Netflix estimates that its latest megahit, “Squid Game,” will create almost US$900 million in value for the company, according to figures seen by Bloomberg, underscoring the windfall that one megahit can generate in the streaming era.

Netflix differs from movie studios and TV networks in that doesn’t generate sales based on specific titles, instead using its catalogue 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 US$891.1 million in impact value, a metric the company uses to assess the performance from individual shows. The show cost just US$21.4 million to produce -- about US$2.4 million an episode. Those figures are just for the first season, and stem from a document that details Netflix’s performance metrics for the show.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook