"K-POP Demon Hunter Girl Group" unexpectedly becomes "the most popular in history"; Netflix's first teenage super IP emerges—Is the next explosive toy on its way?
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Netflix is facing a happy dilemma.
This summer, "K-POP Demon Hunters" unexpectedly became the most popular animated musical film in Netflix history, topping the charts for over four months since its release, attracting more than 325 million views, with its original soundtrack still occupying the Billboard charts.
Nevertheless, retailers and toy manufacturers were not optimistic about this original animation before its release and did not make early preparations. As a result, the corresponding toy products will not be launched until the first or second quarter of next year, missing out on this year’s golden holiday sales season.
According to Adobe data, U.S. consumers alone are expected to spend more than $250 billion online in November and December, up 5.3% year-on-year.
Analysts believe that for this streaming company, the consumer goods business is still a small one; toys and apparel are regarded more as program marketing tools rather than sources of revenue. The real challenge is whether "K-POP Demon Hunters" can be turned into its first self-owned heavyweight children’s IP, which would generate long-term revenue far beyond Christmas toy sales.
A Collective Misjudgment by Retailers
Thanks to word-of-mouth, catchy music, and viral popularity online, this film about three singers stopping demons from taking over the world quickly became the most popular film in Netflix history.
However, even those involved in its production did not expect this level of success. Netflix chief marketing officer Marian Lee said:
It was a happy accident, a perfect marriage of many factors with an outstanding film.
Early test screenings for the film received a lukewarm response, and Netflix promoted the film to retailers at that time, providing ideas for future product designs and film details, but almost no one responded. After all, original works like Universal’s "Migration" and Pixar’s "Elemental" failed to resonate.
Moreover, Netflix has almost no track record of success in toys. Its most popular children’s IPs, such as "CoComelon" and "Gabby's Dollhouse," are produced and owned by third parties.
Before this, whenever toy companies bet on Netflix kids’ shows, the results were disappointing. Mattel once announced toys for the animated show "Karma's World" created by rapper Ludacris, but the show was canceled after just a year on air.
Emergency Remedial Actions
After the film became a hit, all kinds of companies began contacting Netflix proactively, especially those from East Asia, the birthplace of K-POP:
Nongshim launched themed ramen products.Samsung’s Everland in Gyeonggi-do introduced special themed areas and events.Messaging app KakaoTalk added character stickers.Chain bakery Paris Baguette launched related cakes and cookies.
Lee said:
We can't even answer all the incoming calls now.
Currently, there are very few official derivative products for consumers to buy at retailers or on Netflix’s online shop—mainly card games, wooden ornaments, phone stands, and apparel.
Toy manufacturing is even more challenging. Producers need to secure shelf space with Walmart, Target and other retailers more than a year in advance, and manufacturers like Mattel and Hasbro require even longer preparation times.
To speed up the process, the two largest toy manufacturers reached a rare agreement to share the master license and each sell toys in their area of expertise.
Mattel, focusing on Barbie dolls and similar products, will be responsible for dolls, figurines, and playsets from the film. Hasbro, utilizing its strength in plush toys, will handle that category. Tim Kilpin, president of Hasbro’s Toy, Licensing and Entertainment division, said:
This story has all the elements we need to build a long-term IP.
Children’s media consultant and former Disney executive Emily Horgan stated that Disney’s "Frozen" and "Cars" also encountered similar delays when they became super hits, initially unable to provide the full range of holiday gifts buyers wanted. She said:
Obviously, if everything had been planned earlier, the 2025 holiday product line would be much richer, but as long as Netflix and its partners don't mess up, fans will remain interested in the IP for months or even years to come. We have a chance to turn "K-POP Demon Hunters" into a heavyweight IP.
The Sequel Is Coming, and Netflix Is Going All Out to Maintain the IP’s Popularity
During the waiting period before toys hit the shelves, Netflix is actively taking measures to maintain the IP’s popularity.
Netflix initially invested only a moderate marketing budget in "K-POP Demon Hunters," but the company prepared a large amount of social media content for release on Instagram and TikTok to fuel viral spread, as well as partnership design plans with food and beauty companies.
Netflix is also working to keep up the hype. In August, the company brought the film to theaters for a weekend, inviting fans to sing along to hit songs, then repeated the event at Halloween. Netflix also partnered with seasonal retailer Spirit Halloween to launch themed costumes. According to media reports citing insiders, the company is exploring interim programs, including a possible short film.
But the biggest challenge—and potential reward—lies in producing a high-quality sequel. Animated films take several years to produce, and Netflix just reached an agreement with the director and Sony for a second movie. Fortunately, by the time the full-length sequel is released in 2029, toy makers and retailers will be ready.
Netflix has reshaped Hollywood in its own way over the past decade, but it still lags behind traditional studios in building evergreen IPs.
Disney, Universal, and Warner Bros. generate billions in annual revenue from theme parks and consumer products through multiple series including "Star Wars," "Harry Potter," and "Despicable Me."
To date, Netflix’s biggest IPs are series like "Bridgerton" and "Stranger Things," which are global hits but less heavily merchandised.
Right now, as children wait for "K-POP Demon Hunters" dolls, plush toys, and crochet sets, the true test is whether Netflix can turn this happy accident into its first fully-owned super children’s IP.
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