Sony’s $100M Hit Goes to Netflix: ‘KPop Demon Hunters’ Could Be a Billion-Dollar Franchise, But Sony Will Make Just $20M

Sony Pictures had a tough summer at the box office. The studio didn’t release a single movie that made $500 million from May to August, and its biggest hit of the year, 28 Years Later, only made $150 million worldwide. They were definitely hoping for something bigger.

Ironically, Sony actually created one of the biggest movie sensations of the season, but they won’t get much of the credit, or the money. The movie is KPop Demon Hunters, an anime-style musical adventure about a K-pop trio who fight monsters. Sony Pictures Animation developed and produced it, spending more than $100 million on the film. But instead of releasing it in theaters, Sony sold the rights to Netflix.

The deal means Netflix owns the movie and its potential sequels, spinoffs, music sales, and merchandise. Sony will only make about $20 million from the deal, according to sources familiar with it. That’s a small slice of what could become a billion-dollar franchise for Netflix.

Since its release in June, KPop Demon Hunters has been a massive hit on Netflix. The streaming service reports it’s now the second most popular English-language film ever on the platform. Netflix believes it could even surpass the current top spot soon.

The music has also taken off. Songs from the movie, performed by the fictional band HUNTR/X and the real K-pop group Twice, are topping charts around the world. In particular, the song Golden hit number one on the Billboard Hot 100 chart.

“It’s impossible to put a value on this franchise,” said John Mass, president of Content Partners, which buys and sells film libraries. “Given the viewership numbers and plans for sequels and spinoffs, and the popularity of the music, it may end up being comparable to the Disney animated hits.”

Sony could have made more money if they released the movie in theaters first, but the 2021 deal with Netflix made selling it the easiest path. At the time, the studio agreed to let Netflix control some projects directly while guaranteeing Sony a fixed payment, capped at $20 million per film. It made sense back then because theaters were still struggling due to the pandemic.

Now, the hit is mostly Netflix’s success. The platform even plans a “sing-along” version of the movie in over 1,100 theaters for a short special run, but Sony won’t see any of the box office money from that event, according to Matt Belloni.

For Netflix, KPop Demon Hunters is a dream hit: a relatively cheap movie that has a built-in audience for sequels, merchandise, and music. For Sony, it’s a reminder that even when you make a hit, selling it too early can mean missing out on the big payday.

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