Sorry Prime Video subscribers, Universal’s animation and live-action movies will eventually stream on Netflix instead

Mario and Luigi bump fists in The Super Mario Bros. Movie

Netflix has made a new deal with Universal. (Image credit: Universal Pictures/Illumination)

It's a good day to be a Netflix subscriber as the streaming platform is set to add even more Universal movies to its vast library of titles. The best streaming service has renewed its deal with Universal Filmed Entertainment Group that allows Netflix to stream the studio's animation films, according to The Hollywood Reporter.

In addition, the two companies have signed a new deal that will see live-action films from Universal Pictures and Focus Features appear on Netflix no later than eight months after their theatrical release, starting in 2027. These new live-action movies will still initially debut on Peacock, but after four months the titles will move to Netflix, which will get to exclusively stream Universal's live-action films for 10 months before they return to Peacock at the end of this window.

Netflix will also renew the existing licensing deal for Universal's full animation and live-action film catalogue from Illumination and DreamWorks Animation (DWA), as well as rights to certain titles from Universal’s huge film library.

However, it's bad news for Prime Video's existing deal with Universal. Since 2022, Universal titles have landed on Prime Video after a brief run on Peacock, now Netflix's new arrangement with the studio will eventually replace this.

Netflix and Universal thrills

Thanks to Netflix and Universal's current partnership, The Super Mario Bros. Movie became one of the streaming giant's most-watched movies of 2024, which spent a record-setting 38 weeks on Netflix’s Top 10 list in the US, meanwhile Sing 2 remained in the Top 10 for 32 weeks. Other hit Universal flicks such as The Secret Life of Pets, Kung Fu Panda 4 and Minions: The Rise of Gru have also been a huge success for the platform with all of them landing a place on the Top 10.

With the agreement now being renewed, this means that we'll get to see some highly-anticipated animations arrive in the future that could end up on the best Netflix movies list, including The Super Mario Bros. Movie 2, Minions 3, and the one I'm most excited for: Shrek 5.

Bela Bajaria, Chief Content Officer, Netflix said in a Netflix press release: “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. 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.”

After graduating with a degree in Writing and Film Studies, Grace dived into the world of entertainment where she started writing all about the must-watch shows and movies at What To Watch. Now Grace is on her next writing adventure at TechRadar, where she uses her expertise to help readers keep up to date on the biggest TV shows and movies in the ever-changing world of streaming. If she’s not writing about her passion for entertainment, you’ll find her watching reality shows while feasting on chocolate.