Netflix Responds to Revenue Estimates for Squid Game Season 2

On January 1, 2025, Netflix issued a statement refuting claims that its hit series Squid Game Season 2 (오징어게임2) would generate revenues of 1.5 trillion won. The streaming giant expressed gratitude for the global interest in the show, which achieved the number one spot on Netflix's official rankings within its first week of release.

The controversy arose after K-Entertech Hub, a media research firm, estimated that Squid Game Season 2 would earn at least 1.5 trillion won, citing the first season's production cost of approximately 25 billion won and its revenue of 1 trillion won. Season 2's production budget reportedly increased to around 100 billion won, quadrupling that of the first season. Notably, Season 2 reached global number one status just one day after its release, maintaining that position for six days, which led to projections that its earnings could surpass those of Season 1.

Han Jeong-hoon, the head of K-Entertech Hub, stated that while Season 2 may not match the first season's profitability (which was 40 times its production cost), it is still expected to yield at least ten times its production cost. He also mentioned potential benefits such as an increase in Netflix's stock price and attracting new subscribers, reaffirming Korea's pivotal role in global content strategy.

However, Netflix countered these claims, stating that as a subscription-based service, it does not generate additional revenue from individual viewership or watch time. Therefore, it is impossible to calculate the financial success of a single title based on its popularity. The company emphasized that there is no official data available to estimate the monetary success of individual shows, and it does not evaluate performance in this manner.

Netflix further clarified that revenue predictions based on box office performance or pay-per-view models are not applicable to its subscription model, where members pay a fixed monthly fee for unlimited content access. The company expressed concern over the potential for misinformation stemming from incorrect analyses or claims regarding its business structure.

Squid Game Season 2 premiered globally on December 26, 2024, and quickly rose to the top of the TV show category in 93 countries within just two days, setting a new record for viewership in its first week.