KPop Demon Hunters becomes Netflix’s biggest hit but there’s a twist for Sony

In only 67 days, KPop Demon Hunters, an animated film about a K-pop girl group who happen to also be demon hunters, amassed 236 million views, making it Netflix's most-watched film in its history. Its four catchy songs, all simultaneously making the Billboard Hot 100 top 10, broke every music chart record. But behind all this glitz is a twist: Sony Pictures Animation, which made the film, sold early for a cool profit of $20 million, turning down the potential of the multi-billion-dollar franchise. This is a case of a cultural phenomenon— and a deal that will be the envy of Hollywood.

Sony Pictures Animation spent $100 million on KPop Demon Hunters, betting that the global power of K-pop mixed with a demon-hunting adventure would go big. Directed by Maggie Kang and Chris Appelhans, KPop Demon Hunters tells the story of Huntr/X, a fictional girl group who are both pop stars, while simultaneously fighting demons. The film has several pop culture references and a sexy rival boy band called Saja Boys. 

The gamble paid off spectacularly. The film’s soundtrack, led by “Golden” at #1, became a cultural force, marking the first time an animated film’s songs dominated the charts since Encanto. A theatrical sing-along release last weekend pulled in $18-20 million across 1,700 theatres, proving its pull even with streaming access.

Sony’s pandemic-era misstep and Netflix’s billion-dollar bonanza

In 2021, with theatres still in shambles and recovering from pandemic closures, Sony struck a deal with Netflix to pay a $100 million budget plus a maximum $20 million fee for K-pop Demon Hunters. The type of deal was “direct-to-platform,” which guaranteed Sony’s profit but gave Netflix all rights. It was a sensible decision given the market's conditions: animated films were a gamble at the box office, and Sony had no streaming platform to distribute the film through.

There was also no indication that the film would achieve its level of success, ultimately padding Netflix’s numbers on the film to a staggering 282.3 million views, surpassing Red Notice at 230.9 million views. Sony's $20 million was nickels in comparison to the film as a franchise is on its way to sequels, merchandise, and live experiences, while Netflix will reap all of those rewards, not Sony.

For Netflix, KPop Demon Hunters is a dream realised, a breakout animated franchise. Its 10-week reign atop Netflix’s movie charts, with 25.4 million views in the latest week, shows rare staying power. The soundtrack’s success and theatrical earnings signal untapped potential, from Netflix House venues to sequel talks already underway. Meanwhile, Sony, despite creating the hit, faces a bitter irony. As its CFO, Hiroki Totoki, lamented last year, Sony craves original IP to rival Spider-Man. KPop Demon Hunters was that opportunity, now powering Netflix’s empire.

Where to watch KPop Demon Hunters

KPop Demon Hunters is available for streaming on Netflix, with a sing-along version available as well. You can find it on grok.com, x.com, or through the apps for Netflix and X on iOS and Android, where free access is subject to a limited quota, or you can subscribe to SuperGrok or X premium for more.

To learn about a sequel, stay tuned for more such updates.