Netflix and Nickelodeon have agreed to a multi-year deal to produce original animated shows and feature films for kids and families worldwide. The programming will be based on popular Nickelodeon characters along with new ones. The companies have previously worked together bringing shows like Rockos Modern Life: Static Cling and Invader Zim: Enter the Florpus to Netflix. Netflix subscribers can also look forward to upcoming specials including The Loud House and Rise of the Teenage Mutant Ninja Turtles. The news comes just one day after the premiere for Disney+, the new direct-to-consumer streaming subscription service.

The New York Times reports that the partnership is worth more than $200 million to Nickelodeon. It is not clear how long the deal is for or if Nickelodeon can make similar deals with other streaming providers for other licensed content.

Nickelodeon has generated scores of characters that kids love, and we look forward to telling wholly original stories that re-imagine and expand on the worlds they inhabit, said Melissa Cobb, Netflix vice president of original animation, in a November 13 announcement. Were thrilled to continue collaborating with Brian Robbins, Ramsey Naito, and the creative team at Nickelodeon in new ways as we look to find fresh voices and bring bold stories to our global audience on Netflix.

Brian Robbins, president of Nickelodeon, also commented on the expanded partnership.

Nickelodeons next step forward is to keep expanding beyond linear platforms, and our broader content partnership with Netflix is a key path toward that goal, said Robbins.

The Nickelodeon Animation Studio is home to the world-class artists and storytellers behind some of the most iconic characters and shows ever made, and our head of animation, Ramsey Naito, has been building on that legacy over the past year by ramping up development and production exponentially. The ideas and work at our studio are flowing, and we cant wait to work with Melissa and the Netflix team on a premium slate of original animated content for kids and families around the world, Robbins added.

The New York Times says this move indicates that Nickelodeon doesnt need to create its own direct-to-consumer streaming service. Instead, it can develop relationships with companies like Netflix to share its content.

The 40-year-old, Viacom-owned Nickelodeon is the number-one entertainment brand for kids of all ages. In addition to shows like Blues Clues & You, Spongebob Squarepants, Paw Patrol and the Knight Squad, the brand offers games and several apps – Nick (free), Nick Jr. (free) and Noggin, a mobile streaming subscription service. While Nick and Nick Jr. are free to download, to watch full episodes of Nickelodeon programs, users have to login with their cable company credentials.

Insider Take:

This is well-timed announcement for Netflix and Nickelodeon, especially since Disney+ experienced so many problems on day 1 of its launch. Netflix currently has some Disney content, but as licenses for that content expires, Disney will bring that content back in house. But Netflix isnt resting on its laurels, waiting for those licenses to expire. They are actively working to provide original programming for kids and families, not necessarily to compete with Disney+, but so that families are willing to subscribe to both streaming services.