Netflix has made huge profits from the IP that Sony sold for $20 million. Behind "The Witcher: Blood Origin" lies a virtual idol market worth trillions.

Your next idol might not be a real person

We’re golden, we’re unstoppable……

If you've come across this lyric in the past few months, you must know that the entertainment industry might be on the verge of a major transformation.

A song called "Golden", along with the viral spread of the animated movie "K-Pop: Demon Hunters", has not only mesmerized hundreds of millions of viewers worldwide but also propelled the fictional girl group HUNTR/X in the movie to the top of real - world music charts.

△  "K-Pop: Demon Hunters" has made two virtual groups, HUNTR/X and Saja Boys, famous

Together with the male group Saja Boys, their rivals in the movie, HUNTR/X has created a storm on global music charts, even outshining top real - world idol groups like BTS and BLACKPINK.

△  HUNTR/X is now the most popular female K - Pop group on Spotify, surpassing BLACKPINK

While everyone is busy interpreting this cultural phenomenon, many might have overlooked one thing - there are many business secrets hidden behind this blockbuster.

When Sony Pictures sold "K-Pop: Demon Hunters" to Netflix, it made a net profit of about $20 million, but it might have missed out on a super - IP worth billions of dollars.

Netflix, which has struck gold, is actively discussing the production of a sequel with Sony. However, this might still be a traditional approach that could end up being a missed opportunity - why can't the fictional girl group HUNTR/X and male group Saja Boys in "K-Pop: Demon Hunters" step out of the screen and become real - world virtual idols?

This is a huge business that is expected to reach a scale of $1.8 trillion by 2033.

"K-Pop: Demon Hunters" is revealing the future form of the entertainment industry in an unprecedented way - a brand - new universe jointly constructed by IP, technology, fan economy, and virtual life.

For creators and investors, understanding "K-Pop: Demon Hunters" might be the key to unlocking wealth in the next decade.

Super Blockbuster: How Did an "Animated Movie" Conquer the Real World?

Just how "explosive" is "K-Pop: Demon Hunters"? Let the data speak.

Since its release in June, the movie has quickly become the most - watched English - language movie on Netflix ever, with the cumulative viewership exceeding a staggering 236 million times, easily surpassing the nearly four - year - old record held by "Red Notice" starring Dwayne Johnson.

△  The viewership of "K-Pop: Demon Hunters" on Netflix has exceeded the nearly four - year - old record of "Red Notice"

The movie's soundtrack has also made history. The two virtual groups in the movie - the girl group HUNTR/X and the male group Saja Boys - have, for the first time, sent four songs simultaneously into the top ten of the Billboard Hot 100.

△  Four songs from "K-Pop: Demon Hunters" have entered the top ten of the Billboard Hot 100

Among them, "Golden" by HUNTR/X has even topped the chart, stealing the show.

Netflix extremely rarely held a "karaoke version" theatrical preview for this movie. With only about 1,100 theaters (about one - third of the scale of a major movie release), it easily raked in about $19.2 million at the box office in one weekend, topping the North American box - office chart that week. Streaming content has successfully reversed - exported to traditional theaters.

△  Netflix held a "karaoke version" preview for this movie in over 1,000 theaters

Behind this "pop storm" is the precise and cross - border cultural integration strategy of "K-Pop: Demon Hunters".

The movie skillfully integrates the globally popular K - pop idol culture, the aesthetic style of Japanese anime, and the fantasy elements deeply rooted in East Asian traditions. It not only satisfies K - pop fans' curiosity about the details of the idol industry but also attracts a wider range of family audiences with universal themes of friendship, growth, and self - identity.

The movie's setting is very ingenious: the power of the girl group HUNTR/X comes from the love of their fans. The more fans they have, the stronger their power to fight demons. This is not only a plot setting but also a metaphor for the core logic of the modern entertainment industry - the participation and emotional investment of fans directly determine the vitality and commercial value of an IP.

As a Hollywood analyst put it, the potential of this work is comparable to that of Disney's "Frozen".

△  Some analysts compare "K-Pop: Demon Hunters" (left) to another "Frozen" (right)

"Frozen" is a huge business empire composed of movies, music, merchandise, stage shows, and theme - park experiences. Its IP derivative value far exceeds the movie's box - office revenue itself. The global box - office revenue of the two "Frozen" movies reached $2.72 billion, while its licensed consumer products have generated an astonishing revenue of over $10.5 billion.

The industry's comparison of "K-Pop: Demon Hunters" to "Frozen" means that a super - IP with the potential to create tens of billions of dollars in value has been born. But this time, it's not a traditional giant that has received this valuable gift, but a new streaming powerhouse.

△  The villain male group Saja Boys in the movie has gained popularity comparable to that of the protagonists thanks to their charm and catchy songs

The Deal of the Century: Sony's "Regret" and Netflix's "Dream"

While Netflix is celebrating this phenomenon - level IP, Sony Pictures, the movie's producer, must be having mixed feelings. The inside story of this deal is like a Hollywood drama of "unfulfilled wishes".

This "losing" deal was made in 2021. At that time, global theaters were in the depths of winter due to the pandemic, and streaming was the only safe haven. Without its own mainstream streaming platform, Sony played the role of a "supplier", selling its content to the platform that offered the highest price to maintain its cash flow.

According to the agreement, Netflix covered the production budget of about $100 million for "K-Pop: Demon Hunters" and additionally paid Sony $20 million. In return, Netflix gained control of almost all subsequent revenues, including sequels, derivatives, music, and merchandise licensing, while Sony's profit was locked at a relatively fixed figure.

△  Maggie Kang, the director of "K-Pop: Demon Hunters"

In the market environment at that time, the box - office risk of original animations in theaters was extremely high. Even Pixar's original work "Elemental" had a poor initial performance.

Sony's choice seemed like a safe and even wise business decision at the time. It ensured the stable operation of Sony's animation department and avoided layoffs.

After all, who could have predicted that an original animation， would explode with such great energy?

However, the success of "K-Pop: Demon Hunters" has mercilessly exposed the vulnerability of Sony's "supplier" strategy.

In an era where content and IP are king, only being responsible for "manufacturing ammunition" without having one's own "launch platform" and "ecosystem" means giving away the biggest dividends from IP value - added.

In contrast, vertically integrated giants like Disney have more flexible strategic depth. It can first test a work on its streaming platform (Disney+). If it receives a warm response, it can upgrade a streaming series to a major theatrical release like "Moana 2", maximizing the value of the IP.

△  Disney+ upgraded "Moana 2" from a streaming series to a major theatrical release

Now, although Sony retains the production rights for the sequels of "K-Pop: Demon Hunters", according to the existing agreement, these sequels will likely continue to be supplied directly to Netflix, failing to bring huge box - office returns from theaters.

For Netflix, this is undoubtedly a victory from a high - stakes gamble. Its movie department has obtained a "renewable" IP with infinite potential at a relatively low cost.

Unfortunately, Netflix currently seems to be still focusing on the old path of developing sequels in terms of how to make good use of this IP.

But in this era of the full rise of digital entertainment, virtual idols might be the real killer move to maximize the commercial interests of "K-Pop: Demon Hunters".

The Real Killer Move: From Movie Characters to Virtual Idols

The most core and subversive asset of "K-Pop: Demon Hunters" is not the movie itself, but the two virtual idol groups it has successfully incubated: HUNTR/X and Saja Boys.