Netflix’s hit movie KPop Demon Hunters will be turned into toys, clothing and games

The world’s largest television streaming service plans to turn a demon-hunting girl band into a global franchise.

Netflix told investors this morning that KPop Demon Hunters, the most successful movie in the company’s history, will be turned into toys, games, clothing, live performances, books or magazines, cosmetics, food and drinks.

As part of the plan Mattel, the company behind Barbie, has been appointed to design of a range of dolls based on characters from the 100-minute-long movie, which has been watched 325 million times and introduced Korea’s brand of teenage-orientated pop music to pre-pubescents around the world.

Netflix’s ability to repeatedly make hit TV shows and movies helps explain how the company — which started as a DVD mail-order rental business — continues to rapidly expand despite already being worth $770 billion.

KPop Demon Hunters was “another example of our ability to create large breakout hits and for our films to be part of the cultural conversation and zeitgeist,” Netflix said in its third-quarter profit statement, which was published overnight in the US.

The Gizmodo website compared Netflix’s merchandise strategy with the Star Wars commercial juggernaut. But the deal with Mattel and board-games giant Hasbro were put together so quickly their merchandise will not be available in time for Christmas.

Top talent

Sales rose 17 per cent in the three months ended September 30 compared with the same quarter a year earlier. The Asia-Pacific region, which includes Australia, posted the equal-fastest sales growth, of 20 per cent. Global earnings rose 8 per cent to $US2.5 billion ($3.9 billion).

As streaming services become more popular around the world, Netflix has stayed ahead of competitors through low prices and a large library.

At the same time, the company invests heavily in shows and movies, figuring that paying for top directors, producers and actors will deliver hits that attract new viewers and keep existing viewers happy.

For KPop Demon Hunters, its hired two top music producers, Teddy Park and Lindgren, who helped create songs so memorable that seven made the Billboard Hot 100.

Netflix released a version of the movie designed to be sung along to in 1700 US cinemas two months ago.

Other hits

Other popular Netflix programs included a new series of the children’s series Wednesday, which was watched 114 million times, and the documentary series Amy Bradley Is Missing and UK thriller Hostage, both of which were watched 35 million times.

Australian film reviewer Jim Schembri singled out Netflix’s documentaries, including The Tinder Swindler, which told the story of Israeli conman Simon Leviev, who used dating app to find women and manipulate them into giving him money.

“The quality of their documentary offerings is way beyond the output of all the other streaming services,” he said. “That’s the reason for their success: they are giving consumers what they want.”

Despite fierce competition from Disney, Amazon and other streaming services, Netflix has extended its lead in the US, the most-competitive TV market. Netflix’s market share rose from 7.5 per cent at the end of 2022 to 8.6 per cent last quarter.

Its shares have risen 40 per cent this year, although dipped after the latest profit result because of an unexpected tax bill in Brazil.

In the US, Australia and elsewhere, free-to-air television networks remain more popular than subscription services. Three years ago Netflix began showing showing ads as part of its cheapest plan.

The approach has been adopted in 12 countries, including Australia, and ad revenue is projected to double this year.

One of the company’s most effective tools is an algorithm that predicts what viewers like. The feature is important because Netflix has tens of thousands of shows — far too many for any one to choose from.

An artificial intelligence feature is being tested that searches for shows based on spoken requests using regular language. An example might be: “Find me a funny Australian movie with good reviews that features Bryan Brown.”