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Riot Games Financially Misses the Mark with Arcane, But It's Okay
Arcane's second season on Netflix had a spectacular debut. It was everything that fans hoped for, but the financial outcomes tell a different story. Riot reportedly spent $250 million on production and marketing for two seasons, while revenue from streaming rights and in-game activations failed to cover the costs.
While many speculated whether this could negatively impact Riot Games' future when it comes to producing more shows like Arcana, co-founder Marc Merrill joined the debate. "We sell skins to make things like Arcane. Riot is a mission-driven company focused on delivering exceptional value over the long term." Merrill said, indicating that profiting off Arcane wasn't a must-have for the company.
From an outsider's view, Arcane could have had a better monetization strategy because the series missed out on the hype when it comes to marketing in-game integrations around the time of its initial release. Arcane-themed items still arrived, but they could have averaged better sales numbers if the timing had been better.
Riot definitely has a positive mindset regarding the future of the Arcane-like series, but the numbers could still cause the company to scale back on its entertainment projects. Overall, it's challenging to call Arcane a failure since the show itself became one of the most highly-regarded animations that also helped League of Legends gain new players while convincing former users to return to the game.
As a long-time League player myself, the urge to play the game intensified as I continued watching the show. Though these effects could be different for everyone, I found myself thinking of champion dialogues that lighten up the laning experience. My return wasn't a serious one, but Arcane was enough to convince my squad to go online for a couple of ARAM matches every few days. This is still a success on an individual level, and if Riot can find the right formula to profit from its future shows, I believe my case could start applying to more players around the world.
Considering the viewership, Netflix would likely be onboard with future Riot projects, or the developer could even try to search for a better deal with other streaming services. Amazon Prime Video has been levelling up its competition recently, with the likes of Mr Beast releasing an exclusive show on the platform. Such a deal could drastically increase Riot's profit margins, paving the way for more lucrative projects.