To understand the magnitude of what Netflix acquired, consider what Red Notice represented for the platform. That 2021 action film starring Dwayne “The Rock” Johnson, Ryan Reynolds, and Gal Gadot held Netflix’s top spot for nearly four years, with its 230.9 million views becoming the benchmark for Netflix success.
“Whether it’s for games, films, or anime, we don’t have that much IP that we fostered from the beginning. We’re lacking the early phase [of IP], and that’s an issue for us.”
Sony has been candid about its struggles to develop lasting entertainment franchises beyond Spider-Man. Company executives have acknowledged the studio needs more original intellectual property fostered from the beginning—exactly what KPop Demon Hunters represents. Instead, Sony now watches Netflix leverage the property for sequels, merchandise, and much more. (Sony, for what it’s worth, tells Fortune it will share in some of the profits, including album sales. Netflix offered no further comment.)
For Sony, the sequel represents both a vindication and frustration. The studio proved it could create a global hit, but the financial upside flows primarily to Netflix. While Sony retains the right to produce future installments, the terms of any new deals remain to be negotiated—and Netflix now holds most of the leverage.
The broader lesson extends beyond this single film. In an industry where intellectual property increasingly drives long-term value, the difference between owning a hit and creating one for someone else can be measured in billions. KPop Demon Hunters will likely generate revenue for Netflix across multiple films, series, consumer products, and live experiences for years to come. Sony, meanwhile, will move on to the next project, hoping lightning strikes twice.
