Netflix joins forces with Nickelodeon to take on Disney+

WASHINGTON (SBG) -- One day after Disney launched their new streaming service, Netflix responded by signing a deal with Nickelodeon to produce new movies and television shows based on old and new characters from the network.

The New York Times reports the deal is worth more than $200 million and will include a music-based spin-off of "Spongebob Squarepants" centered around popular character Squidward. Netflix will also air specials based on "The Loud House" and "Rise of the Teenage Mutant Ninja Turtles."

This isn't the first time Netflix and Nickelodeon have worked together. “Rocko’s Modern Life: Static Cling” and “Invader Zim: Enter the Florpus” recently premiered on the streaming service. Popular hits like "Spongebob Squarepants" and "Dora the Explorer" were also on Netflix until 2013 when Amazon Prime acquired the right to stream those shows.

The LA Times reports the network has no plans to sell reruns of their current popular series to Netflix. It is unknown if Nick will license their most valuable cartoons to another streaming service, keep them in-house on a service owned by their parent company Viacom or keep them away from the internet.

Viacom is set to close their merger with CBS by the end of the year which opens the door for streaming service CBS All Access to potentially become the home for popular shows like "Spongebob Squarepants," "Blue's Clues" and “The Casagrandes.”

In late 2018, Nickelodeon teamed up with AT&T to launch a streaming service filled with Nickelodeon shows from the 90's such as "CatDog" and "Doug." It is unclear if those shows will continue to stream on this service or go elsewhere as AT&T also moves to launch their own platform known as HBO Max next spring.

Netflix's big announcement comes after Disney revealed 10 million people have already signed up for Disney+.