K-Pop Demon Hunters: How Sony Lost Nearly $1 Billion

K-Pop is officially the hit of 2025, the most-watched movie on Netflix ever.

What many don't know is that Sony Pictures Animation decided to sell the rights to Netflix K-Pop Demon Hunters, it seemed like a prudent choice: immediately cash in over one hundred and twenty million dollars and eliminate the risks of a theatrical release in a still uncertain period. No one could have imagined that the animated film, inspired by the world of K-Pop, would become a global phenomenon, breaking all records for views on the platform and even conquering the music charts.

Today, however, the decision is at the centre of a scandal: Sony has practically given up on billion-dollar profits and even to sequel rights, leaving Netflix in complete control of a franchise destined to last.

But what happened?

In 2021, in full post-pandemic uncertainty for cinema, Sony Pictures Animation chose not to distribute in theaters K-Pop Demon Hunters.
Through the existing output deal, the film was sold exclusively to Netflix, which has:

• the budget was entirely covered, estimated at around 100 million dollars;
• paid a 25% bonus, equal to approximately 20 million extra;
• obtained all exploitation rights, without leaving Sony any profit share.

K-Pop Demon Hunter Numbers

Upon its release in June 2025, the film exploded in popularity on Netflix, becoming the most viewed title in the history of the platform with over 236 million views.
The success didn't stop there: the soundtrack climbed the world charts and, in August, a special sing-along release in US theaters has registered about $16–19 million in just one weekend.

Why is there talk of a Sony scandal?

Sony's choice turned out to be questionable because, in the face of a product that has demonstrated a potential billion-dollar franchise, the studio only collected the immediate margin of the agreement, giving up:

• box office profits;
• revenue from streaming success fees;
• merchandising and spin-offs;
• rights to any sequels.

Who will own the rights to the sequels?

With the 2021 agreement, the intellectual property has passed entirely to Netflix.
This means that any sequel, series, or spin-off can only be developed and exploited by Netflix. Sony, at most, could come back into the game as executive producer in charge, but not as the IP owner.

Cultural controversies from China

Commercial success was accompanied by controversies on social media:

• on one side, Chinese netizens they accused the film of cultural appropriation, claiming that the costumes and sets were closer to Chinese tradition than to Korean one;
• On the other hand, a viral theory claimed that the soundtrack songs were generated by artificial intelligence. The singers involved, including Rei Ami, they strongly denied, claiming full artistic authorship.

Sony's regret

In hindsight, Sony executives like the CEO Ravi Ahuja they admitted that perhaps the film deserved a real theatrical distribution. The case has become emblematic: a mix of global success and missed opportunity, which shows how risky it is to completely give up the rights to a stock with explosive potential.