Netflix cashes in as ‘KPop Demon Hunters’ aims to win holiday season

The “KPop Demon Hunters” show turned out to be a smashing success, effectively rewiring Netflix’s (NFLX) scoreboard.

For perspective, in the first 91 days, the animated musical notched an eye-popping 325 million views, making it the most-watched film in Netflix history, dethroning “Red Notice.”

Those eyeballs helped power a sturdy quarter, spearheaded by another strong top-line showing.

However, a tax hit clipped net income, souring investor sentiment in the process. That bottom-line quibble, though, was enough to drive Netflix stock lower as investors recalibrated near-term expectations.

Nevertheless, Netflix’s management casts “KPop Demon Hunters” as a template going forward, to launch big on streaming, use eventized theatrical moments to deepen fandom, and then extend the world off-platform.

In doing so, Netflix just made a massive new move to translate that on-platform fever into physical-world demand, the kind that shows up in preorders and planograms.

It seems “KPop Demon Hunters” won’t just lift a quarter, but will sketch the new Netflix playbook for turning a streaming hit into a multi-channel business.

Netflix is aiming to turn its biggest animated success into a toy-store takeover.

The streaming giant just inked massive deals with Hasbro and Mattel to produce toys based on “KPop Demon Hunters,” becoming a global entertainment phenomenon.

The movie danced onto Netflix screens in June, becoming the most-watched film in its rich history, and it’s now taking the next step, extending its hit franchise into the toy aisle.

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Under the new licensing deal, Mattel will roll out the dolls, accessories, and playsets, while Hasbro will handle plush toys, role-playing items, and board games.

Preorders for Mattel’s pack of three dolls — representing the animated trio of Rumi, Mira, and Zoey from the fictional K-pop group HUNTR/X — have already opened. Hasbro’s first product based on the hit series is a themed Monopoly game that will arrive in stores by spring 2026.

Moreover, on the Q3 earnings call, Netflix Co-CEO Greg Peters hailed the film as a  “punctuated value spike,” becoming a case study in how the platform’s “build the core, then extend” strategy transforms content into franchises.

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His takeaway is that “KPop Demon Hunters” serves as a proof point, demonstrating that massive, repeatable cultural moments can drive ads, licensing, and viewer retention long after the initial release.

Co-CEO Ted Sarandos took it a step further, describing the Hasbro-Mattel pact as “a rare, maybe unprecedented partnership” that helps meet the incredible demand for off-screen touchpoints.

Additionally, he frames the film as a blueprint for Netflix’s new franchise engine, where its animation and streaming-first approach, followed by selective theatrical releases, is complemented by consumer products.

Netflix’s biggest hit yet: “KPop Demon Hunters” surpassed 325 million streams, making it the most-watched film in Netflix history.

Toy partnerships expand the franchise: Netflix signed Hasbro and Mattel in co-mastering toy licensees, with products set to hit the shelves by spring 2026.

New playbook for growth: Executives feel the film proves Netflix’s powerful strategy in turning hits into global IP engines fueling ads, merch, and engagement.

Netflix’s Q3 results, though, came in mostly mixed.

The entertainment giant posted a Q3 GAAP EPS of $5.87 (missing by $1.10) on sales of $11.51 billion (17.2% higher on a year-over-year basis, in line with estimates). The miss reflects below-the-line items, while sales held firm against Wall Street models.

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Guidance steadied the tape.

For the full year, Netflix expects sales of $45.1 billion (compared to the. $45.03 billion consensus), implying 16% growth. That’s effectively in line with previous commentary, which calls for 15% to 16% expansion.

Moreover, the company trimmed its 2025 operating margin target to 29% from 30% previously, reflecting investment cadence and FX.

As we look ahead, Netflix’s Q4 guidance comes in a shade better than the Street.

Sales are expected to be at  $11.96 billion compared to the $11.90 billion consensus, along with an adjusted EPS of $5.45 versus $5.42. Taken together, the guidance points to stable demand and a measured margin rebuild into year end.

The obvious takeaway is that double-digit sales growth can be sustained at scale, backed by superb operating discipline intact, as the margin trajectory moderated. Hence, Netflix’s Q3 showing keeps it on the mid-teens growth path while balancing reinvestment and currency headwinds.

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This story was originally reported by TheStreet on Oct 22, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.