Netflix and Universal‘s film group have renewed their licensing deal for animated films, including Illumination and DreamWorks titles, adding U.S. rights to live-action Universal and Focus titles starting in 2027.

Releases under the Universal Filmed Entertainment Group tent will continue to have their pay-1 release window on Peacock. But the longer tail of animated films, especially evergreens like Sing, on Netflix has been good business for both companies and will continue under the new agreement.

The pact gives Netflix exclusive rights to the titles no later than eight months following theatrical release. After the initial premiere on Peacock, Netflix will have a 10-month window during which these films are available only on Netflix before they return to Peacock. Netflix will also license rights to Universal’s full animation and live-action film slate for additional windows in subsequent years as well as rights to select titles from Universal’s film library.

“We have always valued our partnership with NBCUniversal, and we are excited to expand it to bring even more entertainment to our U.S. members starting in 2027,” said Bela Bajaria, Chief Content Officer, Netflix. “Illumination and DWA animated films have always been incredibly popular on Netflix, and we are looking forward to adding Universal Pictures and Focus Features live-action films in the years to come. By combining these licensed titles with our Netflix original programming, we can offer our members an exceptional entertainment package with an even greater selection of films to enjoy.”

“With this expanded partnership, we’re providing an optimal experience for today’s consumer with a direct-to-consumer strategy that is advantageous to both NBCUniversal and Netflix,” said Peter Levinsohn, Chairman, Global Distribution, NBCUniversal Studio Group. “We’re always trying to marry our diverse Film slate and innovative windowing strategy with the right partners, and Netflix’s unparalleled support of our slate allows us to make sure our films are enjoyed in the theater and at home by the broadest possible audience.”

The animated properties are notable given Disney’s strategic direction in recent years to prioritize Disney+ with its own titles. Films released by Universal from Illumination and DWA account for three of the top five animated films of 2024 (Despicable Me 4, Kung Fu Panda 4, The Wild Robot). Illumination has racked up nearly $11 billion in global grosses and the Despicable Me/Minions series is the biggest animated franchise of all time. This year, DWA’s 30th anniversary, its films – including franchises such as Shrek, Kung Fu Panda, and How to Train Your Dragon – have grossed more than $17 billion worldwide, the most of any animation studio.

This year has provided more evidence that the licensing partnership is a win-win. As Netflix continues to add subscribers quarter by quarter, Illumination and DWA titles are notable draws. In the first six months of 2024, eight of the top ten animated films on Netflix came from the companies, and Illumination/Nintendo’s The Super Mario Bros. Movie spent a record-setting 38 weeks on Netflix’s Top 10 list in the U.S., with Sing 2 following at 32 weeks.