Squid Game Season 2 Won’t Make Netflix Billions

By The Malketeer

The Billion-Dollar Prediction That Got It Wrong

When K EnterTech Hub, a South Korean media research group, projected that Netflix’s Squid Game Season 2 would generate US$1 billion (RM4.48 billion) in revenue, the internet buzzed with excitement.

Their analysis was based on the groundbreaking success of the first season, which cost 25 billion won to produce and reportedly brought in around 1 trillion won—an astounding 40 times return on investment.

With the production budget of Season 2 ballooning to 100 billion won, predictions of 1.5 trillion won in revenue seemed plausible.

But Netflix swiftly set the record straight.

Netflix’s Revenue Model Explained

Unlike traditional entertainment models such as box office or pay-per-view, Netflix’s business hinges on its subscription-based structure.

This distinction is crucial.

In a statement to The Korea Times, Netflix firmly denied the billion-dollar revenue estimate, emphasising that their financial metrics do not operate on individual show performance.

“As a monthly subscription service, Netflix cannot generate additional revenue based on the number of views or viewing time of individual works,” the company clarified.

Instead, Netflix’s success lies in retaining and expanding its subscriber base.

Shows like Squid Game undoubtedly contribute to this growth, but the financial impact isn’t calculated per series.

Debunking the Myths of Streaming Economics

Netflix’s statement highlights a recurring misunderstanding about how streaming services generate revenue.

By subscribing to Netflix, viewers gain access to a vast library of content, meaning no single title—no matter how viral—directly boosts revenue in the way box office hits do.

Revenue projections grounded in viewing numbers or performance data from individual shows are simply not applicable to Netflix’s model.

“We express concern about the spread of inaccurate information that could cause significant misunderstandings about this business structure,” Netflix cautioned.

Squid Game’s Unstoppable Momentum

Regardless of revenue projections, Squid Game Season 2 is already a massive hit.

Premiering on December 26, 2024 it topped viewership charts in 93 countries within two days, breaking records within its first week.

This phenomenal reception underscores Netflix’s strategy—investing in compelling global stories that keep audiences engaged and subscriptions intact.

What Brands Can Learn from Netflix

Netflix’s response to revenue speculation offers a key lesson for marketers and brands: success is not always tied to direct, measurable returns.

Building loyalty and maintaining long-term engagement are equally important.

Squid Game Season 2 isn’t just a survival drama; it’s a reminder that sometimes, the bigger picture matters more than the balance sheet.

Netflix may not be counting billions from Squid Game, but the show’s cultural impact and subscriber appeal make it worth every won of investment.