Disney+ has acquired preschool series “CoComelon” after Netflix declined to renew its license. The acquisition grants Disney+ rights to all seasons of the animated show starting in 2027, according to The Hollywood Reporter.

Netflix sources cite a significant viewership decline as the reason for not renewing. The preschool series experienced a nearly 60% drop in viewership from the first half of 2023 to the second half of 2024, despite releasing four new seasons in 2024. However, a source close to negotiations claims Netflix actually submitted a higher bid than its current fee, with Disney ultimately outbidding the streaming giant.

“CoComelon” joins Disney+’s existing children’s programming lineup, which includes popular titles such as “Bluey,” “Spidey and His Amazing Friends,” and “Mickey Mouse Clubhouse.”

Netflix retains exclusive streaming rights to spinoff “CoComelon Lane and Blippi.” Children’s programming represents 15 percent of Netflix’s total viewing time, with other titles including “Sesame Street,” “Ms. Rachel,” and “Peppa Pig.”

Franchise Expansion Amid Streaming Shift

According to Nielsen’s latest report, YouTube currently leads both Netflix and Disney+ in streaming viewership, capturing 12.4% of total TV viewing time in April. This marks YouTube’s third consecutive month of record viewership, positioning it as the top streaming platform ahead of both Netflix and Disney+.

Acquiring high-performing children’s content like “CoComelon” aligns with Disney’s strategy to compete in the competitive streaming market, where YouTube’s share has increased by 2.8 percentage points year-over-year.

The franchise, produced by Candle Media-owned Moonbug Entertainment, follows baby JJ and his siblings through everyday adventures. Originally launched on YouTube, “CoComelon” continues to expand with Moonbug Entertainment and Flywheel Media, recently greenlighting an animated feature film with Universal Pictures, which is scheduled for theatrical release in 2027.