Netflix Q3 Financials Eyeing ‘Squid Game’ Largesse

NEWS ANALYSIS — When Netflix reports third-quarter fiscal results after market close on Oct. 19, expect the streamer to have gotten a boost from “Squid Game,” the new South Korean horror/thriller that has captivated subscribers worldwide.

The show involves heavily indebted people who compete in children’s games for a chance to win big cash prizes, though the challenges come with fatal consequences.

The nine-episode series, which debuted Sept. 17, is reportedly projected to generate a near $900 million windfall for the Netflix, which tracks a program’s “impact value” analyzing how often it’s watched by new and existing subscribers in relation to the program’s production cost.

“Squid Game” had a reported $2.4 million episodic production cost, which translates to $21.4 million for the first season.

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Netflix said 132 million subs streamed at least two minutes of the show in its first 28 days of release, which topped the previous record of 82 million set by Shonda Rhimes’ “Bridgerton.” The streamer contends that 89% of viewers streamed at least 75 minutes of the series; 66% of viewers finished the series in the first 23 days.

Seeking Alpha contends Netflix subs spent more than 1.4 billion hours watching the show, which is more than double the total hours watched for “Bridgerton.”

The series has already sent Netflix shares of 7% since its debut. Wall Street films believe the streamer added 3.5 million subs in Q3 (ended Sept. 30), and will add 8.5 million subs in the fourth quarter. The streamer added just 1.5 million subs in Q2 — its lowest quarter of additions since 2013.

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