A new analytical tool projects that ‘Squid Game’ is on track to become Netflix’s most valuable title and cumulatively net $2 billion in revenue by 2027 — provided the series adds two more seasons.
Media reports have indicated that the second season of the monster global hit `Squid Game’ is in the works.
In its first-ever analysis of content valuation provided to Axios, a website that claims to provide smarter and intelligent reportage on relevant global issues, Parrot Analytics estimated that the series, with those additional seasons, will generate more than $2 billion in cumulative revenue by 2027.
According to a report by Axios, Netflix reportedly spent $21.4 million to produce ‘Squid Game’.
That lifetime value makes ‘Squid Game’ much more valuable to Netflix, on a profit margin basis, than some of Netflix’s more expensive investments in films such as ‘Red Notice’ and ‘The Gray Man’, which each cost Netflix roughly $200 million to produce.
Each film caps out at around $80 million in cumulative revenue for Netflix over the next six years, suggesting that pricey streaming films tend not to deliver the same level of lifetime value to streamers as do cheaper, bingeable series, the analysis stated.
“The entire industry is grappling with key questions right now about the future of content, and we’re excited to roll out an empirical solution to help the media and entertainment industry make sense of today’s attention economy,” said Parrot Analytics CEO Wared Seger.
“Content Valuation will help global entertainment leaders help sort through the uncertainty facing the industry — determining whether or not to acquire or produce a title, where it should be released and whether to go theatrical or not, the overall value contribution of a title to an existing library, the value of an entire library, determining projected value across multiple seasons for a TV show or the value of a film to a streamer five years after the fact, just to name a few,” Seger added.
Parrot Analytics, a firm used by many major Hollywood studios to understand audience demand for streaming content, plans to unveil a new measurement system that predicts the monetary value of streaming titles for a particular service.