Netflix Inc (NASDAQ:NFLX) stock trended on Friday, with distribution and licensing partner Sony Group (NYSE:SONY) Sony Pictures expressing solidarity with the streaming giant.
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Sony Pictures Entertainment CEO Ravi Ahuja highlighted the studio's alignment with Netflix while reflecting on the breakout success of KPop Demon Hunters. Speaking at Bank of America's Media, Communications & Entertainment Conference, Ahuja said Sony sold the animated musical's distribution rights to Netflix because "it made sense," noting the streamer fully covered production costs and added a profit premium, Variety reported on Thursday.
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The film became Netflix's most-streamed title, with 236 million views, before grossing $19 million in its theatrical sing-along debut.
Ahuja credited Netflix's platform for generating buzz and sustaining momentum, adding the movie was "in the right home."
He emphasized that Sony's goal is to create great content and place it where it thrives, stressing solidarity with Netflix's success: "One great thing about being independent is we're happy when our clients do well. So they did well, right?"
Netflix stock gained nearly 40% year-to-date.
Netflix’s film strategy with KPop Demon Hunters helped it score its first No. 1 at the box office despite the movie already being available on its platform.
The two-day theatrical run, paired with sing-along screenings, merchandise and a chart-topping soundtrack, pulled in $18 million and cemented the film as Netflix's second-most-watched title ever.
Analysts supported the move as part of the streaming giant’s broader strategy that blends content, live sports and new revenue streams.
Wedbush's Alicia Reese highlighted Netflix's "shockingly strong" retention despite price hikes, crediting the ad tier, strong global content and new ventures like sports rights and retail experiences for driving growth and keeping engagement.
NFLX Price Action: NFLX stock is trading lower by 1.19% to $1,242.56 at publication on Friday.
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