fbpx

This Change Could Totally Upend Netflix’s Animation Strategy

Photo from Dima Solomin via Unsplash

This Change Could Totally Upend Netflix’s Animation Strategy

By Movieguide® Contributor

The looming merger between Skydance Media and Paramount has the potential to upend Netflix’s long-term content strategy if it causes the companies’ animation branches to overhaul their work.

When the Skydance-Paramount merger was first announced, one of the areas highlighted was the strength of the animation that could be achieved if the two companies joined forces. Skydance holds a strong animation branch, while Paramount is the parent to one of the industry’s most recognizable brands: Nickelodeon.

“From a theatrical perspective, animation is so important and Paramount is very strong with Nickelodeon. We’re immediately going to be a leader in animation,” said former NBCUniversal CEO Jeff Shell, who is expected to become the president of Paramount following the merger.

One hiccup in this plan, however, comes from an outstanding deal between Netflix and Skydance. In 2023, Skydance signed a deal with Netflix that would eventually result in the company delivering over half of the streamer’s animated content. The pair currently have four productions in the work.

The deal is incredibly important for Netflix, as the streamer finds incredible success from animated content. Its “top 10 movies” list last year was dominated by animated projects like LEO, Teddy Bear Award® winner THE SUPER MARIO BROS. MOVIE, BOSS BABY and PAW PATROL: THE MOVIE. For this reason, it has turned its attention to the medium, with plans to continue developing new animated content, largely through Skydance Animation.

Skydance, however, may choose to turn back on the deal if, following its acquisition of Paramount, it decides to put its animation chops towards Paramount+ instead. Nonetheless, publicly the company has stated its merger with Paramount will not affect its partnership with Netflix.

“We have a phenomenal relationship with Netflix that we’re incredibly grateful for,” said “New Paramount” CEO Jeff Ellison in early July. “[It’s] a multi-billion dollar pact to where we co-own everything we create in partnership with them… Our relationship with Netflix and Skydance Animation will significantly boost our family entertainment business and is incredibly additive to all Paramount shareholders.”

Whether the future holds a different path, however, remains to be unseen.

Skydance and Netflix’s first co-produced animated project, SPELLBOUND, is set to release on Nov. 22.

Movieguide® previously reported on the Skydance-Paramount merger:

Skydance Media’s acquisition of Paramount was approved on Sunday; the companies have since revealed their vision for a shared future.

 The largest immediate impact that would come from the merger would be a $1.5 billion cash infusion to help the struggling studio stabilize, allowing top talent and creatives to feel comfortable signing onto new projects from the studio. Luring these high-quality individuals sits at the center of the company’s plan for the future.

“[Paramount] will be a premier, creative-first destination for storytellers, dedicated to top-quality content and will be positioned to improve profitability, foster stability and independence for creators, and enable more investment in growth areas,” the companies said.

While building on the longstanding legacy of Paramount, Skydance will look to incorporate its specialty as well, helping the company overhaul its technology to become an industry leader in the space.


Watch THE VELVETEEN RABBIT
Quality: - Content: +3
Watch ALIENS OF THE DEEP
Quality: - Content: +2