Squid Game is Just What Netflix Needs
Relax. There are no plot spoilers in this article!
We wrote published a piece back in May about what Netflix needs to do to stay relevant. Our recommendations were (in no particular order):
- Consider Horizontal M&A Opportunities;
- Focus on User Growth — Not Streaming Revenue Growth;
- Double-Down on Consumer Products; and,
- Continue Investing in Top-Quality Original Content.
We’re happy to report that Netflix has taken our cue and implemented each of our recommendations!
Netflix has recently announced the acquisition of a video game development studio (horizontal merger: ✓) and its purchase of Roald Dahl’s catalog (a vertical merger). These acquisitions serve to both fill gaps in Netflix’s core competencies and to bolster its catalog in its never-ending battle with Disney and other SVOD companies for eye balls.
Netflix has also managed to check off the three remaining recommendations with Squid Game. This dystopian thriller show is much more than just a Korean-language version of Hunger Games. With Squid Game Netflix may have found the holy grail of entertainment media.
High Visibility in Popular Culture should Boost Subscriber Numbers
Squid Game provides a horror-filled 9-episode commentary on class inequality and social engineering. The show’s plot line follows tropes of class struggle from Russian literature dating back to the 1920s as well as byproducts of Asian fantasty genres including cartoon-like set designs and gratuitous violence. The editing is crisp, the sound design impeccable, and the plot leaves you on the edge of your seat.
Although the show premiered less than a month ago, Netflix’s CEO, Ted Sarandos, announced that Squid Game is on pace to become Netflix’s biggest series ever, potentially surpassing Bridgerton (which had over 82 million viewers following its first season), Lupin and The Witcher (the latter two of which both boasted 76 million viewers in their inaugural seasons).
If you’ve been on social media over the last few weeks, you’ll see how easily Sarandos’ claim can be verified. The show has become a sensation online with TikTok videos of people playing the red-light/green-light game with their pets as well as a number of hilarious memes related to the show’s plot line.
One of the most telling indicators is the report from Netflix itself that over 95 percent of the show’s viewers are (as of September 28th) outside of Korea.The show is, of course, extremely popular in Korea as well. It’s so popular that Korea’s main internet service provider, SK Broadband, is reportedly suing Netflix, claiming that Squid Game’s popularity is causing a surge in user activity and placing a heavy strain on its infrastructure.
The collision between artistic brilliance and high audience engagement is a perfect combination for Netflix and Wall Street analysts are already taking note. Following management’s discussion of the show’s success, Netflix’s stock has seen some upward momentum, with some analysts thinking that this show could be the key to improving Netflix’s subscriber numbers both in the United States and abroad.
A Consumer Product Goldmine Waiting to Happen
With Halloween season quickly approaching, Netflix could not have picked a better time to release a hit horror series. Squid Game is surely going to be one of the most popular costume choices for Halloweeners everywhere this season. And, with Amazon quickly selling out of all available costumes related to Squid Game, we’ll probably see a bunch of people come up with some pretty amazing costumes.
While the property lends itself naturally to Halloween, its sayings as well as the imagery used therein are starting to become ubiquitous in social media as well. The shapes used on now-made-famous the business card from the early episodes are immediately recognizable and are already being put on apparel, which should hit the shelves in the coming weeks.
Netflix was quick to capitalize on its success and has put Squid Game merch on its official US page, something that it was hesitant to do with other shows in the past. In the UK, Netflix has partnered with Zavvi to sell Squid Game merchandise, including shoes and pop-up shops in places such as Paris have also appeared.
One of the t-shirts available in the US allows customers to change their chosen design based on the various games featured within the show itself. The customization option is a creative and product manager’s dream come true, allowing Netflix to see what games in the show resonated best with their audiences.
A Natural On-Ramp to Gaming
Squid Game is, as the name suggests, a TV show about adults playing children’s games. The games featured therein are already being replicated onto Roblox, with dozens of fan-created simulations available for playing. One such game, made by Trendsetter Games, was created literally days after the show’s premiere and has already been played (as of October 4th) over 41 million times. It’s just one of dozens on the Roblox store, with many likely to follow.
Given Netflix’s push to becoming a full entertainment company, it wouldn’t be surprising to see Netflix utilize its new gaming development capacity to create its own official game on Roblox or other mobile platforms as well.
Have You Watched it Yet?
We would love to hear your opinions on what you thought about Squid Game and what you see its impact being on Netflix’s business. Drop your comments down below and let us know what you think!
