Netflix and Paramount end Skydance Animation distribution deal

Netflix and Paramount have mutually agreed to end their three-year animated film distribution partnership. The decision marks a strategic shift for Skydance Animation, which is now part of Paramount following a merger. The studio plans to pivot away from streaming-first releases to focus on traditional theatrical distribution through Paramount Pictures.

Despite the end of the broader agreement, both companies confirmed they remain committed to releasing two specific projects on Netflix: Brad Bird’s ‘Ray Gunn’ and an untitled ‘Jack and the Beanstalk’ project directed by Rich Moore. Additionally, the companies will continue their existing long-standing content licensing relationship.

Future Skydance Animation projects, such as John Lasseter’s ‘Cosmic Motors’, will now receive theatrical releases via Paramount instead of streaming debuts. Meanwhile, Netflix is continuing to expand its internal animation capabilities with its own upcoming slate of original content.