Picture Credit: Netflix
It’s no secret that KPop: Demon Hunters is one of Netflix’s most colossal success stories. Since its June 2025 release, the Sony Pictures Animation-produced film has shattered records, pulling in hundreds of millions of views and becoming the streamer’s most-watched original title in history. Despite some mud-slinging just before Christmas about budget numbers, bonuses, etc., Sony Pictures executives have come out united in recent weeks, saying Netflix was the best home for the movie.
Because Sony sold the film to Netflix to cover its budget and pay a premium—essentially giving up the highly lucrative, long-term franchise and merchandising rights—many industry pundits and fans have labeled the move a massive financial fumble for Sony.
But according to Sony Pictures Chairman Tom Rothman, and again recently with Sony Pictures Animation bosses Kristine Belson and Damien de Froberville, they aren’t losing any sleep over it.
During a recent episode of The Town podcast with Matt Belloni, Rothman was asked point-blank if he regretted the deal. His answer? Absolutely not. Here is why the Sony boss believes handing Netflix its biggest animated hit was actually a strategic win.
The “Parachute Business” of Theaters
First and foremost, Rothman noted that the modern theatrical box office is a strictly unforgiving environment for original animated films without an established brand. He described the traditional theatrical release as a brutal test of immediate survival. “The motion picture business that I’m in… it’s the parachute business, meaning you open or you die,” Rothman explained. When Belloni asked whether K-Pop: Demon Hunters would have opened successfully in traditional theaters, Rothman bluntly replied, “No, I don’t.”
Word-of-Mouth Needs Time (and Free Rewatches)
As we covered throughout its run in the top 10s, KPop Demon Hunters took its time to start catching fire and bucked the trends of most Netflix movies trajectories. Rothman pointed out that Netflix’s model allows audiences to discover a film at their own pace, which is vital for original stories. “What the great advantage there is, and why it’s in the right place, especially for that particular thing that was a word of mouth, the repeat viewing is free,” Rothman stated. “Repeat viewing in movie theaters is not free.” This allowed fans to endlessly rewatch and recommend the film to friends, fueling a gradual growth curve that the short theatrical window simply doesn’t allow.
For anyone who hasn’t seen that particular graph…
A Massive Halo Effect for Sony Animation
Beyond viewership numbers, the cultural footprint of the film has been a massive boon for Sony’s reputation in the animation industry. Rothman proudly stated that the success has transformed their standing among creatives. “We are now, I’m very proud to say… the hottest animation shop in town,” he declared. “If you’re a young, cool animator who wants to break ground and do new stuff and don’t want to do the same old, same old stuff, you’re beating down Sony Pictures Animation’s doors.”
Strengthening the Netflix Partnership
Ultimately, Sony’s job in this specific deal was to deliver a hit to their streaming partner, and they delivered in a huge way. By handing Netflix a crown jewel, Sony kept their partner incredibly happy, which pays dividends elsewhere. “Our job is to deliver them hits. That’s what we’re supposed to do,” Rothman noted. “And I think they’re very happy because they’ve renewed a very nice deal for us,” referring to the highly lucrative Pay-1 streaming window deal that’s been in place in the US for the last few years and renewed globally beginning from 2027 that brings in billions for the studio.
No Looking Back
For Sony, the trade-off of skipping theaters was well worth the industry clout and the guaranteed streaming payout. While acknowledging that studio leadership requires tough calls, Rothman is entirely at peace with this one. “Trust me, in my job, hindsight is 20-20, and I regret a lot of the decisions,” he admitted. “Not that one.”
A sequel and other projects are expected for KPop Demon Hunters in the coming years, though it’s been noted recently that the reported 2029 release date may be a bit optimistic.
Would you have made the trip to theaters to see KPop Demon Hunters when it first came out?
