Netflix will also continue to release Brad Bird's movie Ray Gunn ahead of Christmas.

Picture Credits: Netflix

The ambitious partnership between Netflix and Skydance Animation is coming to an end, per Deadline. We’ve learned that following the release of Eddie in the Beanstalk in 2027, the animation studio headed by John Lasseter will pivot away from streaming-first releases and head back to theaters under a new distribution strategy.

As many of you will remember, we called Netflix acquiring the rights to Skydance Animation’s slate Netflix’s biggest flex of 2023, partnering with what we dubbed “Pixar 2.0.” After a brief stint with Apple TV+, Skydance brought its heavyweight creative team over to Netflix in a multi-year deal that promised a steady pipeline of top-tier animated features. 

In a statement to Deadline, Netflix and Paramount wrote, “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.”

Here is what we know about the end of the deal, the remaining movies on the Netflix slate, and where Skydance is heading next.

Netflix still has a robust slate of Skydance titles lined up over the next year and a half, as we’ve been tracking in our guide to every new Skydance Animation movie coming soon to Netflix.

First up on the docket is the highly anticipated sci-fi noir Ray Gunn. As we detailed in our massive preview for Ray Gunn’s release date, cast, and plot, the film is confirmed for release on December 18th, 2026 with a very limited theatrical run. We’re quite high on the film after seeing a bunch of footage at Annecy Film Festival and hearing from others who have seen it in full in recent weeks. 

The final swan song for the Skydance/Netflix era will be an adaptation of Jack and the Beanstalk, yet to be officially titled, with Rich Moore directing (Wreck-It Ralph and Zootopia). No release date yet, but this fantasy feature will officially mark the end of the multi-year output deal between the two entertainment giants presumably over the next year or two. 

The partnership has certainly been a rollercoaster in terms of viewership and critical reception.

Things didn’t start with the explosive momentum Netflix likely hoped for. Just a while back, we had to ask: Was Spellbound a disappointment for Netflix? The fantasy musical struggled to capture the zeitgeist in the way comparable Disney or Pixar films traditionally do.

However, they more than made up for it with their massive smash hit, Swapped. The body-swap comedy became a global phenomenon for the streamer, racking up staggering viewership numbers. If you need proof of its success, look no further than it smashing its way onto the Netflix Top 10 All-Time Most Popular list. We absolutely loved it too—you can read our review of Swapped here.

Picture Credit: Netflix

With the Netflix output deal ending after its new Jack and the Beanstalk movie, Skydance Animation is pivoting hard back to traditional cinemas.

Their subsequent slate will be distributed theatrically through Paramount Pictures (and Warner Bros., assuming the much-discussed corporate merger/distribution deal goes through).

The first post-Netflix projects on the horizon for Skydance include Cosmic Motors, directed by former Pixar head John Lasseter himself; this sci-fi vehicle adventure will mark Lasseter’s return to the director’s chair. Louie Del Carmen, per Deadline, will co-direct.  

We’ve also been hearing of a project called Untitled Jaguar Project, but details remain tightly under wraps.

While it’s a shame to lose such a premium pipeline of animated features on Netflix, the streamer still holds a massive internal animation division and a tight relationship with Sony Pictures Animation. In fact, Netflix’s animation feature slate remains pretty robust through 2027 and beyond. Netflix’s first fully produced internal movie drops in November: Steps and Charlie Vs. The Chocolate Factory recently got a huge vote of confidence with a robust theatrical release scheduled for late 2027. A sequel to Adam Sandler’s Leo and Guillermo del Toro’s stop motion movie The Buried Giant are also in the works. 

Are you disappointed that the Skydance Animation and Netflix partnership is coming to an end? Are you excited for Ray Gunn and Eddie in the Beanstalk? Let us know in the comments down below!