Sony might be regretting its decision to strike a distribution deal with Netflix during the uncertain pandemic era, as the move created what has now become a global phenomenon, KPop Demon Hunters, while earning the studio only a fraction of its true value.
Produced by Sony Pictures Animation, the animated musical urban fantasy film has since become Netflix’s most-watched movie ever, holding the No. 1 spot even two months after its release.
So, what’s behind this deal that left Sony on the losing end?
How Did Netflix Win with KPop Demon Hunters while Sony Missed Out?
Sony began producing KPop Demon Hunters in 2021, with the full creative team already attached and a reported production budget of around $100 million.
With the global rise of K-pop, the film was positioned to make an international appeal. However, given the uncertainties of the pandemic era, when the entertainment industry had largely come to a halt and box office success was uncertain, the studio opted to strike a distribution deal with Netflix to guarantee returns.
According to Puck’s Matthew Belloni, the deal followed a “direct-to-platform” arrangement: Netflix would cover Sony’s production budget and pay an additional fee capped at $20 million per project.
In return, the streamer acquired all rights to the film and had no obligation to share profits, even if the movie became a breakout hit.
At the time, the deal seemed reasonable. Theaters were only beginning to reopen after widespread closures, animated films were underperforming at the box office, and Sony lacked its own streaming platform.
But in seeking to avoid a potential theatrical flop, the studio never anticipated that KPop Demon Hunters would go on to become a global sensation.
How Successful Kpop Demon Hunters Has Become?
To say KPop Demon Hunters is a hit movie would be an understatement. Since its release on June 20, the film has remained the No. 1 title on Netflix’s Global Top 10.
It has topped the streamer’s movie list for 10 consecutive weeks, racking up a staggering 236 million views—making it Netflix’s most-watched film of all time. The movie has also appeared in the Top 10 in 93 different countries.
With this massive success, KPop Demon Hunters has dethroned Netflix’s previous record-holder, Red Notice, starring Dwayne Johnson, Gal Gadot, and Ryan Reynolds, which has 230.9 million views.
Beyond breaking streaming records, the film has also made music history. Four of its soundtrack songs landed in the Billboard Hot 100’s Top 10—the first time in 67 years that multiple tracks from the same soundtrack achieved such success.
The songs include “Golden” at No. 1, “Your Idol” at No. 4, “Soda Pop” at No. 5, and “How It’s Done” at No. 10.
Netflix even tested the film’s popularity on the big screen, releasing a sing-along version in 1,700 theaters over the weekend. Despite already being available to stream, it still pulled in an estimated $18–20 million at the box office.
With such momentum, it’s no surprise that Netflix and Sony are now in talks for a KPop Demon Hunters sequel.
The film is also poised to evolve into a multibillion-dollar franchise—something Netflix has long dreamed of building. Reportedly, plans are already underway for a trilogy, a spinoff TV series, a stage musical, a short film bridging the main installments, and even a live-action remake.
As Netflix celebrates one of its biggest wins to date, KPop Demon Hunters has become a huge missed opportunity for Sony—a studio still struggling to develop a successful franchise after Spider-Man.
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