Netflix series Arcane has received critical success, but it failed to be a profitable venture for League of Legends developer, Riot Games.
Sources close to the production of Arcane have revealed to Bloomberg that Arcane significantly exceeded its budget, with Riot Games pouring unprecedented resources and time into the development of the Netflix series. Beyond production expenses, the company invested tens of millions more in marketing and an awards campaign. As per League of Legends Executive Producer Paul Bellezza, Riot Games spent approximately $250 million on the show’s two seasons.
Meanwhile, Netflix paid $3 million per episode to stream the series, and Tencent Holdings Ltd., Riot Games’ parent company, contributed an additional $3 million per episode for distribution rights in China, as reported by Variety. These combined payments covered less than half of the show’s total costs.
Multiple sources close to Arcane’s production revealed that Riot Games initially lacked a clear plan to recover the massive investment. A spokesperson for the company acknowledged that the show itself wasn’t profitable but emphasized its broader benefits to Riot Games’ business, including one of the company’s highest-ever revenue periods shortly after the show’s release. “Arcane was a success when we look across all our internal measures,” the spokesperson said, noting that the second season is expected to at least break even financially.
At the beginning of the year, Riot Games laid off 11% of its workforce, stating its intention to refocus on games as the core of its business. In recent months, the company has scaled back its aspirations in Hollywood, discontinuing Arcane and halting work on other adaptations. As per Simon Pulman, who co-chairs the media and entertainment group at the law firm Pryor Cashman LLP, if Riot Games had seen a massive increase in revenue and profit, it would have done other adaptations and more Arcane seasons.
