'Sony Remains Silent... Why After Creating Netflix's Biggest Hit "Kedeheon"? [The Kedeheon Phenomenon]'

Sony Quiet Despite Kedeheon’s Global Success
Netflix Takes All Profits from the IP Deal
Blockbuster Soundtrack and Sold-Out Events Highlight Phenomenal Demand
Sony’s Share Remains Modest Compared to Netflix’s Gains
Future Sequels and N

While "K-Pop Demon Hunters" (Kedeheon) is creating a global phenomenon, Sony Pictures Animation, which was responsible for its production, has remained quiet. This is because Netflix takes all business profits related to the intellectual property (IP).

Netflix 'K-Pop Demon Hunters' Still Cut

North American media outlets are predicting its scale to rival Disney's "Frozen." This is not surprising, as Kedeheon has become the second most-watched English-language film in Netflix history. Even in its eighth week after release, it continues to post high viewership numbers, making it highly likely to reach the top spot before the official 91-day tally is complete.

The soundtrack songs are also enjoying explosive popularity. Seven tracks entered the Spotify Global Top 50 simultaneously, and the main theme song "Golden" topped the Billboard Hot 100 chart. The "Sing Along" theatrical release event, which will be held for two days starting on the 23rd in the United States, Canada, the United Kingdom, and other countries, sold out as soon as ticket sales began. Due to high demand, additional theaters have been added, and the event will now take place in over 1,100 locations.

All of these profits go to Netflix. Locally, there are projections that, considering future sequels and character-related business, the total revenue could exceed $1 billion (approximately 1.3929 trillion KRW). In contrast, Sony's share is modest. By handing over the Kedeheon IP to Netflix, Sony received $120 million (about 167.1 billion KRW). Of this, around $100 million was used for production costs, so the profit is estimated to be about $20 million (about 27.8 billion KRW).

This structure stems from a contract signed with Netflix in 2021, during the COVID-19 pandemic, worth more than $1 billion. For five years, Sony agreed to provide not only theatrical releases but also content supplied directly to Netflix.

Netflix 'K-Pop Demon Hunters' Still Cut

At the time, Netflix was a welcome buyer for Sony, which did not have its own streaming service. With theaters closed, there was no way to expect revenue. Unlike now, licensing deals for titles such as Netflix's "The Mitchells vs. The Machines" (2021) and Apple TV+'s "Greyhound" (2020) were considered wise choices.

Of course, it is unclear whether Kedeheon would have achieved such success through a theatrical release alone. Since the pandemic, only sequels like "Inside Out 2" (2024), "Moana 2" (2024), and "Kung Fu Panda 4" (2024) have been box office hits among animated films. The only standalone success was "The Super Mario Bros. Movie" (2023). The consensus is that Netflix's recommendation algorithm, word of mouth, well-produced soundtrack, and the global influence of the K-pop fandom created a synergy, resulting in Netflix's first true animated blockbuster.

However, it cannot be concluded that Sony made a losing deal. Kedeheon is expected to become at least a trilogy, and there are even rumors of a live-action adaptation or a musical stage production. Sony retains the rights to produce sequels, leaving room to negotiate better terms for future projects. Its credibility in the market has already increased, further strengthening its presence as a content supplier in the streaming era.

Sony has not yet made any official statement regarding Kedeheon. There has also been no concrete announcement about a sequel. This may be due to ongoing negotiations involving more unconventional contract terms than before.