Business & Investment

Netflix estimates that squid games will be worth about $ 900 million.

The NETFLIX series squid game will be played on your mobile phone with the illustration in this photo taken on September 30th. — Reuters

NETFLIX has the latest mega-hits Squid gameBloomberg’s numbers show that it will create nearly $ 900 million in value for the company, highlighting the plunge that a single mega-hit could create in the streaming era.

Netflix differs from movie studios and TV networks in that it doesn’t generate sales based on a particular title, but instead attracts customers weekly with catalogs and new releases of stable drum beats. However, the company has a wealth of data about what its customers are looking at and uses it to determine the value they can get from their individual programs.

Squid game It stands out for both its popularity and its relatively low cost. The Korean show about the people who helped in the deadly prize contest generated a $ 891.1 million impact. This is a metric that the company uses to assess the performance of individual shows. The show costs only $ 21.4 million and the episode is about $ 2.4 million. These numbers are from the first season and come from documentation detailing the show’s Netflix performance metrics.

This document highlights how successful this one show is on Netflix and provides the clearest picture ever on how the world’s most popular online TV network determines the success of its show. To do. Netflix has released self-selected ratings metrics for a small number of TV shows and movies, but it doesn’t share more detailed metrics with the press, investors, or even the creators of the show itself. Guessing the popularity of a particular show is like a parlor game in Hollywood, even if Netflix begins releasing data in dribble and dribble.

In a letter to Bloomberg, a Netflix lawyer said it was inappropriate to disclose sensitive data contained in documents reviewed by Bloomberg. “Netflix does not discuss these metrics outside the company and takes important steps to protect them from disclosure,” said the lawyer.

Some numbers are self-explanatory and reflect data already reported by Netflix and other services.Approximately 132 million people watch for at least 2 minutes Squid game In the first 23 days of the show, I broke the Netflix record set by Bridgerton.. The two-minute numbers are what Netflix has released to the public for some shows. According to the company, 111 million people started the show earlier this month, which is based on slightly older data.

Netflix has revealed the number of people who started the show, but not yet the number of people stuck to watch the show (stickiness) or the number of people who finished the series (completion rate) .. The Linear TV Network reports the average number of people who watched the show during that period. This makes Netflix’s two-minute numbers look bloated when compared.

in the case of Squid gameNetflix estimates that 89% of people who started the show watched at least 75 minutes (multiple episodes) and 66% of viewers, or 87 million, finished the series in the first 23 days. .. Anyway, people have seen over 1.4 billion hours of close-knit shows produced by Siren Pictures.

Viewer count details could help investors regain their enthusiasm for Netflix after months of bumpy months. Squid game It’s very popular. The company reported that the pace of subscriber additions was the slowest in the first half of this year since 2013, and blamed the lack of new hits due to some struggles. It also blamed the coronavirus, which delayed the production of television and movies. Its inventories declined for most of the year, chasing the market.

However, the company’s stock has risen almost 7 percent since its release. Squid game On September 17, the company was valued at $ 278.1 billion. Even investors who are critical of the company expect to raise either their third-quarter earnings or fourth-quarter forecasts (if not both).

“I think Netflix has found a healthy and profitable strategy through its content internationalization efforts. Squid game It’s a perfect example, “said Michael Pachter, an analyst at Wedbush Securities, in a note on October 14th. Pachter was Netflix’s biggest skeptic among Wall Street analysts. “This and that Seinfeld next door The fourth quarter launch should provide a solid cushion. “

Some of the indicators Bloomberg has seen are more specific, and it is not possible to collect from the documentation the data that Netflix uses to calculate each formula. Squid game Earn 353 points in Adjusted View Share (AVS). This reflects not only the number of viewers, but also how valuable those viewers are. (If AVS is greater than 9 or 10, it’s already considered high.) New customers or infrequently used Netflix viewers suggest that these shows aren’t canceled. , Is considered more valuable.

AVS is where Netflix begins to evaluate the show, according to current and former employees, and the impact numbers are AVS estimates for the duration of the show.

what Squid game Even more valuable is how popular it is compared to its low cost.The cost of the show is the recent Dave Chappelle Special, or crown.. Netflix measures this using a metric called efficiency, which measures viewership (or AVS) relative to cost. According to the documentation, if 1x efficiency is considered stable, the show’s efficiency will be 41.7x.Chapel Stick & Stones As Bloomberg reported this week, it was 0.8x. — — Bloomberg

Netflix estimates that squid games will be worth about $ 900 million.

https://www.bworldonline.com/netflix-estimates-squid-game-will-be-worth-nearly-900m/ Netflix estimates that squid games will be worth about $ 900 million.

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