In the dynamic industry of K-drama production, companies often secure a portion of production costs even before a drama airs, thanks to broadcast fees and advertising revenue. For a high-budget production like “Queen of Tears,” broadcast fees are estimated to cover around 50% of production costs, ensuring a minimum revenue target of approximately 30 billion won (approximately 22 million USD).
“Queen of Tears” has capitalized on its potential, securing substantial revenue through broadcast fees and pre-sale fees from Netflix. The K-drama’s producer has likely surpassed the break-even point even before its broadcast, given the financial backing from Netflix and other sources.
Apart from broadcast and pre-sale fees, “Queen of Tears” stands to generate additional revenue through domestic product placement (PPL), original soundtracks (OSTs), and video-on-demand (VOD) sales. As viewership rates rise, the producer stands to benefit further under contract terms.
Looking ahead, there are expectations for revenue from the sale of the “Queen of Tears” intellectual property (IP), akin to successful ventures like “Arthdal Chronicles” spawning a game and “Crash Landing on You” inspiring a musical production.
The success of “Queen of Tears” underscores the strategic financial planning and revenue diversification required in the competitive K-drama industry. By leveraging multiple revenue streams and maximizing the value of its IP, the production sets a precedent for financial success in the evolving world of Korean content creation.
