Inside ‘KPop Demon Hunters’ sequel deal
Netflix has made it clear that the journey with KPop Demon Hunters is far from over, with a sequel confirmation just recently.
According to an exclusive new report by The Hollywood Reporter, citing a source close to the streamer, Netflix awarded Sony, the studio behind the record-breaking animated film, $15million cash bonus for the groundbreaking success of the first film.
For those uninitiated, KPop Demon Hunters is currently the most-watched film of all time on Netflix. As per the reports, the bonus deal was amicably agreed upon, which further provided Netflix executives with an edge to initiate a rapid sequel deal with Sony movie chief Tom Rothman and his team.
The bonus now totals Sony’s cash payout for KPop Demon Hunters to $40million, which was originally $25million. The initial $25million included a $20million fee, followed by a $5million fee for first-option rights for Netflix to secure the movie on the platform. Additionally, Netflix shouldered the entire $100million budget for the animated flick.
Moreover, Sony also retains a margin of the production expenditure as Netflix is remunerating the Sony-owned animation company, Imageworks, for their input in the movie. In addition to these, Sony collects a part of soundtrack sales and music publishing fees for certain tracks from the movie. However, the merchandising rights are exclusively with Netflix.
Although the exact details of the financial terms for the sequel remain shrouded in mystery, there is growth in every category. This includes some success metrics built in terms of bonuses. Regardless of what they are, the sequel deal is equally beneficial for Netflix as it allows the cultural momentum to thrive for an extended period. Meanwhile, Sony and Netflix have declined to comment on the exact figures.
The deal for the first film was done during the COVID-19 pandemic in 2021, a part of a multi-title agreement. During the monumental success of KPop Demon Hunters, some indicated that Sony Pictures Animation should have opted for a full theatrical release, while many other studios disagreed. However, amid the success laps, Sony made it clear that the film was right at home with Netflix.
Either way, the sequel news was a welcome update for fans worldwide who have kept the frenzy of KPop Demon Hunters going since its release. While it might be some time before it materialises, rest assured, the follow-up is surely coming your way in 2029.