“Not True”: Netflix Urgently Addresses 'Sensitive' Claims About 'Squid Game' Season 2

Netflix has issued an official statement addressing claims about projected profits from its highly anticipated original series, 'Squid Game' Season 2. The streaming giant quickly countered a report by a domestic research organization, stating that the profit analysis for the individual series was inaccurate.

On January 1, Netflix released a statement titled "The Profit Claims for 'Squid Game 2' Are False" and clarified, "As a subscription-based service, Netflix does not generate additional revenue based on viewership or watch time for individual titles. It is impossible to calculate revenue based on the success of a single title."

Netflix operates on a subscription model where members pay a fixed monthly fee to access unlimited content. This differs fundamentally from models like box office revenue or VOD sales, making it inappropriate to analyze the monetary success of individual titles within Netflix’s ecosystem.

The company also emphasized that it does not evaluate the success of its titles using monetary profit metrics, nor does it provide official data for such assessments. Netflix expressed concern that misleading analyses could perpetuate misunderstandings about its operational model.

The controversy stems from the unprecedented success of 'Squid Game' Season 1, which reportedly cost ₩25 billion KSD to produce and generated an estimated ₩1 trillion KSD in global revenue. With expectations running high for Season 2, a media research institute, K-EnterTech Hub, recently claimed that the second season could bring in over ₩1.5 trillion KSD, potentially yielding more than ten times its production cost. Netflix, however, dismissed these projections as irrelevant to its operational framework.

Netflix reiterated the pivotal role of Korean content in its global content strategy. Original series like 'Squid Game' have not only earned widespread acclaim but also contributed significantly to subscriber growth worldwide. While such successes influence Netflix's market value and subscriber acquisition, the company stressed that these effects are distinct from individual title profit calculations.

Netflix warned that attempts to estimate revenue for individual titles could misrepresent the essence of its subscription-based service. The platform reaffirmed its commitment to producing globally beloved content through members' subscriptions and pledged to continue addressing misinformation.

As global attention on Netflix and the 'Squid Game' series grows, the importance of accurate information and interpretation becomes ever more crucial.