KPop Demon Hunters is one of the biggest hits of the year, but the film would not have found this much success without Netflix. After a record-breaking weekend at the box office for KPop Demon Hunters, many have begun to wonder how it might have performed if Sony had decided to pursue a traditional theatrical release for the animated film.

KPop Demon Hunters is now Netflix’s most-watched movie of all time with 236 million views, and for good reason. The film has excellent crossover appeal, beautiful animation, and a chart-topping soundtrack. It taps into K-pop, which is itself a global phenomenon with a dedicated fanbase, in order to craft a uniquely exciting narrative.

In retrospect, the success of KPop Demon Hunters has made the film seem like an extremely sure thing. However, things were much more complicated for the K-pop-inspired movie. Released in a crowded landscape, it is now worth looking back and recognizing how much Sony needed Netflix to make this movie a hit.

Partnering With Netflix For Streaming Was The Right Choice For KPop Demon Hunters

KPop Demon Hunters was a riskier movie than it now seems. The movie began development in 2021, during the COVID-19 pandemic, when there were still real concerns about theatrical exhibition remaining a viable option for movie release. It was an untested, original story, and the studio’s relationship with the streamer looked to be a viable and sustainable one.

In 2021, Netflix released Vivo, The Mitchells vs. the Machines, and Wish Dragon for Sony Pictures Animation. Netflix and Sony’s deal was a strong match, which gave the streamer a first look at certain projects, while also guaranteeing production on a certain number of these films.

This ultimately resulted in a simple funnel for Sony, which saw them receiving up to $20 million, or $25 million per The Hollywood Reporter, in profit for the films they produced for the streamer, after production costs.

Considering the failure of original animated features in recent years, with disappointments like Ruby Gillman, Teenage Kraken, and the recent box office for Elio, this seemed like a good bet, especially when spread across multiple projects. Most of these films would not become cultural phenomena, and generating a simple paycheck for their production was beneficial for both studios.

Many now believe that KPop Demon Hunters could have been a huge hit in theatres, but this is unlikely. The film became a mᴀssive hit on Netflix due to excellent word of mouth, and the viewership grew week after week. In theatres, especially now, movies tend to reap their grosses much earlier.

That’s not to say KPop Demon Hunters wouldn’t have been successful in theatres. The film might have had a modest opening and held on well for several weeks. However, expectations around streaming would see the film available at home within a month and a half, and the urgency to see it in cinemas would not have existed.

In retrospect, KPop Demon Hunters might have been able to become profitable in theatres, but that would have required a bigger marketing spend from Sony than they would likely have been willing to pay. With everything known, moving the film to Netflix guaranteed its production, release, exposure, and profit in a way no theatrical release could have.

What KPop Demon Hunters’ Future Looks Like With Netflix

The difficulty for Sony now is figuring out the right path forward. KPop Demon Hunters has become a global phenomenon, and the theatrical release of sequels to the film would be all but guaranteed to make hundreds of millions of dollars, with a $1 billion gross or even higher certainly a distinct possibility, especially with its international appeal.

Full details of the deal between Netflix and Sony are not clear, but despite some reports that Sony could shop KPop‘s sequel to other studios, trades like The Hollywood Reporter have shared that any follow-ups will have to be made in collaboration between Netflix and Sony. This will make sorting out plans for a sequel difficult.

As it stands, the deal seems to be the same as it was before. Netflix would have the right to make any sequels to KPop Demon Hunters first, and there would be no reason for them not to. However, this would fall under the purview of the same agreement and would only earn Sony an additional $20-25 million per film.

Producing this sequel for such a low figure would not make sense for Sony Pictures Animation. Sequels to the film could potentially earn both studios billions of dollars in revenue, and there is certain to be some re-negotiating occurring for the follow-up film.

One worrisome concern is that Netflix has not been flexible about theatrical releases. In all likelihood, the next film will once again go straight to Netflix, despite theatrical being proven to be more profitable. Netflix has remained rigid on this, even to the point of eroding their relationships with creatives like the Duffer Brothers.

Netflix and Sony Pictures Animation are in talks for a KPop Demon Hunters sequel and, in all likelihood, a new deal that pays Sony much more on the next film will come together. However, much of the power lies with Netflix, and if they are not willing to budge, a sequel to KPop Demon Hunters could fall apart completely.