As Netflix reported in its Q2 2022 shareholder letter it lost 970,000 subscribers, it also announced that it will be acquiring Animal Logic, an Australian animation studio behind "Happy Feet," "The Lego Movie," "Peter Rabbit," and more. The acquisition is expected to close sometime later this year.

The two companies are already in a partnership on "The Magician's Elephant," scheduled for a 2023 release, and "The Shrinking of Treehorn," Ron Howard's debut animated feature.

"Netflix has been investing in animation over the past few years and further furthers our commitment to building a world-class animation studio," said Amy Reinhard, Netflix vice president of Studio Operations in an official statement. "Animal Logic is a leading animation studio with innovative technology that will strengthen our existing business and increase our long-term capacity in the animation space, so that we can better entertain our members around the world."

This positions Netflix well to compete with Disney+, which is launching its slate of family-friendly animated films. The company is growing its animation team as it strives to further the buildout of its "end-to-end animation production capabilities.

In April, Netflix announced a new show based on the "Exploding Kittens" card game that it will release next year. The company also decided to cancel some animated projects in May with the likes of "Wings of Fire," "Antiracist Baby," "With Kind Regards from Kindergarten," and Meghan Markle's "Pearl." This is according to Variety.