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Chronicles

The story behind the story

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Internal document: Netflix estimates Squid Game will create almost $900M in value for the company; 87M viewers finished the series in the first 23 days

More than 130 million people have watched the Korean show  —  Netflix estimates that its latest megahit, “Squid Game,” …

Bloomberg Lucas Shaw

Context & Ripple Effects

The internal figure puts a number on what earlier coverage could only describe qualitatively: a show that was topping Netflix charts in 90 countries within days of launch is, per Netflix's own estimate, worth almost $900M against its production and marketing cost — an unusually clean ratio for a single licensed-market original. The document also quantifies engagement, with 87M households finishing all episodes in 23 days.

The arc matters because this is not a one-off hit but a strategy paying out over time. Netflix's playbook in Korea — developing concepts broadcasters deemed too risky and licensing them globally, as detailed in its South Korea approach — converted a local bet into the company's biggest launch ever, and later showed up as the lone bright spot of Asia-Pacific subscriber growth in April 2022.

First-order effects

  • Netflix now has internal proof that a non-English original can return near-$900M on a single series, which directly raises the budget ceiling and greenlight appetite for Korean and other international productions.

Second-order effects

  • Rivals chasing the same global-subscriber pool face a repriced market for Korean writers, directors, and production capacity, since Netflix has demonstrated the payoff of backing projects traditional broadcasters passed on.

Third-order effects

  • If the pattern holds, streaming competition structurally shifts from US-centric catalogs to whoever owns international IP pipelines, making local-language originals a core acquisition battleground rather than a niche content line.

The trend: Global streaming economics are being rewritten around non-English originals, with Netflix's internal valuation showing local-content bets can outperform domestic blockbusters on return.

Discussion

  • @kellybourdet Kelly Bourdet on x
    netflix metrics are incredibly closely held. very rare to get a picture into how shows actually perform. fascinating timing to get such specific insight leaked https://twitter.com/...
  • @lucas_shaw Lucas Shaw on x
    Some Saturday night news: Real Netflix viewership data. How many people have started Squid Game, how many people have finished it and how much Netflix thinks it will make from the Korean smash. https://www.bloomberg.com/...
  • @markham @markham on x
    Netflix thinks Squid Game will have close to a billion-dollar impact for the company. The series cost $21.4 million to make. https://twitter.com/... https://twitter.com/...