Netflix and Skydance Animation Are Calling It Quits, but Not Before Two More Big Releases

Streaming partnerships come and go, but few have shaped Netflix’s animation slate quite like the one it struck with Skydance Animation back in 2023. That deal brought subscribers everything from the body-swap adventure ‘Pookoo’ to the fantasy quest ‘Spellbound,’ and it turned the John Lasseter-led studio into one of Netflix’s most reliable animation partners in just a few short years.

That run of collaboration has paid off in a big way this year. ‘Swapped,’ Skydance Animation’s most recent release, became a certified phenomenon on the platform, and the momentum behind it made the studio’s continued partnership with Netflix feel like a safe bet for the foreseeable future.

Except that safe bet is now coming to an end. According to Deadline, Netflix and Paramount have mutually agreed to conclude their animated film agreement, officially closing the chapter on the Netflix-Skydance Animation partnership that began three years ago.

The good news for fans is that the split will not affect the projects already in motion. In a joint statement shared with Deadline, the companies said, “Netflix and Paramount have mutually agreed to conclude their animated film agreement. Both companies remain fully committed to the successful releases of Ray Gunn and the untitled Jack and the Beanstalk project on Netflix, and additionally will continue their longstanding content licensing relationship.”

‘Ray Gunn,’ from ‘The Incredibles’ director Brad Bird, stars Sam Rockwell, Scarlett Johansson, and Tom Waits, and follows a down-on-his-luck private detective navigating a futuristic world shared by humans and aliens. The film is set to premiere at the BFI London Film Festival on October 10 before arriving on Netflix on December 18.

Netflix and Skydance Animation have mutually agreed to end their multi-year partnership. While the deal brought us the global hit Swapped, the collaboration will conclude after two final upcoming films. The remaining titles, Brad Bird’s Ray Gunn and a new Jack and the Beanstalk project from director Rich Moore, are still set to debut on Netflix before Skydance transitions to a theatrical-first strategy with Paramount.

— What’s on Netflix (@whatonnetflix) September 14, 2026

Following that will be an untitled ‘Jack and the Beanstalk’ project directed by ‘Zootopia’ filmmaker Rich Moore, which remains on track to debut on the platform as well. Once that film releases, per Whats on Netflix’s report on the deal’s conclusion, Skydance Animation will fully shift away from streaming-first releases.

The split traces back to Skydance’s broader corporate shift following its merger with Paramount, which folded Skydance Animation under the Paramount banner. Rather than continuing to prioritize a streaming-first model with Netflix, the studio is now pivoting back toward traditional theatrical distribution.

Moving forward, Skydance Animation’s slate will be distributed theatrically through Paramount Pictures, with the possibility of Warner Bros. also playing a role depending on the outcome of an ongoing corporate merger and distribution discussion. Media Play News reported that the studio’s focus will now center on delivering feature films for the big screen rather than direct-to-streaming premieres.

Brad Bird's RAY GUNN, with sound by Ben Burtt and Skywalker Sound. Releasing December 18 on Netflix. pic.twitter.com/MGq0qrJBsq

— Skywalker Sound (@skywalkersound) September 9, 2026

Among the first titles expected once the theatrical pivot takes hold is ‘Cosmic Motors,’ a project directed by John Lasseter himself, signaling that the former Pixar chief plans to stay closely involved as Skydance charts its new course. Even as the animation output deal winds down, Netflix and Paramount have both stressed that their relationship isn’t disappearing entirely, pointing to a continued content licensing arrangement between the two companies.

That licensing relationship already extends well beyond animation. Paramount continues to supply Netflix with a steady stream of live-action series, including ‘Matlock,’ ‘The King of Queens,’ ‘Seal Team,’ ‘Watson,’ and ‘NCIS,’ suggesting the two companies still have plenty of reasons to keep working together even without new animated features on the horizon.

For now, animation fans have two more Skydance-Netflix collaborations to look forward to before the partnership officially closes out. Between Brad Bird’s genre-bending detective story and Rich Moore’s fresh spin on a fairy tale classic, the studio appears determined to end its Netflix era on a high note.

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