Netflix’s ‘Squid Game’ success shines light on international discounts
Scene from the Netflix series “Squid Game”.
The streaming wars are a game where one company is successful and another fails.
NetflixThe exception is the “Squid Game”.
Netflix has its biggest hit ever with “Squid Game“The South Korean gory dystopian series, called “The ‘Dystopian Future” has taken the internet by storm. More than 111 million viewers globallyYou have seen at most two minutes of this show.
Hit series are a common source of competitive envy and anger. Netflix famously outbidHBO’s “House of Cards” was cancelled by HBO, a saddening realization for HBO executives almost a decade later. Netflix is not the only company cheering the “Squid Game”, as it opens the door for non-U.S. production. This allows media companies to make huge savings if foreign language television becomes an integral part of standard American households’ content intake. Amazon Apple DisneyNBCUniversal’s HBO Max by WarnerMedia, NBCUniversal Lionsgate‘s Starz and ViacomCBSWe are all searching for television series to capture global attention.
Hollywood studios can save millions by using local talent, instead of Hollywood celebrities. They also get tax credits and rebates for hungry countries looking to boost tourism and recognize their country.
Mago explained that incentive programs vary between countries. You may be able to market your country through the government or at festivals for free. Some countries may offer you local co-producers for free.
Domenic Romano is an entertainment lawyer who manages Romano Law. He said that Eastern European countries such as Hungary and Austria have always offered substantial tax credits and incentives to Hollywood. In the past, U.S. films used international locations to substitute for American set pieces.
Romano stated that they would travel to Canada or other countries offering tax incentives and drop American street signs and mailboxes. Then, they would change their cars’ plates and make it official. What’s new is that there is now local content coming from these areas. Studios are no longer masquerading.”
American viewers have traditionally viewed foreign-language films as niche content. Before “Squid Game”, very few non-English-speaking TV series were mainstreamed. Romano said that keeping local sets and actors saves significant production costs. Romano stated that hiring A-list Hollywood stars to remake hit shows can run into the millions.
Disney said this weekThe company plans to produce 27 more TV series in Asia Pacific, for Disney+ Hotstar as well as its Asian streaming service Disney+ Hotstar. Production costs for “Squid Game,” which cost just $21.4million, were only $44 million., Bloomberg reported this week.CNBC spoke with top entertainment executives about the costs of “Squid Game”, which has a U.S. casting and Union Production Regulations, that prevent the lengthy workdays. are allowed in South Korea,It is likely that it would have been between five and ten times greater.
Hollywood studios save on expensive intellectual property by investing locally in productions. Episodes of Disney+’s Marvel shows, such as “WandaVision” or “The Falcon,” cost Disney $25 million per episode — more than all nine episodes of “Squid Game” — This doesn’t take into account the $4 billion Disney paid back to acquire Marvel in 2009. Amazon Prime Video will release the first season of the “Lord of the Rings,” series. cost $465 millionAccording to New Zealand’s minister of economic development, the figure is approximately $250 million. Amazon spent approximately $250 million to acquire the Tolkien rights in 2017.
Creators who have been stuck in an industry that relied heavily on reboots and superhero movies for their reliable income may find the success of “Squid Game” a blessing. Artists and executives can benefit from new opportunities for growth by tapping the globe for stars and new ideas.
Romano stated that Netflix was one of the first South Korean streamers and is trying to win the “content race”. It’s almost like the Cold War arm race, but now it is the content race. Streamers compete to find the best content so that they can subscribe before their competitors.
The investors will get a clearer picture of how “Squid Game,” Netflix’s global streaming company, has performed on Oct. 19, as the international streaming giant began its expansion. announces third-quarter earnings.
Disclosure: CNBC’s parent company is NBCUniversal, Comcast.