Netflix and Sony's Big Payday from KPop Demon Hunters

Netflix is shelling out big bucks to Sony for the hit movie KPop Demon Hunters. The streaming giant gave Sony a $15 million bonus on top of the original $25 million deal. This brings the total payout to $40 million for the first film. The original deal included a $20 million fee plus $5 million for first-option rights. Netflix also covered the entire $100 million production budget. Sony is benefiting in more ways than just the bonus. They get a share of the production budget since Netflix is paying Sony's animation studio, Imageworks, for their work. Sony also earns a portion of soundtrack sales and music publishing fees. However, Netflix keeps all the merchandising rights. The exact financial details for the sequel are still under wraps, but expect increases across the board. This deal is a win for both sides. Sony gets a bigger paycheck, and Netflix can keep the KPop movement going strong. Some industry insiders think Sony might have made more money if they had released the movie in theaters. But given the high production and marketing costs, recouping $40 million in profit would have been a challenge. Plus, Netflix owns the distribution rights, so Sony couldn't have taken the movie back even if they wanted to. The original deal was made during the pandemic in 2021 as part of a larger agreement. Both companies are tight-lipped about the numbers, but the success of KPop Demon Hunters speaks for itself.