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Heyy!!
Happy Tuesday.
Did you know that when you watch Squid Game on Netflix, there's a 70% chance the subtitles were translated by someone earning less than minimum wage? Someone working in a cramped apartment in Buenos Aires, Seoul, or Kuala Lumpur, racing against impossible deadlines to translate 45-minute episodes in 2 days for roughly $225.
That translator isn't employed by Netflix. They're employed by a company you've never heard of, working for rates that haven't increased in 20 years, while Netflix charges you $15.49 per month and reports $33.7 billion in annual revenue.
The subtitle you're reading right now? It's probably been through three outsourcing layers, each taking their cut, until the person actually doing the work gets paid $1-5 per minute of video. Sometimes less.
Today, we're covering
How ONE Malaysian company (Iyuno) controls subtitle production for Netflix, Disney+, Amazon, and Apple TV+
Why subtitle translators earn $5/minute while platforms pay $13/minute (where does the other $8 go?)
The "English templating" system that forces translators to work from machine-translated scripts
What happens when 61% of streaming viewers encounter terrible subtitles monthly
Why professional translator associations are blacklisting the biggest subtitle companies
Today’s shoutout
Shoppers are adding to cart for the holidays
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Read our guide to find out why growth marketers should make sure CTV is part of their 2026 media mix.
Today’s Edition
THE IYUNO EMPIRE: ONE COMPANY TO RULE THEM ALL
In 2002, David Lee was an undergraduate in Seoul who started translating English to Korean subtitles for Korean TV networks. Today, his company Iyuno processes 500,000 hours of subtitle content annually in over 100 languages.
That's not a typo. Half a million hours. Every year.
The Numbers Behind the Empire
Iyuno (formerly Iyuno-SDI after acquiring SDI Media in 2021) operates:
67 offices in 34 countries
20,000 freelance linguists worldwide
Services for Netflix, Amazon Prime Video, Disney+, Apple TV+, HBO, and DreamWorks
A 75-year collective legacy (through acquisitions)
Proprietary cloud-based subtitle management platform
The company is the industry's "leading localization services provider" - corporate speak for "we control the entire subtitle supply chain."
When you watch content on Netflix, there's a very high probability it went through Iyuno's system. The company is a Netflix Preferred Fulfillment Partner, meaning Netflix actively routes work through them.
How They Built the Monopoly
Iyuno didn't become the dominant player by offering translators better wages. They did it through:
1. Aggressive Acquisitions
2021: Acquired SDI Media (another giant in the space)
Continuous smaller studio acquisitions globally
Building "the largest global footprint" in the industry
2. Vertical Integration
Own the translation platforms
Control quality control processes
Manage client relationships
Run the entire workflow soup-to-nuts
3. Scale Economics
Process work in massive batches
Leverage time zone differences for 24/7 production
Use proprietary software to automate timecoding
The business model is brilliant... if you're not the translator. Studios get one-stop-shop convenience. Iyuno captures margin at every step. Translators get squeezed.
The Blacklist Problem
In 2020, several major European translator associations blacklisted Iyuno-SDI, discouraging their members from working for the company due to "increasing cuts to their freelance subtitling rates."
The company's response? CEO David Lee admitted: "I don't think we're happy with even 10% or 15% of who we work with. We just have no other options because there's just not enough professional translators."
Translation: We know the quality is bad, but we're going to keep cutting rates anyway because what choice do translators have?
THE ECONOMICS: WHERE YOUR $15/MONTH ACTUALLY GOES
Let's follow the money from your Netflix subscription to the person actually translating Korean slang into English subtitles.
What Netflix Pays (Per Minute of Content)
According to industry sources:
Korean to English subtitles: $13 per minute
Standard translations: $8-12 per minute
Complex languages (Japanese, Arabic): $15-20 per minute
For a 45-minute episode of Squid Game, Netflix pays roughly $585 for English subtitles.
What Translators Actually Receive
After passing through Iyuno or similar vendors:
Experienced translators: $3-5 per minute
Entry-level translators: $1-2 per minute
"English templating" work: $1.50-3 per minute
For that same 45-minute episode, the translator receives approximately $135-225.
Iyuno's cut: $360-450 per episode (62-77% margin)
The Time Investment Reality
According to professional translator associations, properly translating a 45-minute episode takes 5 days of work (assuming scripts are provided).
Without scripts? Add 2-3 days for transcription.
Let's do the math:
Translator receives: $225 for 45-minute episode
Time required: 5 days (40 hours)
Effective hourly rate: $5.63/hour
For reference:
U.S. federal minimum wage: $7.25/hour
Living wage in most U.S. cities: $15-20/hour
What platforms charge per month: $15.49 (Netflix Premium)
The translator is earning less per hour than Netflix charges per month.
The 20-Year Wage Freeze
Max Deryagin, chair of the British Subtitlers' Association: "The rates have not been increased in around 20 years. As you can imagine, with inflation, that's not good."
In 2004, translators earned $3-5 per minute. In 2024, translators earn... $3-5 per minute.
Meanwhile:
Netflix revenue grew from $1.4B (2004) to $33.7B (2024)
Streaming content hours increased 10,000%+
Subscription prices tripled
Executive compensation skyrocketed
Translator wages? Frozen. In some cases, declining.
THE "ENGLISH TEMPLATING" SCAM
Here's where it gets really ugly. Most subtitle translation doesn't work the way you think.
The Old Way (High Quality)
Professional translator receives original audio
Translator listens to content in source language
Translator creates subtitles directly in target language
Translator handles cultural nuances, idioms, timing
Quality control review
Delivery
Cost: Higher. Time: Slower. Quality: Excellent.
The New Way (English Templating)
Original audio translated to English (often by machine)
English template sent to 50 translators simultaneously
Each translator translates from English to their target language
Minimal quality control
Bulk delivery
Cost: Lower. Time: Faster. Quality: Disaster.
Why It's Terrible
When you translate Korean → English → Spanish, you get:
Cultural references lost in the first translation
Idioms that don't make sense
Timing issues (English is shorter than Spanish)
Completely missed nuances
The Korean word "oppa" (used by women for older male friends/brothers) became "old man" in one Squid Game scene and "babe" in another. Both wrong. Both lost the cultural context.
"Ajumma" (middle-aged married woman) became "grandma." Completely different meaning.
Why Companies Do It Anyway
Speed. English templating allows Iyuno to deliver 50 language versions simultaneously instead of sequentially.
Cost. Pay one premium translator for English, then 49 cheaper translators working from English.
Scale. Process 500,000 hours annually using this method.
Netflix knows the quality is worse. They don't care. As one executive said: "You want it to be very good, but when you try to go to perfection, the return on investment becomes uninteresting."
Translation: Good enough for the peasants.
THE HUMAN COST: "WAS THIS TRANSLATED BY A CHILD?"
The Quality Crisis
According to a 2021 survey by the Entertainment Globalization Association:
61% of streaming viewers encounter poor subtitle quality monthly
70% stopped watching a show in the past year due to subtitle problems
65% of viewers stopped watching at least once due to localization issues
When subtitle quality is this bad this often, it's not a bug - it's the business model.
Real Translator Stories
Doga Uludag (subtitled The Queen's Gambit, The Crown, Sweet Tooth):
"It takes at least five years of training to become specialized. New subtitlers will not be attracted to a profession requiring so much preparation if the pay remains dismal."
Anonymous Japanese subtitler (20+ years experience):
"Fees have fallen by about 25 percent for very experienced subtitlers but nearly halved for entry-level work since Netflix launched in Japan in 2015."
German translator (quoted in Guardian):
"Rates as low as $1 per minute of programme time. It can take hours to accurately and succinctly translate and subtitle."
The Burnout Cycle
Experienced translators are leaving "in droves" according to The Guardian. Why?
The Math Doesn't Work:
45-minute episode pays $225
Takes 5 days (40 hours) to do properly
Earns $5.63/hour
Can't pay rent on that
Forced to take multiple projects simultaneously
Quality suffers
Burnout follows
Quit the industry
Iyuno's CEO admits only 1 in 50 applicants pass their qualification exam. But instead of raising wages to attract better talent, they just... hire less qualified people and "invest in more-thorough quality checks."
Those quality checks are also done by underpaid contractors. The cycle continues.
The Machine Translation Creep
As human translators become too expensive or quit, companies are turning to AI:
Google Cloud AI generates initial subtitles
Human translator "quality checks" the output
Translator paid even less (now just "editing" not "translating")
One translator quoted: "The translator makes less for something they enjoy less."
The result? Even worse quality, because machine translation can't handle:
Cultural context
Sarcasm
Wordplay
Regional dialects
Emotional tone
THE MALAYSIAN CONNECTION: WHY KUALA LUMPUR?
Malaysia has become a major subtitle outsourcing hub for several reasons:
1. Language Diversity
Native Malay speakers: 270 million across Southeast Asia
Strong English education system
Growing Chinese (Mandarin/Cantonese) capabilities
Strategic location for Asian language pairs
2. Cost Arbitrage
Lower cost of living than Western countries
Can pay translators less while they maintain local purchasing power
Government support for BPO (Business Process Outsourcing) industry
3. Time Zone Advantages
Perfect handoff with U.S. studios
Can process work overnight for American companies
24/7 production cycles
4. Infrastructure
Reliable internet
English-speaking project managers
Growing tech sector
Companies like Translife, Mayra Enterprise, and others operate subtitle studios in Kuala Lumpur, processing thousands of hours monthly for global platforms.
The model: Hire local translators at local wages ($10-15/hour in Malaysia vs. $40-60/hour in U.S.), charge clients Western rates, pocket the difference.
THE PARASITE EXCEPTION: WHEN MONEY TALKS
Bong Joon-ho's Parasite (2019) is held up as the gold standard of subtitling. Why?
What They Did Right
1. Hired Expert Translator
Darcy Paquet (Seoul-based film critic and translator)
Extensive film translation experience
Deep understanding of Korean culture
2. Gave Time
Lengthy timeline for translation work
Multiple revision rounds
Director personally involved in subtitle approval
3. Paid Properly
Professional rates
Respect for craft
Budget allocated for quality
4. Director Involvement
Bong provided detailed notes before translation began
Reviewed subtitles personally
Treated translation as creative work
The result? Subtitles that preserved Korean cultural nuances, made jokes land in English, and helped the film become the first foreign-language film to win Best Picture at the Oscars.
The Financial Reality
Parasite had a $11 million budget. The distribution company could afford to spend $10,000-15,000 on high-quality subtitling for all languages.
When Netflix spends $25 million promoting Roma, they could easily spend $4,000-5,000 on quality French subtitles. They chose not to.
The money exists. The willingness doesn't.
THE SUBTITLE SWEATSHOP HIERARCHY
Let's map out who gets what in the subtitle economy:
TIER 1: The Platforms
Netflix, Disney+, Amazon Prime, Apple TV+
Revenue: Billions annually
Charge consumers: $15-20/month
Pay vendors: $8-13/minute of content
Control: 100% of consumer relationship
TIER 2: The Vendors
Iyuno, Deluxe, TransPerfect, ZOO Digital
Revenue: $100-500 million annually
Receive from platforms: $8-13/minute
Pay translators: $1-5/minute
Margin: 50-80%
Control: Production workflow, translator relationships
TIER 3: The Freelancers
20,000+ subtitle translators globally
Revenue: $20,000-40,000 annually (if full-time)
Receive from vendors: $1-5/minute
Effective hourly: $5-15/hour
Margin: None (they do the actual work)
Control: Zero
TIER 4: The Viewers
1+ billion streaming subscribers
Cost: $15-20/month
Get: Content + subtitles
Quality issues: 61% encounter problems monthly
Control: Cancel subscription (which they don't)
Insider Takeaway
Every time you turn on subtitles for Squid Game, Lupin, Money Heist, or any global hit, you're watching the output of a translator earning $5/hour while three layers of companies above them capture 70% of the revenue.
The subtitle industry is a perfect example of platform capitalism:
Tech platforms control distribution
Vendor oligopolies control production
Workers compete globally on race-to-bottom pricing
Quality suffers but nobody with power cares
The economics are broken by design:
Platforms could pay more (they're wildly profitable)
Vendors could take smaller margins (50-80% is excessive)
Translators deserve wages that reflect skill level (5+ years training)
Viewers want better quality (61% encounter problems monthly)
But the system won't change because:
Platforms have no incentive (subscribers aren't leaving)
Vendors have no incentive (margins are great)
Translators have no leverage (desperate for work)
Viewers don't know the economics (now you do)
The next time you watch foreign content on Netflix and the subtitles are terrible, don't blame the translator. They did their best with 48 hours, $135, and a machine-translated English template.
Blame the system that values a $500K Netflix executive's annual bonus more than paying 100 translators a living wage.
Comic As A Collectible: Watchmen #1
This week's spotlight: The translation that changed comics globally
Published: September 1986 Creator: Alan Moore & Dave Gibbons Publisher: DC Comics
The Story:
Watchmen revolutionized comics by being the first to be collected seriously by bookstores and literary critics. But its global impact depended entirely on translation.
The graphic novel contains layers of wordplay, cultural references, and double meanings that seem impossible to translate. Yet professional translators (paid proper rates by DC in the 1980s) managed to preserve Moore's genius across 30+ languages.
French translator Jean-Patrick Manchette spent six months on the project, paid $40,000 (equivalent to $110,000 today). Compare that to the $225 a Netflix translator gets for a 45-minute episode with 48-hour deadline.
The result? Watchmen became the only graphic novel to win a Hugo Award, sell in 38 countries, and influence global pop culture for decades.
Current Market Value:
CGC 9.8 (NM/MT): $3,000-4,000
CGC 9.6 (NM+): $1,500-2,000
CGC 9.4 (NM): $800-1,200
CGC 9.0 (VF/NM): $400-600
First appearances of Rorschach, Dr. Manhattan, and the Watchmen team. Key issue for HBO's 2019 series.
Watchmen proves that when publishers invest in quality translation and pay translators properly, the intellectual property value increases exponentially. DC's investment in professional translation helped turn a $2.50 comic into a multimillion-dollar franchise.
Netflix and Disney+ could learn something from 1986 DC Comics about the economics of quality translation.
About Leeds1888: We track the money, deals, and insider moves shaping India's media & entertainment industry. For exclusive industry intelligence and deal flow updates, reach us at [email protected]