According to a statement from the firm, Netflix Inc. intends to buy Sydney-based animation studio Animal Logic. The streaming service added that it hoped to use this acquisition to further its initiatives to develop complete animation production capabilities.
According to Amy Reinhard, vice president of studio operations at Netflix, "Netflix has been investing in animation over the past few years, and this furthers our commitment to developing a world-class animation studio."
This acquisition was unexpectedly announced by Netflix immediately before it released its Q2 report. The streaming platform stated that it anticipates concluding this contract by the end of this year without disclosing the specifics of the agreement.
However, the business did note that as part of the partnership, it will build a global production studio alongside Animal Logic animators to collaborate on a number of important forthcoming films and television shows. Netflix confirmed further that it would keep working with other studios.
Zareh Nalbandian is the creator and CEO of Animal Logic. A second studio is located in Vancouver, Canada. The future Ron Howard-directed movies "The Shrinking of the Treehorns" and "The Magician's Elephant" are already in production at the Australia-based animation studio Animal Logic, Netflix, and Animal Logic.
In its Q2 report, which Netflix had previously provided, it was noted that it had lost nearly 1 million customers during the spring due to stiffer competition and global inflation that was on the rise. It was a relief, though, as the numbers were far lower than anticipated.
The company has been planning to launch an ad-supported plan for the customers, which might come for free or at an even lower cost than the plans today, to attract new users. The competition in the OTT industry has eaten up the market share of Netflix, which has been going through a rough patch. The company has lost subscribers globally for consecutive months now, and most of it is because of its pricing structure and alternatives for consumers at a lower price.