Netflix Cuts Paramount Deal, Still Streams Ray Gunn & Jack

Paramount Pictures and Netflix have announced that their long‑running animated film partnership will conclude, effective immediately. The decision follows a pre‑existing deal signed in 2023 between Netflix and Skydance Animation, a label that became part of Paramount after the two companies merged.

Both studios have clarified that they will keep moving forward with several high‑profile projects slated for Netflix distribution.

In a joint statement issued by representatives from both companies, the partners 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.

We are proud of our collaboration to date and look forward to bringing these upcoming films to audiences around the world.” The statement confirms that the partnership’s termination does not affect the scheduled releases of Ray Gunn, directed by Brad Bird, nor Rich Moore’s upcoming Jack and the Beanstalk.

The move comes at a time when Netflix Animation has been expanding its in‑house production capabilities. The studio’s first fully internal feature, *Steps*, is set to debut in November.

Meanwhile, Skydance Animation—now a stand‑alone label within Paramount Pictures—has already delivered some of the platform’s most‑watched titles, including *Swapped*, which earned 144.9 million global views.

The continued collaboration on these releases underscores that the end of the formal agreement will not hinder the studios’ shared creative ambitions.

## Background & Context

Skydance Animation launched its first feature film, Peggy Holmes’ *Luck*, in 2022 through a partnership with Apple Original Films. The studio has since added *Spellbound*—to arrive on Netflix in 2024 under director Vicky Jenson—to its slate.

In addition to feature films, Skydance’s portfolio features the Emmy‑winning series *Wondla* and the short film *Blush*, both produced for Apple TV. Paramount plans a theatrical release of Skydance’s *Cosmic Motors*, directed by John Lasseter and co‑directed by Louie Del Carmen.

Under the 2023 agreement, Netflix was set to receive exclusive streaming rights to Skydance Animation’s output, a deal that was reshaped when Paramount acquired Skydance.

Despite the corporate realignment, the studios maintained a joint venture structure that allowed Netflix to showcase high‑quality animated content without the need for separate licensing negotiations.

## Upcoming Projects and Legacy

The two studios remain committed to delivering *Ray Gunn* and Rich Moore’s untitled Jack and the Beanstalk project on Netflix. These titles are positioned to compete in the upcoming awards season, with *Ray Gunn* already generating buzz among critics.

Netflix’s animated division, led by Chairman Dan Lin and Head Hannah Minghella, has a history of producing box‑office successes such as *The Sea Beast*, *Leo*, and the Oscar‑winning *Pinocchio*.

The studio’s most‑watched film, *KPop Demon Hunters*, achieved 325.1 million global views and became the first Netflix movie to top the weekend box office with $19 million in late August 2025.

Skydance Animation’s impact on Netflix’s library is evident in the popularity of *Swapped*. The platform continues to license a range of Paramount series, including *Matlock*, *The King of Queens*, *SEAL Team*, *Watson*, and *NCIS*, ensuring a steady stream of content across genres.

## Continuing Partnerships and Future Slate

Beyond the termination of the animated film agreement, both companies have pledged to maintain their longstanding content licensing relationship. Paramount will continue to provide Netflix with a catalog of series and films, while Netflix will keep releasing Skydance Animation’s upcoming titles.

The joint commitment also covers future projects such as *Charlie vs. the Chocolate Factory*, Guillermo del Toro’s *The Buried Giant*, an original Ghostbusters feature, and sequels to *KPop Demon Hunters* and *Leo*.

Notably, Adam Sandler’s involvement in the sequel to *Leo* set a record for an animated debut on Netflix, with 34.6 million views.

This strategic realignment allows each studio to focus on its core strengths: Paramount’s theatrical distribution network and Netflix’s expansive streaming platform.

The continued collaboration on flagship projects signals that the end of the formal agreement will not derail the studios’ shared creative vision, but rather refocus resources toward high‑impact releases.

The partnership’s conclusion marks a new chapter in the evolving landscape of animated content distribution, yet both Paramount and Netflix remain poised to deliver compelling stories to audiences worldwide.