“It is impossible to calculate profits from the success”- Netflix refutes rumors of 1.5 trillion won earnings from Squid Game 2

Netflix has released a statement disputing certain claims made by domestic research groups regarding the profitability of Squid Game season 2, as reported by Maeil Business Newspaper on January 1, 2025. According to Netflix’s statement on January 1, some analyses suggesting the series could generate at least 1.5 trillion won in revenue are inaccurate.

“There are parts that are completely different from the facts regarding the analysis of the return on individual works of Squid Game season 2 released by a domestic research group... It’s impossible to calculate profits this way,” stated Netflix.

The much-awaited Squid Game season 2 was released on December 26, 2024. While it has received mixed reviews from fans, as many were disappointed with the cliffhanger ending, the viewership soared regardless.

Within two days of release, it topped viewership ratings in 93 countries, scoring a perfect 930 points on FlixPatrol, as per Naver's January 1 report. This achievement surpassed season 1, which required eight days to reach similar heights.

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Netflix explains why the calculations are wrong

Netflix further explained that such estimations are more applicable to video-on-demand (VOD) platforms, which rely on box office performance or one-time payments, such as movie ticket sales.

They emphasized that these methods do not align with the subscription-based model Netflix employs, where users pay a fixed fee for unlimited access to content each month. Netflix also expressed concern over the potential spread of misinformation.

"We are concerned about the spread of inaccurate information due to incorrect analysis or claims that can cause great misunderstanding of the corporate structure," they responded.

Previously, media research institute K-Entertech Hub had projected that Squid Game season 2 could generate at least 1.5 trillion won in profits. According to their analysis, production costs of the second season increased to roughly 100 billion won—four times that of the first season, as reported by Maeil Business Newspaper.

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Squid Game season 2 breaks season 1 records

Season 2 of the famous thriller series became the biggest Netflix TV debut, with 68 million views. While foreign media offered mixed reviews on its overall quality, the sequel quickly broke records.

As per Naver's January 1 report, K-Entertech Hub CEO Han Jeong-hoon predicted profits at least 10 times higher than production costs, estimated at 1.5 trillion won, which Netflix refuted. Han also highlighted the series' additional benefits, like boosting Netflix's stock value and attracting new subscribers, solidifying Korea’s pivotal role in global content strategy.

Some analysts speculate that season 2 could ultimately surpass the profitability of its predecessor. As per Naver, historical trends from Netflix series like Stranger Things suggest that profits significantly increase from season 3 onwards, driven by new subscribers, merchandising, brand collaborations, and theme park ventures. Many additional metrics also underline the latest season's success.

Parrot Analytics reported that season 2’s "travelability" in the U.S. reached 108%, exceeding demand in Korea. Similarly, the series showed strong performance in France (95%), Russia (81%), and Taiwan (80%). Meanwhile, social media mentions of Squid Game totaled 3.1 million between November 2023 and December 2024, with an estimated 5.19 billion potential exposures.

As per Naver, Forbes also noted season 2’s cultural resonance, highlighting Korean traditions like 'ddakji nori' and linguistic insights into terms like "noona" and "oppa."

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Netflix’s rebuttal emphasizes the complexity of evaluating revenue within the subscription-based streaming service model. Meanwhile, Netflix has confirmed plans to release season 3 later this year.