories during the same period.
This is the highest viewing time based on the first week of release, breaking the record of 448.73 million hours set by the predecessor 'Squid Game Season 1' in the fourth week of September 2021 (20th?26th), and ranks second all-time on a weekly basis, following the 571.76 million hours set by 'Squid Game Season 1' in the first week of October 2021 (September 27th?October 3rd).
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