Podcast Summary: "Why ‘KPop Demon Hunters’ Is a Fascinating Hollywood Experiment"

Podcast: The Town with Matthew Belloni
Host: Matt Belloni (The Ringer / Puck)
Guest: Lucas Shaw (Bloomberg)
Date: August 25, 2025

Episode Overview

In this episode, Matt Belloni is joined by Lucas Shaw to dissect the surprise box office phenomenon of Netflix's "KPop Demon Hunters"—an animated film that became available for home viewing on Netflix two months prior to its (limited) theatrical release, but still managed to become the number one movie in the box office on opening weekend. The conversation explores why Netflix chose this unique release strategy, what it signals for the future of streaming and theatrical windows, the missed opportunities for Sony (the original studio), and what the whole saga suggests about how Hollywood makes and markets cultural moments.

Key Discussion Points and Insights

1. Unpacking the Box Office Phenomenon

• Surprise Theatrical Success (01:06–04:41):
  • "The number one movie at the box office this weekend was a movie that has been available at home for two months on Netflix. It's KPop Demon Hunters, of course, with an estimated $18 to $20 million in ticket sales." (Matt, 01:20)
  • The movie played in only about 1700 theaters (not in AMC, the largest chain, due to ongoing disputes with Netflix over theatrical windows).
  • Box office figures were leaked, not officially released by Netflix, showing a secrecy at odds with their claims of transparency.

2. Netflix's Theatrical Play: Marketing, Not Money

• Strategic Motives (04:41–06:20):

  • Netflix did this not for revenue, but for “marketing and buzz” (Lucas, 05:24).
  • "Movies in theaters are considered a bigger deal and a cultural moment. The two things that [Ted Sarandos] says they don't need theaters for." (Matt, 05:28)
  • The sing-along theatrical event boosts franchise potential and community engagement—a playbook similar to Taylor Swift’s ERAS Tour.

• Missed Merchandising Opportunity (06:20–07:30):

  • Netflix tried to line up consumer product deals, but toy companies didn't see potential—now, with the movie’s surprise success, they're late to the party.
    • "Not because [Netflix] didn't want them. They went to toy companies a couple years ago. None of the toy companies saw the promise in the project." (Lucas, 06:51)

3. Does This Change Netflix’s View on Theaters?

• A One-Off Stunt (09:53–11:03):
  • "Does this change the Netflix stance on theaters at all?" (Matt, 09:53)
    • "Probably not." (Lucas, 10:02)
  • Netflix sees this as a unique situation, not a permanent shift. They're open to more 'stunt' releases, especially for event-scale movies, but remain resistant to wide theatrical windows.
  • "The vast majority of Netflix movies don't belong in a theater... but every quarter, a big event movie? Worth an experiment." (Lucas, 11:17)

4. Defining the "Biggest Movie of Summer"

• Debating Cultural Impact (10:32–10:58):
  • Debate over whether Netflix’s "Demon Hunters" can be called the 'movie of the summer' despite some labeling it a ‘TV movie’ due to its streaming-first distribution.
  • "The more I've thought about it, the more it feels sort of incontrovertible that K Pop Demon Hunters was the biggest movie of the summer." (Lucas, 10:45)

5. AMC and Theater Chain Dynamics

• Exclusivity and Leverage (13:16–15:16):
  • AMC refused to play the film because Netflix wouldn’t guarantee a traditional exclusive window.
  • "The problem for the theaters is that they don't have any leverage. Netflix doesn't need them." (Lucas, 14:09)
  • Duffer Brothers left Netflix in part due to this issue—Paramount offered them theatrical releases.

6. Could It Have Been a Theatrical Smash from the Start?

• Counterfactuals and Distribution Reality (17:09–20:10):
  • Matt and Lucas discuss whether KPop Demon Hunters could have had even bigger box office returns with a traditional, pre-Netflix theatrical release.
    • Matt: "I think that K Pop Demon Hunters had a chance to become a theatrical hit if Sony really nailed the marketing for it and leaned into the K Pop element..." (19:25)
    • Lucas: “Could have been. I just think that the odds of it are less, certainly less than 50%.” (20:01)
  • They note that original animation has lately struggled at the box office, with a few rare exceptions.

7. Sony’s Deal: A Case of Missed Value

• Who Profited? (20:10–22:36):
  • Sony sold the film to Netflix during the pandemic and will only make a flat $20 million, missing out on massive upside now.
    • "Sony...will only make $20 million on this movie." (Matt, 20:10)
    • "In hindsight, do you do this deal all over again? No, in hindsight. The benefit of hindsight, of course not." (Lucas, 21:36)
  • Netflix now controls the property and potential sequels for years to come.

8. Franchise Future and Sequel Potential

• The Sequel Question (22:36–24:03):
  • Will the momentum hold if a sequel arrives years later?
    • Lucas: "...the new movie wouldn't come for three or four years. So will there still be as much interest in it? I don't know." (22:39)
    • Matt: "Even if [the sequel is] okay... it's going to get to $500 million. That's why you do it." (23:48)
  • No clear precedent for streaming-first properties becoming theatrical megahits in second installments.

9. Netflix's Cultural Moment

• Perception Flex (25:02–25:37):
  • Netflix executives likely savor proving skeptics wrong about their ability to create cultural moments without theaters.
    • "We give them so much shit for not creating cultural moments, but they did." (Lucas, 25:02)
    • "He's gonna say, what a flex... We didn't need theaters." (Matt, 25:20/25:26)

Notable Quotes & Memorable Moments

• On Netflix’s Experiment:

  • "This thing became a sensation without theaters. It did not need theaters to become it." (Lucas, 06:20)

• On Cultural Moments:

  • "You put that movie in theaters, it becomes a cultural moment. Everybody is talking about it. And the Taylor Swift brand benefits from that. And that's what I think they're thinking about here for Demon Hunters." (Matt, 07:44)

• On Theaters’ Role:

  • "The vast majority of Netflix movies don't belong in a theater. If they tried to put them there, they would fail." (Lucas, 11:17)

• On Sony’s Deal:

  • "Tom Rothman, in hindsight, do you do this deal all over again? No, in hindsight. The benefit of hindsight. Of course not." (Lucas, 21:36)

Important Timestamps

• [01:20] — KPop Demon Hunters box office numbers and limited release explained
• [05:24] — Why did Netflix put the movie in theaters? (Marketing, not money)
• [06:46] — Toy company miscalculation on merchandising
• [09:53] — Will this change Netflix’s position on theatrical releases?
• [10:45] — KPop Demon Hunters as the "movie of the summer"
• [13:16] — AMC’s refusal to carry the film
• [14:09] — "The problem for the theaters is that they don't have any leverage."
• [19:25] — Could KPop Demon Hunters have succeeded as a wide-release theatrical?
• [20:10] — Sony’s flat deal with Netflix limits their upside
• [22:39] — Will the sequel still have audience passion years later?
• [25:02] — Netflix’s flex: creating a cultural moment without theaters

Takeaway

The episode provides a clear-eyed look at the shifting dynamics between streaming giants and traditional movie theaters, using "KPop Demon Hunters" as a case study. Netflix’s surprise box office move was more about brand, cultural cachet, and future franchise building than revenue. The discussion underscores the risks and unpredictable rewards of Hollywood dealmaking, the growing power of streaming-first franchises, and the still-evolving cultural meaning of a "movie event" in the era of hybrid distribution.

Fans of Hollywood business and industry strategy will find rich, candid insights that go beyond the trade headlines.