Animation Is Netflix’s Secret Weapon—Just Not In Theaters

Is animation Netflix’s double-edged sword? Based on the benefits and struggles the market-leading streamer has experienced within the genre, it very well might be. 

Netflix’s strategic use of animated content has helped drive global demand from 2022-2024, particularly in key growth markets, according to Parrot Analytics. Specifically, the streaming giant's animated television efforts generate consistent engagement and have helped as acquisition drivers, even as the company’s original animated films struggle to match the output of major studios' animated theatrical output. 

Animation consumption among Netflix’s prospect pool from Q4 2022-Q4 2024 shows significant variance among major markets. The Asia-Pacific (APAC) region — Netflix’s second-largest market in quarterly net subscriber adds over the last five quarters — is the top animation viewership market, routinely collecting between 18-23% of potential subscriber content consumption. This shows that Netflix's animated TV efforts resonate strongly with audiences in crucial markets like Japan, South Korea, and Southeast Asia, where animation traditionally enjoys broad demographic appeal.

Latin America (LATAM) — which is Netflix’s weakest market in average quarterly net adds — has seen the biggest rise in animated consumption, growing from around 12% in early 2023 to roughly 20% by Q4 2024. Unsurprisingly, this spike aligns with Netflix's increased investment in local language programming and partnerships with regional creators, particularly in upside markets like Brazil and Mexico. Overall, Spanish and Portuguese language streaming originals have risen in supply and demand industry wide over the last four years. 

The U.S. and Canada (UCAN) region — which boasts Netflix’s highest average revenue per user (ARPU) customers — has seen a high level of fluctuation, with animation consumption ranging from 14% to 21% of prospect viewing. These variations likely correspond to major series releases and seasonal viewing patterns. It also underscores a truth of the streaming era: animation has a viewership ceiling in the US. However, Europe, Middle East, and Africa (EMEA) see far more consistently in this programming lane, ranging between 13-16% throughout the period.

This television animation success stands in stark contrast to Netflix's original filmed animation efforts. While the streamer has produced notable animated features like The Sea Beast and Leo, these haven't generated the same level of audience demand as theatrical releases from established animation powerhouses. Traditional studio offerings from Disney Animation, Pixar, DreamWorks, and Illumination continue to rack up box office revenue while dominating on streaming. The disappointment of Netflix’s Spellbound, the first entry in the streamer’s new partnership with Skydance Animation, led by ousted Pixar creative John Lasseter, only exacerbates this issue. 

The divergence between Netflix's TV and film animation performance highlights the different dynamics at play in streaming versus theatrical animation. While theatrical animated features often require massive marketing budgets and years of production time, streaming animated series can be produced more efficiently and target specific audience segments or regional preferences more precisely. (Though that doesn’t explain the three year wait for Season 2 of Blood of Zeus, but I digress). It is particularly helpful in the kid-friendly arena (see: Bluey, Cocomelon, Paw Patrol, etc.). 

So what are the major takeaways? Netflix has established squatter’s rights on effective episodic animation, particularly in markets where animation is a widely embraced mainstream medium rather than just seen as a vehicle for children's programming. The strategy appears especially effective in APAC and LATAM regions, where animation enjoys broad cultural acceptance across age groups and often serves as a gateway to broader platform engagement.

For industry observers, these trends indicate that while Netflix may not yet rival traditional studios in movie animation, its platform-specific approach to animated content is driving meaningful engagement in key growth markets. As the streaming landscape continues to evolve, Netflix's regional success with animated series could provide a blueprint for other platforms seeking to expand their global footprint through targeted content strategies.

The challenge ahead for Netflix will be maintaining this momentum in serial animation while potentially developing a more competitive theatrical animation presence, should they choose to pursue that market more aggressively. For now, the data suggests their television animation strategy is effectively serving its primary purpose: attracting and engaging viewers in crucial international markets.