Netflix's animated series Arcane was a smash hit for the streaming service. The adult animated series, inspired by the hit MOBA League of Legends, was a critical darling and an award-winner. However, the beloved show, which became the first series to win a Primetime Emmy Award for Outstanding Animated Program in 2022, wasn't the financial hit that video game publisher Riot Games was hoping it would be.
Produced by French animation studio Fortiche under the supervision of Riot Games, the series reportedly cost about $250 million to produce its two seasons. A new report from Bloomberg broke down the financials of the series, explaining that Netflix paid Riot about $3 million per episode, while Tencent Holdings Ltd., the Chinese company that owns Riot, paid an additional $3 million for the rights to show it in China. All together, the payments amounted to less than half of the show's total cost.
The hope for Riot was that the show's popularity would feed back into its games, primarily League of Legends. The competitive MOBA, which is now 15 years old, remains popular; however, with its player base shrinking, Riot was hoping the show would bring new blood into the game. League of Legends did see a slight boost in new player signups, "not many stuck around," Bloomberg reports, citing "two people with knowledge of signups."
Furthermore, developers of Riot's in-game cosmetics were not given enough time prior to Arcane's first season to design themed items or characters that could be sold across its game.
“We were really surprised with the success of season one,” admitted League of Legends executive producer Paul Bellezza, adding that's “why we probably missed an opportunity to do some in-game activations around it.”
After facing pressure from Tencent after the first season, Riot "planned to redouble efforts to funnel Arcane fans into League of Legends." With Season 2, there were planned activations within Riot's games, including cosmetics and in-game events. In League of Legends, this included multiple in-game skins based on Arcane characters. For Teamfight Tactics, an auto-chess spin-off of League of Legends, the entire current season is based on the show.
Ultimately though, it doesn't appear that Arcane was the financial driver that Riot, or its parent company Tencent, were hoping it would be. That doesn't mean Riot doesn't consider it a success though.
"Arcane was a success when we look across all our internal measures,” a Riot Games spokesperson told Bloomberg, adding that the second season is “on track to be at least break-even for us financially.”
“For us, what’s most important is fostering long-term player engagement and retention,” added an unnamed Riot spokesperson. “Riot’s focus has always been on creating games and experiences that players want to enjoy for years, and Arcane is part of that larger vision.”
Arcane may have been a hit with viewers and a massive success for Netflix — it topped the streamer's chart of most-watched titles in dozens of countries — but industry analysts consider it a commercial failure for Riot Games. Season 2 was already planned as the show's final chapter, but the financial miss for Riot Games may make it more difficult for the video game publisher to greenlight future television series adaptations.