"K-POP Demon Hunter Girl Group" unexpectedly achieves "the hottest in history," Netflix's first teenage super IP appears, is the next explosive toy on the way?

Netflix is facing a happy dilemma.

This summer, "K-POP Monster Hunter" unexpectedly became the most popular animated musical film in Netflix's history, dominating the charts for over four months since its release and attracting over 325 million views, with its soundtrack still occupying the Billboard charts.

Despite this, retailers and toy manufacturers were not optimistic about this original animation before its release and made almost no advance preparations. As a result, the associated toy products will not be available until the first or second quarter of next year, missing the golden sales period of this year's Christmas shopping season.

According to Adobe data, online spending by U.S. consumers in November and December is expected to exceed $250 billion, a year-on-year increase of 5.3%.

Analysts believe that for this streaming company, the consumer goods business is still a small venture, with toys and clothing seen more as marketing tools for the shows rather than sources of revenue. The real challenge lies in whether "K-POP Monster Hunter" can be turned into its first major children's IP with copyright, which would bring long-term benefits far exceeding Christmas toy sales.

Retailers' Collective Misjudgment

With word-of-mouth promotion, catchy music, and viral online popularity, this film about three singers preventing demons from taking over the Earth quickly topped Netflix's list of most popular films.

However, the production team did not anticipate such a huge success. Netflix's Chief Marketing Officer Marian Lee stated:

This is a happy accident, a perfect combination of many factors and an outstanding film.

Early screenings of the film received lukewarm responses, and Netflix had promoted the film to retailers at that time, providing design ideas for future products and details about the film, but there was almost no response. After all, Universal's "Migration" and Pixar's "Elemental" had failed to resonate.

Moreover, Netflix has almost no successful track record in the toy sector. The company's most popular children's IPs, such as "CoComelon" and "Gabby's Dollhouse," are produced and owned by third parties.

Previously, when toy companies bet on Netflix children's series, the results were disappointing. Mattel had announced the production of toys for the animated series "Karma's World," created for rapper Ludacris, but the show was canceled after just one year on air.

Urgent Remedial Measures

After the film's success, various companies began to actively contact Netflix, especially those from East Asia, the birthplace of K-POP:

• Nongshim launched themed ramen products.
• Everland, a subsidiary of Samsung, introduced special themed areas and activities in Gyeonggi-do.
• KakaoTalk, a messaging app, added character stickers.
• Paris Baguette, a bakery chain, also launched related cakes and cookies.

Lee said:

We are now overwhelmed with incoming calls Currently, consumers can find very few official merchandise products in retail stores or the Netflix online store, mainly consisting of card games, wooden decorations, phone stands, and clothing.

The difficulty of toy manufacturing is higher. Producers need to secure shelf space with retailers like Walmart and Target more than a year in advance, and manufacturers like Mattel and Hasbro require even longer preparation time.

To expedite the process, these two largest toy manufacturers have reached a rare agreement to share the main licensing rights and produce and sell toys in their respective areas of expertise.

Mattel focuses on products like Barbie dolls and will be responsible for dolls, figurines, and toy sets related to the film. Hasbro, leveraging its expertise in plush toys, will handle that category. Tim Kilpin, President of Hasbro's Toys, Licensing, and Entertainment division, stated:

This story has all the elements we need to build a long-term IP.

Children's media consultant and former Disney executive Emily Horgan noted that Disney's "Frozen" and "Cars" also faced similar delays when they became super hits, initially unable to provide buyers with the full set of holiday gifts they wanted. She said:

Clearly, if everything is planned in advance, the 2025 Christmas product line could be richer, but as long as Netflix and its partners don't mess it up, fans will remain interested in the IP for months or even years to come. We have the opportunity to turn "K-POP Witch Hunter" into a heavyweight IP.

Sequels are on the way, Netflix is working hard to maintain IP popularity

During the waiting period for the full launch of toys, Netflix is actively taking measures to maintain the IP's popularity.

Initially, Netflix only invested a moderate marketing budget for "K-POP Witch Hunter," but the company has prepared a large amount of social media content to be released on Instagram and TikTok to boost viral spread and has designed collaboration plans with food companies and beauty products.

Netflix is also working hard to maintain the heat. The company brought the film to theaters for a weekend in August, inviting fans to sing along to popular songs, and repeated this during Halloween. Netflix also collaborated with seasonal retailer Spirit Halloween to launch costumes. According to media reports citing informed sources, the company is exploring transitional programs, including possibly producing short films.

But the biggest challenge and potential reward lie in producing high-quality sequels. Animated films require years of production, and Netflix has just finalized an agreement with the director and Sony for the second film. Fortunately, when the full-length sequel is released in 2029, toy manufacturers and retailers will be ready.

Over the past decade, Netflix has reshaped Hollywood in its own way, but it still lags behind traditional studios in creating enduring IP.

Disney, Universal, and Warner Bros. generate billions of dollars in annual revenue from theme parks and consumer products through multiple franchises like "Star Wars," "Harry Potter," and "Despicable Me."

Netflix's largest IP to date includes series like "Bridgerton" and "Stranger Things," which, while globally popular, have a lower degree of commercialization. At present, while children are waiting for the dolls, plush toys, and crochet sets from "K-POP Hunter Girl Group," the real test is whether Netflix can turn this unexpected surprise into its first fully owned children's super IP.