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Netflix Leans Into South Korea Following 'Squid Game' Success

Netflix plans to bring more than 25 new South Korean shows and movies to its streaming service in 2022.
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Netflix  (NFLX) - Get Netflix, Inc. Report is leaning into the success of Squid Game by unveiling a slate of new shows from South Korea set to debut in 2022.

Netflix is developing a high school zombie show called "All of Us Are Dead; Money Heist: Korea - Joint Economic Area, an adaption of a popular Spanish series; and Seoul Vibe, an action film placed against the backdrop of the 1968 Seoul Olympic Games.

That slate is part of 25 new shows and movies from South Korea the company plans to bring to its global audience. 

Squid Game, a surprise hit from South Korea that became the streaming service's most watched show in history, was just the tip of the iceberg for the company, which says that overall global viewing hours of its South Korean shows grew six-fold in 2021 when compared to 2019. 

The show was the most viewed on Netflix in 94 countries at its peak and 95% of viewership came from outside of South Korea, the company said this week. 

Between 2016 and 2021, Netflix launched more than 130 South Korean titles placing the company in prime position as "Korean shows dominated global popular culture in 2021," the company said. 

Netflix's Q4 Under the Microscope 

Netflix is scheduled to report its fourth quarter results after the closing bell Thursday with analysts expecting the company to report revenue of $7.71 billion, a 16% year over year increase. 

However, the company's profits are expected to fall to 83 cents per share from $1.19 per share a year ago, according to FactSet. 

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However, subscriber growth is the key metric that drives Netflix's post-earnings stock movements. 

Netflix won't have the benefit of Squid Game, which the company says racked up a total of 142 million household views in the third quarter, to boost subscriptions. 

But analysts are expecting 8.5 million additional subs in December on the back of popular fourth quarter hits like "Dont Look Up."

Netflix Pricing Against Competition

Last week, Netflix announced that it is raising prices across all plans in the U.S. to $15.50 per month from $14. The 4K plan price is rising to $20 from $18 per month. 

The price increase in 2022 follows increases in late 2020 and 2019. Before that, Netflix raised prices in 2017 and 2015. 

The standard package's $15.50 price point in 2022 is nearly double the package's cost of $7.99 in 2011. 

Meanwhile rival HBO Max took Netflix's price raise announcement as an opportunity to offer potential subs 20% off its monthly plans.

WarnerMedia-owned HBO Max has, at present, two types of monthly subscriptions: an ad-supported version for $9.99 a month and an ad-free version for $14.99 a month. For those who sign up before the end of January, both plans will cost $7.99 or $11.99 a month for the length of a year. Warner, in turn, is owned by the larger AT&T T.