The Real Cost of Squid Game Season 2 Will Shock You

Reports suggest that the first season of Squid Game cost only $21.4 million, or about $2.4 million per episode, which is incredibly low for many Western dramas. Amazingly, this number is very low, considering that within a few months after the release of the series, it reportedly generated $900 million in value for Netflix.

Certainly, the returns on investment were huge, considering that Squid Game became Netflix’s most-watched show to date, gathering 1.65 billion viewing hours in the first four weeks of its release.

This huge success raised the bar high for Season 2 in both storytelling and production quality. Keen to capitalize on this momentum, Netflix made an executive decision: substantially increasing the budget for a second season.

Season 2 Budget: A Quantum Leap

Reports said Netflix invested around ₩100 billion, about 84 million USD, for Season 2 – almost four times what it was investing in Season 1. With the bigger budget came:

• More sophisticated set designs, such as complicated arenas for games using special visual effects.
• Advanced CGI and special effects will enrich the whole experience.
• Increased salaries for returning cast members, as well as the addition of high-profile talent.
• Better quality of production in terms of cameras and sound.

The investment underlines Netflix’s confidence in the series as a flagship property that will drive subscriber growth and retain current subscribers.

Where did the money go?

With that in mind, let’s look a little more deeply at the specific areas in which Netflix invested that increased budget:

1. Detailed Sets and Production Design

From the pastel-coloured staircases that seemed to take their cue from M.C. Escher to the basic, even unsettling simplicity in which the games were staged, some of the most striking and unsettling set designs are what define Squid Game. Production design was huge in its success. For Season 2, however, the stakes went higher.

With a bigger budget, they can afford not only more games in each arena but larger arenas, too. Each set was uniquely designed to be a character unto its own, immersing the audience into the high-stakes world of the series. One of the games in Season 2, for example, reportedly involves a sprawling outdoor arena with complex environmental hazards that required many weeks of construction and very careful planning.

2. Advanced CGI and Special Effects

While practical effects took precedence for much of Season 1, advanced CGI pushed the overall look of Season 2 to the limit, from realistic explosions to digitals that changed entire environments to maximum effect. The special effects gave a very cinematic feel to the series.

3. Talent Compensation

It made its cast international stars after the massive success of Season 1. Lee Jung-jae, the lead of this series, gained worldwide acclaim. Netflix had to treble the compensation in order to secure its returning actors and new roles for the show. Reportedly, lead actor Lee Jung-jae received a big raise to reflect his new status and how successful this show has been.

4. Global Marketing Campaign

A portion went into marketing and promotion. Netflix also launched an aggressive global campaign for Season 2, featuring interactive events, social media campaigns, and brand collaborations. They really want to get the buzz going again with this series and reach even bigger audiences.

The Impact on Netflix

This huge investment in Squid Game Season 2 is part of Netflix’s bigger plan to have must-watch content for its subscribers.

What does that investment mean for Netflix?

1. Upgrading International Programming:

Squid Game became living proof of what international programming is capable of. Increasing the budget fourfold for Season 2 sent a clear signal that Netflix saw non-English content as integral to its global strategy. All in all, this move underscored a vote of confidence in Korean entertainment as a driver of growth for the company.

2. Subscriber Retention:

More importantly, though, with increased competition from Disney+, Amazon Prime Video, and HBO Max, flagship content has got to be enough to keep subscribers on board-something like Season 2 of Squid Game would be in high demand from audiences who could easily turn to rival services.

3. Merchandise and Spin-Offs

Sale Success for Squid Game stretched well beyond streaming. Netflix managed to monetize the show’s success through merchandise, themed experiences, and possible spin-offs. The increased budget of Season 2 will make sure that the needed quality is there to keep it culturally relevant and further the brand.

Return on Investment

Will Netflix’s investment pay off in Season 2? Early signs are promising. Already, the buzz of the series has boosted Netflix’s visibility in certain key markets, especially in Asia. Specific revenue figures remain unannounced for Season 2, but one of the key metrics for success is the season’s ability to attract subscribers and keep old subscribers.

Looking Ahead

This investment by Netflix in Squid Game Season 2 raises the ante for Season 3 to a whole new level, which is already highly anticipated by fans. Indeed, with its reported $84 million budget, Season 2 has delivered not only a slicker, expanded viewing experience but also furthered Squid Game as one of Netflix’s most valuable properties.

A successful Season 2 of Squid Game means so much more than good fortune for Netflix. This is a sign that compelling storytelling, innovative production design, and international influence are in full bloom. If the series continues down this path, its future as a multi-year cultural phenomenon is virtually guaranteed.