How a $5 million fix turned Paramount Pictures' 'Sonic' into a billion-dollar franchise

Core Insights - The Sonic the Hedgehog film franchise faced significant backlash in 2019 due to an unfavorable character design, leading to a redesign and a delayed release, which ultimately resulted in substantial box office success [2][4][10] Company Strategy - Paramount Pictures made a pivotal decision to redesign Sonic after the initial trailer received 90% negative feedback, which cost around $5 million but led to a franchise that has generated nearly$1.2 billion globally [4][5] - The studio's strategy involved engaging with fans and incorporating their feedback into the character development and marketing, which helped to build a loyal audience [10][14] Financial Performance - The first Sonic film opened to $58 million and grossed$302 million globally, while subsequent films saw increased earnings, with "Sonic the Hedgehog 2" earning $403 million and "Sonic the Hedgehog 3" reaching$485 million worldwide [10][11] - The franchise's success has transformed Sonic from a $70 million licensing business to generating over$1 billion in annual retail revenue [13] Future Developments - Paramount is planning a fourth installment of the Sonic franchise set to debut in 2027, alongside a "Knuckles" series for Paramount+, indicating a strategy to expand the franchise across multiple platforms [4][11][12] - The filmmaking team is committed to gradually introducing new characters to ensure they are well-developed and resonate with audiences [15][16]