Investing.com — Shares of South Korean companies linked to Netflix Inc. fell on Friday. (NASDAQ:) series “Squid Game” experienced a significant decline after the release of the new season of the series. Artist United Inc., the film distributor in which “Squid Game” actor Lee Jung-jae is the largest shareholder, saw its shares drop as much as 30% for the day. Wysiwyg Studios Co., also an investor in Artist United, saw a drop of as much as 25%, and Dexter Studios Co., which works with Netflix, saw its share price drop by 24%.
The original release of “The Squid Game” in 2021 was a huge success on a global scale, leading to a surge in the share prices of local entertainment companies. The series not only became the most watched title on Netflix on every continent, but also earned the distinction of being the first non-English language show to be nominated for Best Drama at the Emmy Awards.
With the bar set high, anticipation for the second season of the dystopian drama was high. The new season, which premiered on December 26, received an 85% approval rating from critics and a 65% from viewers on Rotten Tomatoes, despite some less than favorable reviews.
The market’s reaction to the premiere of the latest season is in sharp contrast to the initial enthusiasm that fueled South Korea’s entertainment stocks two years ago. The success of the first season fueled investor optimism about the potential benefits of Netflix’s pursuit of additional blockbusters. However, the recent performance of related stocks indicates a changed sentiment following the reception of the latest season.
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