Netflix Acquires Animation Studio Animal Logic; Has the Streamer Found Its Pixar?
While everything is not necessarily awesome over at Netflix, things definitely took a noticeable turn away from the grave for the world’s largest streamer on Tuesday as the company reported a less devastating subscriber loss total than initially predicted. Instead of losing 2 million global customers, Netflix “only” shed 970k; a win in the eyes of the company’s execs and Wall Street — at least in early trading.
But that wasn’t the only announcement that the streaming giant made in conjunction with its second-quarter earnings report. Netflix announced that instead of the previously floated late-2022 launch, the streamer’s oft-discussed ad-supported tier would become available to customers in “early 2023.” However, with all of the discussion of subscriber totals and ad-integration, one announcement that has gone a bit under the radar is that Netflix has begun the process to acquire animation and visual effects studio Animal Logic.
The digital studio has most recently been celebrated for “The Lego Movie” franchise which has grossed over $1 billion at the worldwide box office. However, the company has been behind the digital effect for such high-profile projects including “Babe,” multiple “Matrix” movies, six Marvel films, “Moulin Rouge!,” “Planet of the Apes,” “Harry Potter and the Goblet of Fire,” “300,” “Sucker Punch,” “The Great Gatsby,” and more — not to mention the animation for “Happy Feet,” “DC League of Super-Pets,” “Peter Rabbit,” “Legend of the Guardians: The Owls of Ga'Hoole,” and more.
Currently, the studio is working on two films specifically for the streamer — “The Magician’s Elephant” and
“The Shrinking of the Treehorns,” Ron Howard’s first animated film.
The Lego Movie Movies
A series of films based on the toys of the same name.
“Netflix has been investing in animation over the past few years and this furthers our commitment to building a world-class animation studio,” Netflix vice president of studio operations Amy Reinhard said. “Animal Logic is a leading animation studio with innovative technology that will strengthen our existing business and increase our long-term capacity in the animation space, so that we can better entertain our members around the world.”
While Netflix will continue to work with other animation creators, this is a significant investment in the space, especially given the narrative around the streamer as of late. After posting a net subscriber loss for the first time since 2011, the narrative around the company has been dire since April, but an acquisition of this size — expected to close “later this year” — shows that Netflix is not simply in survival mode, but still very much looking toward the future.
Though not an exact apples-to-apples comparison, the acquisition does call to mind Disney’s purchase of Pixar. Animal Logic will continue to operate independently and will work with studios and filmmakers outside of the Netflix ecosystem, but given the streamer’s increased investment in animation with the recent releases of “Apollo 10 1/2,” “The Sea Beast,” Guillermo del Toro’s “Pinocchio,” an upcoming sequel to “Chicken Run,” and more, it is clear that the services sees gains in the family-friendly space.
With Animal Logic now part of Netflix’s corporate family, an increase in animated films coming to the platform will only help hook and retain the ever-important family demographic that nearly every streaming service is looking to court.
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.