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Disney Outbids Netflix for CoComelon in High-Stakes Kids Streaming Deal

The Streaming Wars Staff
May 27, 2025
in Programming, Business, News, Partnerships
Reading Time: 2 mins read
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Disney Outbids Netflix for CoComelon in High-Stakes Kids Streaming Deal

Source: Moonbug Entertainment

Disney+ has secured the exclusive global streaming rights to CoComelon beginning in 2027, taking the show away from Netflix and fortifying its position in preschool content. The deal, worth tens of millions annually, according to sources, covers all future seasons of CoComelon, eight seasons of Little Angel, and multiple seasons of JJ’s Animal Time. While these shows remain on YouTube, Disney+ will become their exclusive subscription streaming home.

This is a significant shift in the streaming landscape. Kids’ content plays a vital role in subscriber retention. On Netflix, kids’ programming accounts for about 15% of total viewership. Titles like CoComelon not only bring in families but keep them from churning. Disney+ already dominates this category with Bluey, Spidey and His Amazing Friends, and Mickey Mouse Clubhouse topping Nielsen’s preschool charts. CoComelon, currently ranked #6 in the demo, is a strategic add.

Netflix originally acquired CoComelon in 2020 and has leaned on it as a high-volume performer. The show brought in over 600 million views in 2023 and was the second-most-watched title on Netflix that year. But the momentum faded. Viewership reportedly dropped nearly 60% from early 2023 to late 2024, even as four new seasons launched. Netflix sources say the streamer did make a renewal bid above its current license fee but chose not to match Disney’s higher offer, citing the show’s declining performance.

Still, Netflix isn’t exiting the CoComelon universe entirely. It retains exclusive rights to CoComelon Lane, a spinoff series, as well as Blippi, another Moonbug IP. In what may be a countermove, Netflix also just picked up streaming rights to Sesame Street, signaling its intent to maintain a competitive preschool offering.

Disney’s strategy here mirrors its approach with Bluey, which, like CoComelon, originated outside the traditional studio system and built a global following online before being folded into a larger content platform. With the CoComelon movie set to release in theaters via Universal in 2027, Disney+ now sits at the center of a coordinated cross-platform play.

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Tags: BlueyCandle MediaCoComelonDisney PlusJJ’s Animal Timekids programmingLittle AngelMickey Mouse ClubhouseMoonbug Entertainmentnetflixpreschool contentSpidey and His Amazing Friendsstreaming rightssvodYouTube Kids
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