Come January 2027, CoComelon will be moving to a new exclusive streaming home on Disney+, which snapped up rights to Moonbug Entertainment’s flagship preschool series in the wake of Netflix choosing not to renew a license it’s held since 2020. 

According to Nielsen, CoComelon is currently the sixth most-viewed streaming series for preschoolers in the US. And Disney+ already has the top three series for this audience in its pocket: Bluey (number one), Spidey and His Amazing Friends (number two) and Mickey Mouse Clubhouse (number three). 

CoComelon is still one of the most-viewed preschool series on Netflix, and its first season generated 16.4 million views in the first half of 2024, according to the SVOD’s latest Engagement Report. But the decision to let the show go is based on a 60% decline in viewership that was sustained between H1 2023 and H2 2024, says a spokesperson at the company. Nielsen has also charted a drop in streaming performance for CoComelon, which went from being the fifth most-viewed acquired streaming program (36.3 billion views) in 2023 to not even making the top 10 list in 2024. 

However, Netflix is far from done with Moonbug or the CoComelon franchise. It will continue to exclusively stream spinoffs Blippi and CoComelon Lane, the latter of which “has found its own audience and is resonating with families,” according to the same spokesperson. Season one generated upwards of 50 million views in H2 2024, which is more than any single season of CoComelon. 

Reiterating the value of children’s programming to Netflix, the spokesperson notes that the kids & family audience represents 15% of its total viewing. And while it’s losing CoComelon in 2027, preschool juggernaut Sesame Street is joining the platform this year, thanks to a recent deal with Sesame Workshop and PBS KIDS. 

Going forward, Netflix holds the exclusive worldwide premiere rights to new Sesame Street content, and it plans to launch episodes day-and-date with their first broadcast on US PBS stations and PBS KIDS digital platforms. The streamer also has a license to develop Sesame Street video games, ironically mirroring the approach that gave birth to a game called CoComelon: Play with JJ that launched in October 2022.

It’s worth noting that a source at Moonbug who’s close to the negotiations tells a different story, saying that Netflix put in a higher bid than its current license fee, but Disney outbid it. They claim Netflix is putting a spin on the news, since its own data shows that CoComelon and CoComelon Lane combined were the most-watched IP on the platform in 2023 and 2024, with audiences continuing to watch both series—demontrating a staying power that’s rare on Netflix, the source adds. 

Updated 1:35 p.m. ET with statements from a source close to the negotiations.