How Sony’s ‘KPop Demon Hunters’ Generated Only $20M on Netflix: Insights and Implications

According to a recent report from Puck, Sony Pictures finds itself in a tricky spot. The studio developed the hit film KPop Demon Hunters, an anime-style musical about a girl group that fights monsters, but it sold the distribution rights to Netflix. Since its release in June, the film has skyrocketed, now ranking as Netflix’s second most-watched English-language movie. It has garnered over 184 million views and is expected to surpass Red Notice, currently its top original film, by the end of its 91-day tracking period.

The film’s soundtrack has also taken off, with seven songs landing in Spotify’s global Top 50 and the single “Golden” hitting the Billboard Hot 100. Despite all this success, Sony’s earnings from the deal are capped at about $20 million, which is just a fraction of what they could have made if they had kept control.

The decision to sell these rights came during the pandemic when many theaters were closed and companies like Sony were eager for steady revenue. At that time, partnering with Netflix seemed smart, especially since they lacked their own streaming platform. Titles like The Mitchells vs. the Machines and Greyhound were licensed with optimism. However, the enormous success of KPop Demon Hunters reveals a missed opportunity for long-term profit.

It raises the question: would the film have performed as well in theaters? That’s up for debate. Many original animated films have struggled to find audiences post-COVID. Yet, the combination of a catchy soundtrack, a strong social media presence, and K-pop’s global fanbase propelled the film to success on Netflix.

Matthew Belloni of Puck points out that Netflix not only has a hit on its hands but also an emerging franchise that could lead to sequels, merchandise, and ongoing streaming revenue. Meanwhile, Sony can only hope that future installments bring better returns, but for now, they hold limited rights in a film that has taken the world by storm.

This situation shines a light on the shifting landscape of entertainment distribution, especially in the wake of the pandemic. As streaming platforms become increasingly dominant, traditional studios like Sony may need to rethink their strategies for the future.

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