Riot Games’ ambitious $250 million TV show Arcane, based on its popular game League of Legends, was a hit with viewers but a financial miss for the company.
Riot decided to take full control of the project, choosing to finance and develop the show in-house rather than licensing it to Hollywood studios.
The goal was to create a gift for fans and attract more players to League of Legends, which, despite its 15-year success, has seen a slow decline in its player base.
However, the show went significantly over budget. Riot spent a massive amount on production, marketing, and awards campaigns, totaling around $250 million for two seasons.
Netflix paid Riot about $3 million per episode to air the show, while Tencent, which owns Riot, contributed another $3 million for the rights to show it in China.
Despite the show’s popularity, these payments covered less than half of the total costs.
While Arcane may have been a success in terms of viewership and critical acclaim, its financial outcome was far from what Riot had hoped for.
The company’s investment in the show, intended to transform Riot into a media powerhouse like Walt Disney Co., has not yet paid off in the way they envisioned.
