In a thrilling turn of events, Sony Pictures is reportedly in discussions with Netflix to create an animated sequel to the hit film, KPop Demon Hunters. This news comes from sources close to the situation, as reported by The Hollywood Reporter. The fantasy musical has become a cultural phenomenon—a rare gem that every Hollywood studio dreams of discovering but often fails to achieve.
Recent developments, including Netflix's surprise release of a sing-along version of KPop Demon Hunters in theaters over the weekend of August 22-24, have reignited discussions about the film's immense success. The movie has now become the most-watched English-language film in Netflix's history, amassing a staggering 236 million views. This achievement raises questions about whether Sony made the right decision in 2021 when it handed over the movie to Netflix instead of pursuing a big-budget theatrical release.
Industry experts and box office analysts have debated whether Sony's choice was prudent, especially considering the current post-pandemic landscape where original animated films struggle at the box office. Even well-established studios like Pixar are feeling the pinch; their original film Elio recently opened to just $21 million, marking the worst debut in Pixar's history. Critics argue that Sony may have missed out on a significant theatrical opportunity, with one insider commenting, “It was certainly a mistake for Sony to give it up. Sounds like this was new IP, they didn’t think it would land and was just bad luck for them.”
Despite the debates, there is a silver lining for Sony. The profit margins for animated films typically range from 10% to 12%, but in the case of KPop Demon Hunters, the studio could be looking at margins between 20% and 30%. Under the terms of the original deal, Netflix agreed to cover the film's full budget of $100 million, in addition to paying Sony a fee of $25 million, which represents 25% of the budget and other associated costs. Furthermore, Sony benefits from a share of the film's soundtrack sales and specific music publishing fees.
On Tuesday, Netflix officially announced that KPop Demon Hunters has surpassed previous records to become the most-watched English-language film on its platform, overtaking Red Notice, which starred big names like Dwayne Johnson and Ryan Reynolds. This success is particularly impressive given that KPop primarily targets families and young females aged 25 and under, showcasing its broad appeal. Additionally, the film's soundtrack has made history by featuring four simultaneous Top 10 hits on the Billboard Hot 100, led by the chart-topping single “Golden” by Huntrix.
The collaboration between Sony and Netflix has proven fruitful, with reports indicating that both parties are satisfied with the partnership. A significant advantage lies in the established rapport between the two studios, especially given that Netflix's animation head, Hannah Minghella, previously worked at Sony. In a recent statement, Netflix head of film, Dan Lin, expressed his enthusiasm for working with Sony Animation, praising the creative team and their collaborative efforts.
As the excitement around KPop Demon Hunters continues to grow, discussions of a potential sequel are underway. However, the immediate focus remains on finalizing a deal between Sony and Netflix. Fans are eagerly awaiting updates, as the journey of KPop Demon Hunters appears far from over. Stay tuned for more developments in this captivating story.
