Netflix Secures KPop Demon Hunters Sequel With $15 Million Sony Bonus

Netflix has officially greenlit a sequel to the global animated hit KPop Demon Hunters. The streaming giant paid Sony Pictures Animation a $15 million success bonus. This move secures the future of the breakout franchise. The deal was finalized recently between Netflix and Sony executives.

This bonus payment recognizes the film’s record-breaking performance on the platform. According to sources close to the agreement, it facilitated swift negotiations for the follow-up film. The original deal was struck during the pandemic in 2021.

Financial Windfall and Deal Structure

The bonus increases Sony’s total cash payout for the first film to $40 million. The original agreement included a $20 million production fee. It also included a $5 million payment for Netflix’s first-option rights.

Netflix fully covered the movie’s $100 million production budget. Sony also collects a margin of this budget through its Imageworks animation studio. The studio additionally receives a share of soundtrack sales and music publishing fees.

Strategic Win for Both Streamer and Studio

The sequel agreement represents a significant strategic victory for Netflix. It allows the platform to maintain momentum for the popular KPop Demon Hunters brand. Keeping the franchise active is crucial for subscriber engagement and cultural relevance.

For Sony, the deal provides substantial financial upside with minimal risk. A traditional theatrical release would have faced challenges recouping costs. The film’s profit margin on Netflix is considered strong by industry standards. Netflix retains all merchandising rights from the property.

The sequel to KPop Demon Hunters is now officially in development. This deal underscores the evolving relationship between streamers and major studios. The KPop Demon Hunters sequel will continue the story that captivated a global audience.

Info at your fingertips

How much did Netflix pay Sony for the KPop Demon Hunters sequel?

Netflix paid a $15 million success bonus to Sony to secure the sequel. This was on top of the original financial terms. The exact sequel budget has not been disclosed.

What was the original budget for KPop Demon Hunters?

The first film had a production budget of $100 million. This was entirely covered by Netflix. Sony received additional fees and profit participation.

Who owns the merchandising rights for KPop Demon Hunters?

Netflix retains sole ownership of all merchandising rights. This is a common practice for Netflix-owned original content. Sony does not participate in merchandise revenue.

Why didn’t Sony release the movie in theaters?

Netflix owns the distribution rights, so a theatrical release wasn’t an option for Sony. The film was part of a multi-title pact designed for streaming. The financial model offered a guaranteed return.

What does Sony get from the KPop Demon Hunters soundtrack?

Sony collects a share of the soundtrack sales and music publishing fees. This provides an additional revenue stream beyond the production deal. The music was a key component of the film’s success.

Trusted Sources

Industry trade publications and financial analysts.