Netflix Inc.’s NFLX co-founder and former CEO Reed Hastings’ bold bid to rival Walt Disney Co. DIS in family-friendly animation may finally be paying off, thanks to its record-breaking original film, “KPop Demon Hunters.”
Aiming For Disney, Reaching For The Stars
Back in September 2020, Hastings told reporters, “We want to beat Disney in family animation,” reported CNBC on Thursday.
At the time, Disney’s decades-long dominance in animated films, from “Snow White” to Pixar hits like “Toy Story” and “Inside Out,” made that a lofty goal.
Now, Hastings — currently Netflix executive chairman — may be closer than ever to seeing that vision come to life.
Since its June 20 release, “KPop Demon Hunters,” a musical adventure about a world-famous K-pop group saving the world from demons, has become Netflix’s most-viewed animated film ever, racking up more than 184 million views, the report said.
Its popularity has spilled into music charts, with the soundtrack’s lead song, “Golden,” topping the Billboard Hot 100 and hitting No. 1 on the U.K. singles chart for the first time in 13 years for a K-pop track after PSY’s “Gangnam Style” in 2012.
See Also: Netflix Rides Global Growth Wave As Squid Game 3, Stranger Things 5 Boost Subscribers
Minimal Marketing, Unlike Squid Game 3, But Viral Success
Unlike heavily promoted Netflix series like Squid Game 3, the film’s marketing was minimal, relying mostly on social media buzz.
Bernie Cho, president of president of South Korean artist services agency DFSB Kollective, told the publication, “The movie played into the K-pop playbook of viral videos, of infectious memes, user-generated content. People basically promoted the movie because of its originality and its authenticity. No different than a K-pop boy band or a girl band.”
Fans have created countless YouTube shorts, dance challenges, and covers, amplifying the film’s reach worldwide.
Netflix Eyes A Long-Term Franchise
Experts see more than just streaming numbers in KPop Demon Hunters. Brandon Katz, director of insights at Greenlight Analytics, called it Netflix’s “first real, organic, mega hit animated franchise.”
The platform has already announced U.S. and U.K. sing-along events, launched 187 merchandise items — more than Squid Game 3’s 139 — and is reportedly exploring sequels, a short film and a stage musical.
Katz noted that the more emotionally invested audiences are in a franchise, the greater the likelihood they’ll spend money on it. Netflix now has a golden opportunity.
Netflix’s Growing Competitive Edge
The success of KPop Demon Hunters coincides with Netflix reporting $11.08 billion in second-quarter revenue, up 16% year-over-year.
The streaming giant credited subscriber growth, higher prices and rising advertising revenue for driving gains in revenue and operating margins. In total, members streamed 95 billion hours of content in the first half of the year.
Disney reported fiscal third-quarter adjusted earnings per share of $1.61, topping the consensus estimate of $1.47. Revenue rose 2% year over year to $23.65 billion, coming in just below analysts’ forecast of $23.72 billion. The company’s results were largely fueled by its Experiences segment.
The company also saw combined Disney+ and Hulu subscriptions reaching 183 million and operating income increasing 6% year-over-year.
Price Action: On Thursday, NFLX shares rose 2.17% in regular trading, while Disney slipped 0.30% during the same session, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings show that NFLX has been on a short-term downtrend but continues to post strong gains over the medium and long term. More performance insights are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Great Job Ananya Gairola & the Team @ Benzinga – Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals Source link for sharing this story.
