If a Netflix film tops the domestic box office two months after it premiered on streaming, will Netflix care?
That’s the most prescient question one has to ask concerning the news of the KPop Demon Hunters (2025) sing-along, being the number-one film at the Domestic Box Office, opening with $19 million. It’s presumed, due to Netflix’s stance of never reporting box office numbers for any film they give a theatrical release, that $17 million is from exhibition sources and rival studios.
Whether Netflix confirms the box office number, it throws this box office weekend up in the air as to whether it matters for the behemoth tech giant that their most-watched, popular film of all time, galvanized fans and newcomers to attend a two-day engagement (without the participation of AMC theaters) fan event to catapult it by singing their hearts out.
KPop Demon Hunters has accomplished what numerous acclaimed Filmmakers, such as Alfonso Cuarón, Martin Scorsese, Jane Campion, Alejandro G. Inarritu, Bradley Cooper, and The Russo Brothers, have tried and failed—having their Netflix original films obtain a wide theatrical release. Rian Johnson almost succeeded with his Glass Onion (2022), which secured a week-long engagement in 600 AMC theaters in November, before its December streaming debut. This news also comes in the shadow of Greta Gerwig securing an IMAX theatrical exhibition for her upcoming Narnia film, potentially the biggest investment on Netflix’s part to exhibit an original film before heading straight to the platform.
The animated phenomenon, which premiered on June 20, has not only climbed Netflix’s internal charts but its album has achieved its own one-of-a-kind success, as the single “Golden” climbed to number one on Billboard’s Hot 100 charts. Despite the lack of marketing, the Netflix original developed organic growth and word-of-mouth interest, as it gained new fans and exposure across social media. All to think, this was a film that was developed internally at Sony Animation before being sold off to Netflix. (Someone at Sony is losing sleep over this fumble.)
Indeed, the prospects of theatrical exhibition are upside-down when it comes to Netflix’s overall entertainment strategy. This comes four months after co-CEO Ted Sarandos remarked that movie theaters are an “outdated concept,” after proposing that consumers prefer watching movies at home amidst dwindling box office totals. It was a real watershed moment, one that signaled how Sarandos undervalues the intrinsic value that theatrical exhibition adds for films that premiere in theaters over films that skip movie theaters.
The last two months of KPop Demon Hunters craze certainly go against that line of thinking, and there’s no doubt Sarandos feels all the more vindicated in his anti-theatrical position. As KPop skipped the traditional model of distribution by going straight to Netflix, the instant access and re-watchability cemented KPop as the global event, a notion that evaded the folks at Sony; otherwise, they wouldn’t have sold it off to the streaming giant.
The pillar of never embracing theatrical exhibition remains the last remnant of the Netflix old guard. Netflix has already undercut their initial values by cracking down on users sharing passwords and never having ads in their subscription tiers. (Years after they had explicitly stated they wouldn’t allow ads or crack down on password sharing.) These earlier tenets of Netflix were upended after their Stock plunge of 2022. The only remaining core idea is skipping wide theatrical distribution, aiming directly at the consumer. In Netflix’s eyes, they serve their subscribers first, above theater chains, as stated by their Head of Original Content, Bella Bejaria, “We’re a subscription business, and our members love movies, and our members want to watch great movies at home in their living rooms.”
The box office success of KPop Demon Hunters will not change Ted Sarandos regarding theatrical exhibition, not just because there’s no data or reason to justify it. It goes against the business model of Netflix. The streaming service serves its subscribers. Everyone else is non-essential, as the streaming giant is projected to exceed billions in profit by the end of the year.
While fans of the film and cinephiles championing the movie theater experience will feel emboldened by this weekend’s results, it will only push Netflix to reinforce its ideological belief that streaming is the future, not movie theaters. This is not a company desperate for cash, as the billions they make squashes any box office grosses; this is a corporation philosophically committed to making sure their users don’t prioritize going to the movie theaters over staying home. This is not a matter of losing or gaining money—it’s proving to the movie industry that it needs Netflix more than Netflix needs it. “We’re saving Hollywood.” It’s a classic case of an unstoppable force meeting an immovable object—who will budge in this holy war of streaming and movie theaters? Only time will tell.
Movie theaters have always been an inconvenience for Netflix, whether it’s the Academy requirements for their Oscar contenders to have a limited qualifying release or filmmakers adamantly forcing their films to receive some modicum of a theatrical window, Netflix has never believed in the theatrical experiment.
Yet, the Kpop Demon Hunter frenzy comes days after the Duffer Brothers, creators of the biggest show in Netflix’s history, Stranger Things (2016-2025), signed a four-year exclusive contract at Paramount once their tenure at Netflix is finished. The main point of contention? Their desire to make films with a guaranteed wide theatrical exhibition. Despite the endless money pit of Netflix’s wallet and unbridled creative freedom, the one aspect they can never claim ownership of is promising movie theaters to highly in-demand artists.
Last November, despite an exorbitant offer to acquire the Margot Robbie-led Wuthering Heights adaptation, Netflix lost that acquisition—the main reason? Robbie and filmmaker Emerald Fennell prioritized a wide theatrical release and a full marketing campaign, and a traditional studio (Warner Bros. Discovery) could easily cater to the desires of investing in a wide theatrical window.
There is a sea change happening within the industry. Artists are rejecting the lucrative paydays by taking a firm position to promote the theatrical experience. In his infinite pride, Sarandos is willing to let deals go by and competitors scoop up artists. It’s far removed from the economics of business and drives at the heart of a self-convinced tech mogul insisting he’s right.
It’s hard to determine if Sarandos simply doesn’t want to acknowledge he is wrong, and that his anti-theatrical stance will age like bad milk, or if this is something deeply rooted in not giving an inch to the competition of streaming. It’s even less clear if KPop was given a traditional rollout, would it have become the same cultural phenomenon it is now?
One thing is certain: for as much money Netflix throws at films and talent, the one thing they can never buy is cultural cache. KPop Demon Hunters is a juggernaut because it resonated with millions of people due to splendid animation and insanely catchy, emotional songs revolving around a compelling narrative.
You don’t become this big simply because you’re on Netflix; it certainly helps to be available in 190 countries, where kids and adults can catch KPop Demon fever instantaneously and be socially engaged in a global shared experience. Unsurprisingly, movie theaters have thrived for decades on providing the same communal experience of strangers watching movies together.
Who could’ve thought an animated film about K-pop stars fighting demons would bring Netflix and theaters together for one weekend? But until Ted Sarandos changes his tune and opens his heart for Netflix films to cultivate an audience through the big screen, this will be a contentious relationship between Netflix and exhibitors with no end in sight.
Analysis Courtesy of Amritpal Rai
Feature Image Credit to Netflix
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