How Profitable is Stranger Things?

How Profitable is Stranger Things?

Stranger Things, the popular Netflix series, has captured the hearts of millions of viewers worldwide. However, the question remains, how profitable is it? In this article, we'll take a closer look at the financial aspects of Stranger Things.

Production Cost

The production cost of Stranger Things is estimated to be around $6 million per episode. This includes the cost of filming, visual effects, and post-production. With a total of 25 episodes across three seasons, the total production cost would be around $150 million.

Revenue

Netflix does not release viewing figures for its shows, but it's safe to say that Stranger Things has been a massive success. In 2019, it was reported that the show had been watched by over 64 million households in its first four weeks of release.

The revenue generated by Stranger Things comes from Netflix subscriptions. With a monthly subscription fee of $8.99, and assuming that all 64 million households watched the show, the revenue generated would be around $576 million.

Profit

Based on the figures above, we can estimate the profit generated by Stranger Things. Assuming that all revenue is profit (which is not the case), the profit generated would be around $426 million. However, we need to take into account the production cost, which was around $150 million. This leaves a profit of around $276 million.

Investment Opportunities

While investing in a TV show may not be feasible for most people, there are still opportunities to invest in companies that produce content for streaming services like Netflix. One example is the publicly-traded company, Lions Gate Entertainment Corp (LGF.A). The company has a partnership with Hulu and produces shows like Orange is the New Black and You.

Another investment opportunity is to invest in companies that provide technology and services to streaming services like Netflix. Companies like Amazon Web Services (AWS) and Akamai Technologies (AKAM) provide cloud computing and content delivery services to Netflix.

Conclusion

Stranger Things has been a massive success for Netflix, generating around $276 million in profit. While investing in a TV show may not be feasible for most people, there are still opportunities to invest in companies that produce content for streaming services like Netflix or provide technology and services to these companies. As for Stranger Things, fans can look forward to a fourth season, which is currently in production.