Once a demon hunter, always a demon hunter. Or at least, that’s the expectation.
Sony Pictures is discussing with Netflix about creating an animated follow-up toKPop Demon Hunters, sources tell The Hollywood ReporterA fantasy musical has become a cultural phenomenon that every Hollywood studio or streaming service spends hundreds of millions of dollars trying to discover but rarely succeeds in finding.
The occurrences of the last few days – such as Netflix releasing an unexpected sing-along edition of the Sony Pictures Animation film in cinemas over the Aug. 22-24 period, orDemon Hunter becoming the most-watched An English-language film that has become a top-streaming title is sparking renewed discussion about whether Sony’s movie company handed over the keys to the kingdom in 2021 by giving the film to Netflix for release, rather than funding a high-budget theatrical release independently from a first-time filmmaker (Maggie Kang) who doesn’t have major stars attached.
More frequently than not, box office analysts and competing studio executives believe Sony made a prudent and appropriate decision, especially given that original animation is experiencing a decline at the box office in the post-pandemic period (established animated franchises perform better). Even Pixar is not unaffected. This summer,Elio, also an original tale, generated $21 million in its opening, marking the weakest debut in the history of the renowned animation studio established by Steve Jobs and subsequently acquired by Disney.Elioreached $73 million in domestic earnings and $152 million worldwide, despite a net budget of $150 million and a significant marketing investment (ouch).
Some believe Sony should have persisted with a full theatrical release, despite the financial gamble. “It was definitely a mistake for Sony to walk away,” says an insider from the theater side. “It seems this was new intellectual property, they didn’t expect it to succeed and it was just unfortunate timing for them.”
But there is a positive aspect: Regarding profit margins, a studio aims for a range between 10% and 12%. In the case ofDemon Hunters, Sony might face a 20% to 30% increase.
The agreement for the firstDemon Hunters– which was included in a broader, multi-film agreement made during the peak of the pandemic in 2021 – involved Netflix covering the film’s full $100 million cost along with a $25 million payment to Sony, equivalent to 25 percent of the budget and other associated expenses. Sony also gets a share of revenue from soundtrack sales, as well as music publishing fees for specific songs.
On Tuesday, Netflix revealed thatKPopcurrently holds the number one position on thelistmost-viewed English-language movies with 236 million total views, surpassing the former leaderRed Notice, featuring Dwayne Johnson, Ryan Reynolds, and Gal Gadot. That’s a remarkable achievement for a movie likeKPopThat’s a film designed for families and women under 25. (Netflix’s top 10 list of all time is determined by the number of views a title receives within its first 91 days of being available.)
And the movie’s music now has the honor of being the first to have four Top 10 songs on the Billboard Hot 100, led by Huntrix’s “Golden.”
Sony also receives a share of the money that Netflix is paying Sony’s animation studio, Imageworks, known for its visually innovative and Oscar-winning work.Spider-Verse films (like Spider-Verse, a campaign for an Oscar is being organized forDemon Hunters).
For Netflix, which has deep financial resources, the victory ofDemon Huntersis significant, and highlights the importance of ensuring children and families are content as part of its broader approach to keeping subscribers satisfied, which is Netflix’s primary focus. One source states that children are watchingDemon Huntersrepeatedly, or six to eight times on average (for some, it’s higher).
Insiders from both parties claim the Sony-Netflix collaboration has proceeded without issues (though naturally, they would say so). It is accurate that there was an existing connection: Netflix’s animation head, Hannah Minghella, spent many years at Sony, working alongside the current Sony animation head, Kristine Belson. In a recent statement toTHR, Netflix’s film head Dan Lin made a special effort to provide a shout out to Sony, expressing that he and Minghella are “excited to be backing” Kang and co-director Chris Appelhans “and Kristine Belson along with her team at Sony Animation” as their studio collaborator.
In the same conversation withTHR, Lin pointed out that Netflix enables its movies to gain an audience gradually and over time. This is a benefit that theater owners cannot provide if a film starts slowly. “As word of mouth increased and social media became more active, we witnessed a significant rise in viewership and the movie turned into a cultural sensation – it’s one of the few films that managed to expand its audience during its fifth and sixth weeks of release,” Lin said.
Kang and Appelhans have discussed a potential sequel in general terms. However, the more immediate concern is reaching an agreement between Sony and Netflix.
Stay tuned.
