KPop Demon Hunters: Sony's Gift to Netflix?
- Feb 7
- 6 min read
Updated: Feb 12
When K-pop superstars Rumi, Mira and Zoey aren't selling out stadiums, they're using their secret powers to protect their fans from supernatural threats.
Netflix
Netflix’s New Record
KPop Demon Hunters has officially become Netflix’s most watched film of all time! Unseating Red Notice, an action-comedy from 2021 starring Dwaye Johnson, Gal Gadot, and Ryan Reynolds.
The film was released globally on Netflix on June 25th and had a limited release in theaters in Los Angeles and New York. It quickly snowballed and exploded through word-of-mouth into a phenomenon!
Originally slated for a traditional theatrical run, Sony Pictures sold KPop Demon Hunter to Netflix for only $20 million dollars!
After becoming a megahit, did Sony make a mistake by selling the Kpop adventure? Let’s discuss!
Billboard Hot 100 Hits
The music for the film has been so incredibly popular that four songs landed on the Billboard Hot 100 — a historic first for a soundtrack!
Billboard Hot 100, Aug 28 2025
#1 Golden
#10 How It’s Done
#20 What It Sounds Like
#25 Takedown
K-Pop’s U.S. popularity began growing in the early 2010s, especially after PSY’s “Gangnam Style.” BTS debuted in 2013 and helped K-Pop break into the U.S. mainstream around 2017 — paving the way for groups like Blackpink, Stray Kids, and others to gain international recognition.
In a timely manner, Apple TV+ is coming in hot, just recently debuting a brand new show, KPopped, a reality competition hosted by Megan Thee Stallion and Psy in Seoul, Korea where global music icons collab with Korean pop idols to give their songs a Kpop twist. Check out the trailer here.
A Box Office Hit?
KPop Demon Hunters returned to theaters with an exclusive one-weekend Sing-Along Event in North America on August 24 and 25 — it came out #1 at the weekend box office with $18 million!
So…it begs the question…
Did Sony make a mistake by selling the film?
It is easy to say Sony made a mistake after the film has been released and become a proven success.
But Sony very likely made the correct decision.
Netflix is available in over 190 countries and has over 300 million subscribers and therefore the infrastructure to successfully introduce a brand new IP on a wide scale— especially when subscribers can check it out at no additional cost.
Sony’s Deal(s) with Netflix
The truth is KPop Demon Hunters was coming to Netflix sooner or later even if Sony had a theatrical release for the film. Why?
Sony Pictures Entertainment remains the only major film studio without its own streaming service.
Streamers and their studio owners.
HBO MAX ↔️ Warner Bros Discovery
Disney+ ↔️ The Walt Disney Company
Peacock ↔️ NBCUniversal
Paramount+ ↔️ Paramount
Sony Pictures has a strong businesss relationship with Netflix. Since 2021, the company has held a “pay-one window” deal with Netflix in the United States, meaning Netflix acquires their films for an exclusive streaming debut after theatrical and home entertainment releases.
“Pay-one” refers to the first phase of a sequential licensing system designed to maximize revenue from different platforms over time. Sony also has a pay-two window with The Walt Disney Company; meaning titles move from Netflix (pay-one window) over to Disney+ or Hulu once the streaming rights expire.
In 2021, among uncertainty in the entertainment industry during the COVID-19 pandemic, Sony and Netflix had a “direct-to-platform” agreement in which Netflix financed the estimated $100 million production budget for KPop Demon Hunters with plans for the film to be exclusively available for streaming on Netflix. In addition, Netflix paid Sony a $20 premium in order for the studio to make a profit and not simply breakeven— bringing Netflix’s total spend on the project closer to $120 million. Before productiom Sony had their own costs for the project’s development.
Echos of Encanto
KPop Demon Hunters may have earned modest box office earnings from a regular theatrical run, but it also could have absolutely blew up when it became available to stream similar to Disney Animation’s Encanto (2022).
Encanto
Theatrical release: November 24 2021
Streaming release: December 24 2021
“We Don’t Talk About Bruno” from the soundtrack even hit #1 on the Billboard Hot 100 — a first for Walt Disney Records.
According to Nielsen, Encanto was the most successul film on streaming in 2022 with 27.416 billion minutes viewed, that’s more than double Turning Red at second place with 11.427 billion minutes viewed! ⬇️
Encanto also comes in at #5 as one of the most watched programs available on streaming! Check out the competition! It’s the only film on the chart surrouded by episodic titles! ⬇️
“Moana” on Disney+
Moana back in 2016 made $643 million worldwide, but years later after the launch of Disney+, the film has impressively and consistently charted on the Nielsen charts when it became available to stream on Disney+ when the platform launched in 2020. According to Nielsen data, Moana has ranked in the top 5 most streamed films of the year since 2020. In 2024, the film finished as the most watched film of the year for a second consecutive year!
The popularity of the film on streaming lead to the development of Moana 2 (2024) which earned just over $1 billion worldwide. The sequel was orignally set to be a Disney+ miniseries but Bob Iger and fellow executives were highly impressed upon watching the footage and called for a theatrical release.
A Cold Summer Box Office
Only 1 film hit the billion dollar mark this summer, Disney’s Lilo & Stitch.
Last year Pixar’s Inside Out 2 was the highest grossing film of the year with $1.7 billion worldwide, but the animation studio wasn’t able to replicate its success with Elio.
In a sea of competition, Elio faced off again its own studio—released less than a month after Lilo & Stitch—earning only $152M worldwide.
In addition, Elio was released in a summer in which theaters were being hit back to back with big budget blockbusters — nearly all delivering a lackluster performance.
Nicholas Barber in a must read article for BBC highlights how the vast majority of original animated films—with a few exceptions such as The Bad Guys (DreamWorks) and The Wild Robot (DreamWorks)—perform well relative to “familiar” stories.
2 of the top 3 grossing films this summer—and the year so far—are live-action remakes and the overwhelming majority of films released are connected to established IP. Audiences today are a lot less willing to take a chance on original films.
“…the crashing and burning of Elio suggests that it's much more challenging for films to succeed if they aren't sequels, prequels, remakes, adaptations of video games, or some unholy combination of the above.”
Nicholas Barber @ BBC
Parting Thoughts
Did Sony make a mistake? Not really. Any project has the potential to become a surprise hit. Sony made a careful and calculated decision with due dillgence and professional counsel and concluded offloading the film was the correct decision.
Did Netflix strike gold? No question.
“…Sony Pictures did make one of the biggest movie sensations of the summer—a project from its animation division that cost more than $100 million to produce and will likely become a billion-dollar franchise, spawning sequels, spinoffs, music sales, Halloween costumes, and all the trimmings of a big fat Hollywood studio hit. It’s just that most of that value has and will accrue to Netflix…“
Matthew Belloni @ Puck News
Both Sony Pictures and Netflix won. Sony Pictures Animation created the project, the team has a lot to be proud of.
The success of KPop Demon Hunters is also a testament to the strength of Netflix as a platform.
What’s next for HUNTR/X?
You can bet Netflix will be going all in with an awards campaign.
We may even see a live performance of “Golden” at the 2026 Academy Awards!
THR has reported early discussions are already happening between Sony and Netflix to develop another installment!
Interestingly, Sony’s pay window with streamers is set to expire in 2026 and it’ll be interesting to see whether the studio renegotiates deals or it develops a new pay window pipeline. There are no plans for Sony to create its own streaming service.
Sony Pictures may even potentially release the follow-up installment in theaters. Could it potentially be a success like Moana 2 or is this a comet flashing by? The success of KPop Demon Hunters shows audiences are hungry for something new, but they’re holding themselves back from making discoveries in movie theaters.
“…if you look at the Netflix all-time Top 10, many of the films do not feel “theatrical” in the modern sense. Meaning what people will watch on Netflix for ‘free’ isn’t what they will pay to see in theaters.”
Matthew Belloni @ Puck News
The sequel’s success will be dependent on timing and Sony and Netflix determining whether to build anticipation and develop a franchise with care and quality, or create “fast food” follow-up installments.