Netflix and Sony's Big Payday from KPop Demon Hunters

Netflix is making a significant investment in the hit movie KPop Demon Hunters. The streaming giant has awarded Sony a $15 million bonus on top of the original $25 million deal, bringing the total payout for the first film to $40 million.

Breakdown of the Deal

• Original Deal: $20 million fee + $5 million for first-option rights
• Production Budget: Netflix covered the entire $100 million production cost

Benefits for Sony

• Share of Production Budget: Since Netflix is paying Sony's animation studio, Imageworks, for their work
• Soundtrack & Music Publishing Fees: Sony earns a portion of these revenues
• Merchandising Rights: Netflix retains all merchandising rights

Sequel Expectations

• Financial details for the sequel are still confidential, but industry insiders expect increased payouts across the board
• This deal is a win-win for both companies

Theater vs. Streaming Debate

• Some insiders believe Sony might have earned more with a theatrical release
• However, recouping $40 million in profit would have been challenging due to high production and marketing costs
• Netflix owns the distribution rights, so Sony couldn't have taken the movie back even if they wanted to

Background

• The original deal was struck during the pandemic in 2021 as part of a larger agreement
• Both companies remain tight-lipped about the numbers, but the success of KPop Demon Hunters speaks for itself