How Netflix Made $900M from Squid Game While Its Creator Got Pennies

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Squid Game Director Hwang Dong-hyuk, Netflix earned $900M from Squid Game while its creator Hwang Dong-hyuk received a fraction of that.
Squid Game Director Hwang Dong-hyuk

In 2021, Netflix’s Squid Game smashed records, redefining global streaming success. With over 1.65 billion hours viewed, it became the most-watched Netflix series ever, ranking #1 in 94 countries. The show generated an estimated $900 million in value for Netflix—but what about its creator, Hwang Dong-hyuk?

Spoiler alert: He didn’t become a billionaire. In fact, Hwang admitted he made significantly less than expected, a sobering reality of how modern streaming platforms operate.

The Backstory: From Struggling Filmmaker to Global Phenomenon

Rewind your mind a bit to 2009. Hwang Dong-hyuk was a struggling filmmaker grappling with South Korea’s financial crisis. Poor as a church mouse and selling his laptop to pay rent, Hwang Dong-hyuk conceptualized the series. Fast forward two years when they started to work on the series, and the stress took a toll: Hwang had lost eight teeth.

That said, it was soon discovered that, despite putting all his energy into the story, it would still be money that would have defined the successful extent of the global phenomenon; he was to gain nothing from that. The reason his endeavors yielded little fruit is revealed to be the way the streaming platforms pay creators.

How Streaming Platforms Like Netflix Pay Creators

Streaming platforms have revolutionized content consumption but not creator compensation. Here’s how the economics work:

  • Flat Fee Payments: Creators receive an upfront payment for their work.
  • No Backend Royalties: Unlike traditional TV deals, there’s no share of profits or residuals.
  • Platform Ownership: Netflix and others own all rights to the content forever.

This model ensures platforms keep all the upside, while creators—regardless of the project’s success—are left with their initial payment.

The Numbers Don’t Add Up

Let’s break it down further: maybe Hwang was paid a reasonable flat fee; at all events, that was the case for perceived moderate success. But when Squid Game made Netflix $900 million, the disparity became grossly apparent. This is how you would feel, if you built your house and it appreciated a thousand times, but they paid you only the construction value: under an old structure of running things with streaming.

Netflix’s Brilliant (But Brutal) Strategy

Netflix’s content model is as ruthless as it is profitable:

  • Invest in Bulk: Fund dozens of shows and hope for a mega-hit.
  • Keep All Rights: Ensure creators don’t claim any future profits.
  • Subsidize Failures: Use the revenue from hits to cover flops.

While this strategy helped Netflix dominate the streaming space, it created a new class of inequality—where creators of massive hits like Squid Game don’t share in their own success.

Why This Model Hurts Creativity

The flat-fee payment model has ripple effects across the industry:

  1. Reduced Risk-Taking: Creators may avoid ambitious projects if there’s no financial upside.
  2. Rushed Projects: Without profit-sharing, creators might prioritize quantity over quality.
  3. Industry Inequality: Small creators have little leverage against giant platforms.

Hope for Change? Lessons from Other Industries

While video streaming remains resistant to change, other industries are experimenting with fairer models:

  • Music Streaming: Platforms like Deezer and TIDAL are exploring user-centric payment systems, where artists earn based on actual consumption.
  • Independent Distribution: Creators are turning to platforms like Patreon or YouTube to retain more control.

Could these innovations push video streaming to adopt similar practices?

The Power of Ownership in the Digital Age

The streaming revolution taught creators an invaluable lesson: The real power isn’t in creating content—it’s in owning your audience and distribution.

Unlike Hwang, who had to rely on Netflix, modern creators can bypass gatekeepers:

  • Direct Engagement: Build personal brands to connect with audiences.
  • Leverage Technology: Use platforms like Substack or YouTube for independent monetization.
  • Create Independence: Retain ownership of your work to ensure fair compensation.

A Wake-Up Call for the Industry

Hwang Dong-hyuk’s story is a cautionary tale for creators navigating the streaming era. While platforms like Netflix offer global exposure, their economic model often leaves creators shortchanged.

The future of entertainment depends on rethinking how creators are compensated. For now, the message is clear: Create, but don’t forget to own.