Golden Rule: Netflix Sony caught off-guard KPop hit

Netflix and Sony were taken by surprise by their unexpected hit, KPop Demon Hunters. The film, developed by Sony Pictures Animation, follows the story of a girl-group called Huntr/x who sing songs by day and fight demons by night. Interestingly enough, Sony didn’t seem too confident in the project initially, which became clear when they struck a deal with Netflix back in 2021.

In this unique agreement, Netflix became the primary streaming platform for Sony’s films, both post-cinema release and for direct-to-streaming productions. As part of the deal, Netflix covered the production costs of any films Sony intended for streaming and paid a fee to the studio. Enter KPop Demon Hunters, which Netflix agreed to finance for $100m, plus a $20m fee to Sony.

While $120m might seem like a hefty investment, it’s relatively small compared to Netflix’s annual $18 billion content spending. When the film premiered on June 20th, it did so without much fanfare. Unlike traditional blockbuster releases, Netflix didn’t go all out with billboards, TV ads, or other promotional tactics. Even the lack of merchandise or toys, crucial for children’s films, further stressed the low expectations for the movie.

Despite the minimal marketing, KPop Demon Hunters skyrocketed in popularity, hitting 236 million views on Netflix, surpassing even Red Notice, a heavily promoted film starring A-listers like Dwayne Johnson, Gal Gadot, and Ryan Reynolds. The film’s success can be attributed to its representation of the global KPop community, infectious soundtrack, and upbeat tone. In fact, one of its tracks, ‘Golden,’ topped the Billboard charts in the US, marking a milestone for soundtracks with four songs in the top ten.

The film’s impact extended beyond streaming audiences, with Netflix hosting singalong screenings in cinemas and the soundtrack making waves around the world. It’s safe to say that KPop Demon Hunters went from an underestimated project to Netflix’s biggest hit, demonstrating the power of unexpected success in the world of streaming entertainment.