The financial arrangement between the creator of Squid Game, Hwang Dong-hyuk, and Netflix has raised concerns regarding the lack of royalties for the show’s success. Despite the immense popularity and financial success of the series, Hwang Dong-hyuk stated in an interview that he did not receive any additional compensation beyond what was specified in the original contract. This has led to criticism from fans and the media, questioning the fairness of the situation.

While the absence of royalties for the creator might seem unfair, it’s important to note that the details of the contract and financial agreements between Hwang Dong-hyuk and Netflix are not publicly known. It is common in the entertainment industry for creators to sign away certain rights or agree to specific compensation terms, especially when dealing with large production companies or streaming platforms. These agreements can vary widely and depend on numerous factors, including negotiation power, industry norms, and individual circumstances.

Regarding the impact on Season 2 of Squid Game, it is uncertain whether the controversy surrounding the lack of royalties will directly affect the production or release of the next season. The decision to proceed with a new season will likely depend on various factors, such as viewer demand, creative considerations, and contractual agreements between Hwang Dong-hyuk and Netflix. It’s possible that the criticism and public attention might influence negotiations for future seasons or lead to a reevaluation of compensation terms.

It’s worth mentioning that the issue of creators not receiving their fair share of profits is a broader concern in the entertainment industry. As the popularity of Korean content grows globally, there is a growing conversation about the need for fair compensation and recognition for the creative individuals behind these successful projects. This discussion may contribute to changes in industry practices and encourage platforms and production companies to revisit their compensation structures.

Netflix recently faced significant backlash regarding the treatment and working conditions of K-Content creators. In response, the streaming giant released a statement asserting that they pay fair and highly competitive rates to their Korean production partners, ensuring compliance with Korean law. However, it was uncovered that Korean law previously allowed workdays to extend beyond 24 hours, which led to excessively long shoots, some exceeding 130 hours per week. The Mary Sue reported that unpaid labor was prevalent, as only officially filmed days were counted, leaving pre-production work unrecognized.

This revelation has left fans dissatisfied and concerned for the makers of the show. However, it is important to note that the contract between the creators and the studio was signed before anyone anticipated the show’s immense success, not just in Korea but worldwide. While it may have been ideal for the makers and the studio to revisit the contract considering the show’s newfound fame, it is possible that they have already done so for the upcoming season.

The show’s immense popularity has generated significant hype, particularly with the announcement of a new cast. Fans are eagerly awaiting the creative choices made by the makers for both new and returning characters. Their greatest hope is that, for the second season, everyone involved, including actors, directors, writers, and the studio, have negotiated a new contract that takes into account the show’s heightened expectations and global fame, ensuring fair and equal compensation for all parties involved

When Squid Game took the world by storm in 2021, it was more than just a viral sensation; it became a cultural phenomenon that captured the attention of millions across the globe. With its gripping storyline, relatable themes, and unexpected twists, Squid Game raked in an astounding $900 million in revenue for Netflix. However, the shocking part of this success story is that the creator, Hwang Dong-hyuk, hasn’t received any royalties from the show’s massive earnings. This begs the question: Why isn’t the mastermind behind this global hit reaping the financial rewards?

The Success of Squid Game

Squid Game quickly became Netflix’s most-watched show, drawing in viewers with its intense narrative and stark commentary on socio-economic disparity. The show’s success translated into substantial financial gains for Netflix, propelling the streaming giant’s revenue to new heights. With millions of viewers worldwide, the series’ impact was felt not only in entertainment but also in popular culture, inspiring merchandise, fan theories, and even real-life game adaptations.

Hwang Dong-hyuk’s Original Deal

Despite the show’s success, Hwang Dong-hyuk’s financial gain from Squid Game has been surprisingly limited. The reason lies in the original deal he struck with Netflix. When Hwang signed the contract, he was relatively unknown on the global stage, and the series was a risky venture with no guarantee of success. Consequently, his agreement with Netflix did not include any royalties or profit-sharing clauses. Instead, he was paid a flat fee for his work, which seemed fair at the time given the uncertainties surrounding the project.

The Impact of Streaming Agreements

The Squid Game scenario highlights a broader issue within the entertainment industry, especially concerning streaming platforms like Netflix. Traditionally, creators and writers would receive royalties based on the success of their work, with payment models that included a share of the profits. However, with the rise of streaming, many deals have shifted towards one-time payments with no ongoing royalties. This change in the industry’s payment structure can leave creators at a disadvantage, especially when their work becomes unexpectedly successful.

Why Netflix Doesn’t Pay Royalties

Netflix’s business model is subscription-based, meaning its revenue comes primarily from subscribers rather than direct sales or ad revenue. This model allows Netflix to finance content upfront, often offering creators substantial budgets to bring their visions to life. However, this also means that once a deal is struck, Netflix retains all the financial benefits of a successful show, while the creator receives no additional income beyond the initial payment. This approach is a double-edged sword—while it offers security and creative freedom for creators during production, it can lead to situations like Hwang’s, where the creator misses out on the financial success of their work.

Industry Reactions and Future Implications

The revelation of Hwang Dong-hyuk’s lack of royalties has sparked debate within the industry about the fairness of such deals. Many argue that creators should be entitled to a share of the profits, especially when a show performs exceptionally well. As streaming continues to dominate the entertainment landscape, there may be increasing pressure on platforms like Netflix to revisit their compensation models and offer more equitable terms for creators.