Once a demon slayer, always a demon slayer—or at least that’s the aspiration. Sources have revealed that Sony Pictures is currently in discussions with Netflix to create an animated sequel to KPop Demon Hunters, according to The Hollywood Reporter. The fantasy musical has become a cultural phenomenon, something that Hollywood studios and streamers invest heavily to achieve but seldom do.
Recent developments, including Netflix’s surprise release of a sing-along version of the film in theaters over the weekend of August 22-24, as well as Demon Hunter becoming the most-watched English-language film on the platform, have reignited discussions about whether handing the movie over to Netflix in 2021 was a strategic error for Sony. At the time, the decision balanced the risk of funding a big-budget film from first-time director Maggie Kang, who had no major stars attached to the project.
Box office analysts and competing studio executives generally agree that Sony made a prudent choice, especially given the downturn of original animation in the post-pandemic market—also noted by the underwhelming performance of Pixar’s Elio, which launched to $21 million, marking the studio’s worst opening ever. Elio eventually grossed a total of $73 million domestically and $152 million worldwide against a net budget of $150 million, not including marketing costs.
Some insiders argue that Sony should have committed to a full theatrical release, despite the risks involved. “It was certainly a mistake for Sony to give it up,” remarked one insider from the exhibitor sector. “It sounds like this was new IP, they didn’t think it would land and was just bad luck for them.”
However, a silver lining exists in the financial outcome; studios typically aim for profit margins around 10 to 12 percent, but Demon Hunters might yield Sony between 20 to 30 percent.
The original deal for Demon Hunters, part of a broader agreement made during the pandemic’s challenging times, included Netflix covering the film’s entire $100 million budget and paying Sony a fee of $25 million, equating to 25 percent of the budget along with covering certain additional costs. Furthermore, Sony earns from the film’s soundtrack sales and music publishing rights.
On Tuesday, Netflix announced that KPop has risen to the number one position among the most-watched English-language films, accumulating 236 million views, surpassing the previous record-holder Red Notice, featuring Dwayne Johnson, Ryan Reynolds, and Gal Gadot. This achievement is particularly remarkable given that KPop is a two-quadrant film targeting families and women aged 25 and younger. Netflix ranks its all-time top 10 based on views within the first 91 days of release.
Additionally, the film’s soundtrack has made history by having four songs in the Top 10 of the Billboard Hot 100 simultaneously, led by Huntrix’s “Golden.”
Sony also benefits from the revenue Netflix directs to Sony’s animation studio, Imageworks, renowned for its Oscar-winning Spider-Verse films. Similar to these films, a campaign for the Oscars is being planned for Demon Hunters.
For cash-rich Netflix, the success of Demon Hunters is significant, emphasizing the need to engage children and families as part of its strategy to retain subscribers. According to industry sources, kids are reportedly watching the film repeatedly, averaging between six to eight views, with some viewers even more engaged.
Sources from both companies indicate that the Sony-Netflix partnership has been smooth, a sentiment likely influenced by the history between the two, particularly with Netflix’s animation head Hannah Minghella previously working for Sony and collaborating with the current head of Sony Animation, Kristine Belson. Netflix’s film chief, Dan Lin, recently expressed appreciation for Sony in a statement to THR, highlighting the studio’s support of both Kang and co-director Chris Appelhans, alongside Belson and her team.
Lin elaborated that Netflix’s approach allows its films to cultivate an audience gradually, a privilege not available to cinemas where a film’s performance must be immediate. “As word of mouth spread and social media caught on, we saw viewing really take off and the movie became a cultural phenomenon—it’s one of the only films to grow its audiences in its fifth and sixth weeks of release,” Lin observed.
While Kang and Appelhans have hinted at the possibility of a sequel, the immediate focus remains on finalizing the deal between Sony and Netflix.
Stay tuned.
