Paramount, Netflix End Skydance Animation Deal; Future Films Will Receive Theatrical Releases

Paramount and Netflix are ending the distribution agreement that made the streamer the exclusive home of Skydance Animation features for the past three years.

Under the terms of the cancellation, the two companies will complete the distribution of the remaining two films in their shared pipeline, Brad Bird’s Ray Gunn and Rich Moore’s untitled Jack and the Beanstalk project, before going their separate ways.

According to Deadline, future Skydance Animation films will be released theatrically through Paramount Pictures. Distribution could eventually involve Warner Bros. as well, assuming Paramount completes its acquisition of Warner Bros. Discovery.

Netflix and Paramount said in a joint statement:

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.

The arrangement began in 2023, when Skydance Animation left Apple and signed a multi-year deal to develop and produce animated films for Netflix. The partnership produced Spellbound, which failed to make an impact upon release, and this year’s Swapped, a mega-hit that stands as one of Netflix’s most successful animated original films ever. Brid’s Ray Gunn will debut on the platform on December 18. Moore’s film will follow on an unannounced date.

An end to their deal is hardly surprising after Skydance merged with Paramount last year, which then gazumped Netflix in the 11th hour as the streamer attempted to acquire significant portions of Warner Bros. Discovery. Paramount now owned a major animation producer whose movies were being delivered to a rival streaming platform and without the buzz that comes from a theatrical release.

Nearing the end of a tumultuous, decades-long fight for survival, Ray Gunn seems to have been caught in the middle. Netflix passed over Bird’s film for a major holiday IMAX release this year, giving the slot to David Fincher’s upcoming Once Upon a Time in Hollywood sequel. The decision came despite strong audience interest in Netflix animation and reports that Bird’s camp hoped the filmmaker’s long-gestating sci-fi noir would receive meaningful theatrical support.

The split now clears the way for Skydance Animation to return to theaters after years of streaming-first releases. Its post-Netflix slate includes Cosmic Motors, which will mark John Lasseter’s return to feature directing and will be co-directed by Louie del Carmen. Other projects in development include an untitled film from Big Hero 6 director Don Hall and a closely guarded project reportedly being developed under the working title Jaguar.