The Strategist

Bloomberg: Netflix values 'Squid Game' series at nearly $900M

10/19/2021 - 07:01

Netflix has valued the South Korean series Squid Game at more than $891 million, Bloomberg reported, citing a company document. At least the beginning of Squid Game was watched by more than 130 million subscribers.

Streaming service Netflix has valued the South Korean series Squid Game at nearly $900 million, Bloomberg reported, citing a company document.

Netflix's projected value of the show turned out to be $891.1 million, Bloomberg writes. This figure reflects what "adjusted viewing share" (AVS) the service expects from the series for the entire time it has been on the platform, the agency notes, citing current and former employees of the company. AVS in turn takes into account the number of viewers of the series and how "valuable" they are. New users, or those who use Netflix less frequently, are considered more valuable because the series is the reason they presumably don't cancel their subscriptions.

Squid Game stands out not only for its popularity, but also for its relative low cost of production, Bloomberg notes. The agency points out that it spent $21.4 million, or roughly $2.4 million per episode, to create the series.

At least two minutes of the show were watched by about 132 million subscribers in 23 days after the series' release, Bloomberg points out. The agency notes that Squid Game broke the record set by the TV series Bridgerton. Among those who started watching Squid Game, 89% spent at least 75 minutes on the series, that is, watched more than one episode. It was watched in its entirety in the first 23 days by 66% of viewers, or 87 million people. In total, users have spent more than 1.4 billion hours watching the show. 

Netflix's document reflects how successful the series has been, and is the clearest demonstration to date of how the service measures the success of content, notes Bloomberg. A lawyer representing Netflix told Bloomberg that it would be wrong for the agency to disclose confidential data.