London Daily

Focus on the big picture.
Sunday, Jul 12, 2026

Disney faces competition as streaming giants ramp up animation production

Disney faces competition as streaming giants ramp up animation production

Netflix, HBO Max, Amazon Prime, Paramount+ seek foothold in other forms of film and TV production
Tinseltown has gone animation crazy in the wake of the pandemic, which has stalled live action production and accelerated demand for family-friendly content that can be streamed at home.

Studios are now plowing money into making cartoons like never before — despite knowing that toppling the creator of Mickey Mouse and “Frozen” will be tricky, if not impossible, sources said.

“All the streamers wanted animated shows to brand their networks, but the pandemic has made it even more so. Everyone is doubling down,” said Titmouse founder and president Chris Prynoski, who has worked on shows like MTV’s “Beavis and Butthead” and Nickelodeon’s “Baby Shark’s Big Show!”

Animation deals are “exploding,” added a dealmaker with a top Hollywood agency who has also seen budgets for animated content balloon. Before the rise of streaming, animated budgets were between $350,000 and $750,000 per episode. Now, some shows have budgets of over $5 million, said the source.

Netflix has made no bones about its efforts to challenge Disney in the animation space. “We’re very fired up about catching them [Disney] in family animation — maybe eventually passing them, we’ll see, a long way to go just to catch them — and maintaining our lead in general entertainment that’s so stimulating,” Netflix founder and co-Chief Executive Officer Reed Hastings said in January.

But it’s not just Netflix that’s eager to chip away at Disney’s market share. HBO Max, Paramount+ and Amazon Prime Video, just to name a few, have also jumped headlong into race as the pandemic strangles other forms of film and TV production.

And it’s a trend that’s expected to last for years to come — even after the pandemic ends — as Hollywood studios vie for family-friendly material to help them win the streaming wars.

“I think it’s going to be a really interesting next couple of years in the animation industry,” said Sam Register, president of Warner Bros. Animation and Cartoon Network studios. “We all have great content. We all have great IP [intellectual property]. We all have studios. I don’t think any one company is absolutely a projected dominant player in this space.”

But experts see the Bob Chapek-led Disney maintaining its perch, thanks to the decades it’s spent building its library of animated content and intellectual property, as well as its solid reputation for providing family entertainment.

“Disney has that platinum brand,” said media analyst Michael Nathanson of MoffettNathanson. “Even if there’s a little bit of share loss” it will stay on top, he predicted.

“For the other products, HBO Max, Paramount+, you have to convince people, who are new to those brands, that those brands stand for kids entertainment,” he said.

There’s more room to compete in adult animation, Nathanson added.

It’s one reason AT&T’s new streaming service HBO Max — buttressed by its Warner Bros. studio — paid over $500 million for the streaming rights to raunchy cartoon “South Park” ahead of its May 2020 launch.

This year, the studio run by Jason Kilar’s WarnerMedia also scored a family-friendly animated hit with its “Tom & Jerry” movie starring Chloe Grace Moretz, which debuted in cinemas and on HBO Max simultaneously last month. The comedy, based on the 1940 cartoon, raked in $13.7 million on opening weekend — the best domestic opening of the year.

Warner, which created new episodes of “Looney Tunes” for HBO Max last year, is also slated to debut “Gremlins,” an animated prequel based on the 1984 film, later this year.

Amazon also went the adult route with its first original animation series “Undone,” about life after almost dying, in 2019. And in March it will debut the adult animated series “Invisible” by “The Walking Dead” creator Robert Kirkman.

The Jeff Bezos-led streamer has also invested in a slew of children’s programs, including “Pete the Cat” and “Lost in Oz,” as well as licensed shows like “Dora the Explorer” and “SpongeBob SquarePants.”

Netflix, which launched its animation studio in 2018, has made the biggest strides by far in both family and adult animation. On the adult side, it has hits like “Big Mouth” about an awkward teen, and “BoJack Horseman” about a washed up Hollywood horse.

For kids, Netflix last year released “The Willoughbys,” about four siblings featuring the voices of Ricky Gervais and Alessia Cara, as well as animated musical “Over the Moon,” which was directed by Glen Keane, a legendary ex-Disney animator.

The streaming giant has also invested an estimated $1 billion for rights to bring Roald Dahl’s works to life in animated form.

“It feels like we’re in the golden age of animation here at Netflix,” head of animation, Melissa Cobb, told The Post. “In a few short years we’ve created a one-of-a-kind studio, one that is breaking down the walls creators face, like a house style, language or borders.”

But even Netflix isn’t predicted to topple Disney anytime soon. “I do not think Netflix will pass Disney, but Netflix has a great track record and I expect them to have some major hits,” said Jeff Wlodarczak, founder and CEO of Pivotal Research Group.

“As for other streamers in animation, to keep up with Disney and Netflix very large dollars will need to be spent and I question whether most will be able. But for the next couple of years,” he added, “I expect others to try.”
Newsletter

Related Articles

0:00
0:00
Close
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
National Health Service Expands Artificial Intelligence Diagnostics Across England to Reduce Screening Backlogs
United Kingdom Launches Fifty Billion Pound Infrastructure Fund to Accelerate Housing and Construction
UK Medical Chiefs Update Health Guidance to Promote Everyday Physical Activity
Office of Communications Keeps Wikipedia Under Review Under UK Online Safety Rules
UK Defence Ministry Expands Deep-Strike Capability Through Precision Missile Programme
Russell Group Universities Warn Funding Cuts Could Damage NHS Workforce Training
UK Parliament Calls for National Emergency Broadcast as Heatwave Conditions Intensify
UK and Netherlands Strengthen Naval Cooperation With New Amphibious Defence Partnership
UK Defence Ministry Joins International Missile Programme With One Hundred and Ninety Million Pound Investment
Bank of England Warns Middle East Conflict and AI Risks Could Pressure UK Economy
UK Government Introduces New Rules to Limit Foreign Influence in Political Donations
UK and France Prepare Naval Mission to Protect Shipping Through Strait of Hormuz
United States Pressures UK to Increase Defence Spending at NATO Summit
Bank of England Warns Artificial Intelligence Investment Boom Could Create Financial Stability Risks
Bank of England Begins Direct Oversight of Critical Technology Providers Supporting UK Finance
Andy Burnham Set to Become UK Prime Minister After Labour Leadership Race Clears Path to Downing Street
Scottish Fishing Industry Calls for Emergency Support Amid Rising Costs
UK Supports Stronger European Response to Russian Actions in Ukraine
Devon and Cornwall Police Release Suspect in Ann Widdecombe Murder Investigation
×