Netflix Will Increase Its Animated Feature Spend In 2024 Following Successes Of Films Like ‘Leo,’ ‘The Sea Beast’

Netflix co-CEO Ted Sarandos says the streamer plans to increase its investment in feature animation in 2024.

Speaking at UBS’ Global Media and Communication Conference on Monday, Sarandos said that Netflix will spend roughly $17 billion on programming content in 2024, as long as that figure stays in line with the company’s growth. Part of that spend will include greater investment in feature animation.

According to Sarandos, animated titles are some of the most re-watched content by subscribers:

I know this sounds kind of old-fashioned, but since Nielsen has been tracking streaming, eight of the top 10 movies ever streamed are all animated features. That’s by viewing hours, so there’s a lot of repeat watching going into it, but it adds a ton of value. There’s plenty of appetite for more than the few films a year that we’re currently doing.

Sarandos’ comments come as a bit of a surprise, given that Netflix recently laid off many workers from its animation division in a restructuring move meant to decrease the number of animated features produced in-house.

At the time, the company indicated it would acquire more projects from third-party producers through output deals, a cost-effective alternative to producing its own content. Maybe that’s what Sarandos was talking about on Monday when he mentioned increased investment in animated films. For example, shortly after the Netflix Animation layoffs were announced, the company revealed it had closed a distribution deal with Luck producer Skydance Animation, further emphasizing a commitment to acquisition.

That said, Netflix originals have done exceptionally well in 2023, and the studio may be reevaluating its decision to produce fewer of its own titles. As we reported last week, Adam Sandler’s new animated feature Leo had the biggest debut ever for a Netflix animated film over its first six days on the platform. The movie has been watched for 103 million hours after its first two weeks and looks like an absolute lock to pass The Sea Beast’s 28-day viewing record of 165 million hours.

Sarandos referenced both Netflix original films during his talk, explaining, “I think going from Sea Beast to Leo has been success to success for us in a very new business.”

Other animated originals to debut strongly on the platform this year include The Monkey King, Miraculous: Ladybug & Cat Noir The Movie, and Nimona, to name a few. And Netflix will debut Aardman Animations’ Chicken Run sequel, Dawn of the Nugget, next week, which feels sure to be popular with families over the holidays.